Massachusetts Health Connector Contract Could Be a Game Changer for Maximus (MMS)

• Earlier this month, the Massachusetts Health Connector announced it awarded Maximus a new US$31 million four-year contract to provide enrollment, premium billing, and a redesigned digital portal for over 370,000 marketplace members.
• This contract significantly expands Maximus's role in digital government services, reinforcing its position as a technology partner for public sector clients.
• We'll examine how this new public sector contract opportunity may strengthen Maximus's digital transformation narrative and long-term growth outlook.

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Maximus Investment Narrative Recap

To be a Maximus shareholder, you need to believe that demand for outsourced government technology and digital services will accelerate as agencies pursue digital transformation, despite trends toward automation and insourcing. The US$31 million Massachusetts Health Connector contract increases Maximus's footprint in tech-enabled public sector work, but does not materially change the near-term catalyst of new federal and state compliance mandates, nor the limiting risk from automation and client insourcing pressures.

Among recent announcements, the July 2025 win of a US$77 million U.S. Air Force cybersecurity and cloud services contract best illustrates Maximus's pivot toward higher-margin, technology-driven solutions, both contracts highlight how public sector digitization could increase the company’s earnings growth potential if it can maintain its competitive edge.

Yet, despite these digital contract wins, investors should be aware that the accelerating adoption of automation and AI by government clients could...

Read the full narrative on Maximus (it's free!)

Maximus is projected to reach $6.1 billion in revenue and $486.5 million in earnings by 2028. This outlook assumes annual revenue growth of 3.9% and a $170.3 million increase in earnings from the current level of $316.2 million.

Uncover how Maximus' forecasts yield a $105.00 fair value, a 23% upside to its current price.

Exploring Other Perspectives

The Simply Wall St Community provided one fair value estimate for Maximus at US$105 per share prior to this latest news, showing no spread of opinion. Against this backdrop, keep in mind that increased automation by public clients may weigh on addressable market size and long-term revenue visibility if Maximus cannot keep pace. Explore a range of insights on the company from different market participants.

Explore another fair value estimate on Maximus - why the stock might be worth as much as 23% more than the current price!

Build Your Own Maximus Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Maximus research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Maximus research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Maximus' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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