Aramark (NYSE:ARMK) Posts Quarterly Earnings Results, Beats Expectations By $0.04 EPS

Aramark (NYSE:ARMK) issued its earnings results on Tuesday. The company reported $0.52 earnings per share for the quarter, topping the consensus estimate of $0.48 by $0.04, Briefing.com reports. Aramark had a return on equity of 17.93% and a net margin of 1.93%.The firm had revenue of $5.06 billion for the quarter, compared to analyst estimates of $4.94 billion. During the same period last year, the company earned $0.40 earnings per share. The firm’s revenue for the quarter was up 9.3% on a year-over-year basis. Aramark updated its FY 2026 guidance to 2.180-2.280 EPS.

Here are the key takeaways from Aramark’s conference call:

• Fiscal 2026 organic revenue growth guidance was raised to 9%–10%, reflecting broad-based momentum across U.S. and international operations and an early contribution from Aramark Nexus. Adjusted operating income growth remains guided at 12%–17%, with adjusted EPS growth of 20%–25%.
• Third-quarter organic revenue increased 9% to $5 billion, while adjusted operating income rose 13% to $261 million and adjusted EPS grew nearly 30% to $0.52; results would have been stronger absent an estimated $20 million calendar-shift impact.
• Aramark Nexus is scaling rapidly, with the initial hyperscaler engagement expanding roughly 40% to about $140 million annually, a second site estimated at approximately $160 million annually, and a separate AI data-center colocation agreement. The three most advanced sites are expected to generate roughly $400 million–$500 million of annual revenue as they ramp through fiscal 2027–2028, at margins above the company average.
• Business fundamentals remain strong, including approximately 98% client retention, $1.6 billion of fiscal-year-to-date new client wins—up 51% year over year—and double-digit growth in Workplace Experience and Refreshments for the 19th consecutive quarter.
• Strong cash generation enabled Aramark to repay $100 million of term loans after quarter-end, and management remains committed to reducing leverage below three times by fiscal year-end. Future capital allocation could include continued growth investment, targeted M&A, and potentially increased share repurchases.

Aramark Stock Up 0.6%

NYSE ARMK traded up $0.35 during trading on Thursday, reaching $60.70. The company’s stock had a trading volume of 276,969 shares, compared to its average volume of 2,871,492. The company has a current ratio of 1.21, a quick ratio of 1.07 and a debt-to-equity ratio of 1.85. The stock has a market capitalization of $15.96 billion, a PE ratio of 42.43, a PEG ratio of 1.14 and a beta of 1.12. The business has a 50-day moving average price of $55.97 and a 200-day moving average price of $47.92. Aramark has a 1-year low of $35.07 and a 1-year high of $61.52.

Aramark Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, September 9th. Stockholders of record on Wednesday, August 19th will be issued a dividend of $0.12 per share. This represents a $0.48 annualized dividend and a dividend yield of 0.8%. The ex-dividend date is Wednesday, August 19th. Aramark’s payout ratio is currently 33.57%.

Analyst Upgrades and Downgrades

Several research firms have commented on ARMK. Morgan Stanley set a $63.00 target price on shares of Aramark in a research note on Tuesday. Deutsche Bank Aktiengesellschaft reiterated a “buy” rating and set a $74.00 price objective on shares of Aramark in a research note on Wednesday. Bank of America boosted their target price on Aramark from $59.00 to $62.00 and gave the stock a “buy” rating in a report on Tuesday, June 2nd. JPMorgan Chase & Co. increased their price target on Aramark from $55.00 to $70.00 and gave the company an “overweight” rating in a research note on Thursday. Finally, Stifel Nicolaus raised their price objective on shares of Aramark from $54.00 to $70.00 and gave the company a “buy” rating in a research report on Wednesday. Twelve analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat, Aramark has a consensus rating of “Moderate Buy” and a consensus price target of $67.82.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the stock. Caitong International Asset Management Co. Ltd acquired a new position in Aramark during the third quarter valued at approximately $28,000. Kestra Advisory Services LLC acquired a new stake in shares of Aramark in the fourth quarter worth $32,000. Quarry LP bought a new stake in shares of Aramark during the 3rd quarter worth $35,000. Osterweis Capital Management Inc. bought a new stake in shares of Aramark during the 2nd quarter worth $40,000. Finally, Los Angeles Capital Management LLC acquired a new position in Aramark in the 4th quarter valued at $49,000.

Aramark Company Profile

Aramark (NYSE: ARMK) is a global provider of food services, facilities management and uniform solutions, serving clients across a wide array of industries including education, healthcare, business and government. The company operates through three primary segments: Food and Support Services, Uniform and Career Apparel, and Facility Services, delivering integrated solutions designed to enhance guest experiences, improve operational efficiencies and maintain safe, clean environments. Aramark’s offerings include corporate dining, patient and senior nutrition, campus dining, sports and entertainment concessions, custodial services, technical maintenance and industrial laundry.

Founded in 1959 and headquartered in Philadelphia, Pennsylvania, Aramark has expanded its footprint to more than 20 countries, with a strong presence in North America, Latin America, Europe and Asia.