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

Aramark (NYSE:ARMK) announced its earnings results on Tuesday. The company reported $0.52 earnings per share for the quarter, topping analysts’ consensus estimates of $0.48 by $0.04, Briefing.com reports. Aramark had a net margin of 1.84% and a return on equity of 17.05%. During the same period last year, the firm posted $0.40 earnings per share. The business’s revenue for the quarter was up 9.3% compared to the same quarter last year. 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 7.8%

Shares of NYSE:ARMK traded up $4.34 during trading on Tuesday, hitting $60.05. The stock had a trading volume of 538,546 shares, compared to its average volume of 2,850,410. The firm’s fifty day moving average is $55.70 and its 200 day moving average is $47.62. The company has a quick ratio of 1.07, a current ratio of 1.21 and a debt-to-equity ratio of 1.85. The company has a market capitalization of $15.79 billion, a PE ratio of 44.90, a PEG ratio of 1.06 and a beta of 1.12. Aramark has a 12 month low of $35.07 and a 12 month high of $60.58.

Aramark Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 9th. Shareholders of record on Wednesday, August 19th will be given a dividend of $0.12 per share. This represents a $0.48 annualized dividend and a yield of 0.8%. The ex-dividend date of this dividend is Wednesday, August 19th. Aramark’s payout ratio is presently 35.82%.

Hedge Funds Weigh In On Aramark

A number of hedge funds have recently added to or reduced their stakes in ARMK. Caitong International Asset Management Co. Ltd purchased a new stake in shares of Aramark during the third quarter worth about $28,000. Kestra Advisory Services LLC purchased a new position in Aramark during the fourth quarter valued at approximately $32,000. Quarry LP purchased a new stake in shares of Aramark during the third quarter valued at about $35,000. Osterweis Capital Management Inc. acquired a new position in shares of Aramark during the second quarter worth $40,000. Finally, Los Angeles Capital Management LLC purchased a new stake in Aramark in the fourth quarter valued at about $49,000.

Analyst Ratings Changes

Several brokerages have issued reports on ARMK. Morgan Stanley raised their price objective on shares of Aramark from $45.00 to $50.00 and gave the stock an “equal weight” rating in a research report on Wednesday, May 13th. Robert W. Baird set a $63.00 target price on Aramark in a report on Friday, July 24th. Stifel Nicolaus increased their price target on Aramark from $47.00 to $54.00 and gave the company a “buy” rating in a research report on Wednesday, May 13th. Royal Bank Of Canada raised their target price on Aramark from $47.00 to $55.00 and gave the company an “outperform” rating in a research report on Thursday, May 14th. Finally, The Goldman Sachs Group restated a “buy” rating and set a $51.00 price objective on shares of Aramark in a report on Wednesday, May 13th. Eleven research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $60.62.

About Aramark

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.