Aramark (NYSE:ARMK) Posts Quarterly Earnings Results, Beats Expectations By $0.02 EPS

Key Points

• Aramark beat quarterly expectations, reporting EPS of $0.49 versus the $0.47 consensus and revenue of $4.91 billion, above estimates. Revenue rose 14.7% year over year, and adjusted FY 2026 EPS guidance was updated to $2.18–$2.28.
• The company said operating performance improved sharply, with second-quarter organic revenue growth of 12%, operating income up 26%, and adjusted EPS up 40%. Management credited productivity gains, supply-chain efficiencies, and cost control.
• Aramark also highlighted strong commercial momentum, including a client retention rate above 98% and $1 billion in new client signings year to date. Management is also entering the hyperscale AI data center market through its Nexus platform, though that opportunity is not yet included in guidance.

Aramark (NYSE:ARMK - Get Free Report) issued its quarterly earnings results on Tuesday. The company reported $0.49 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.47 by $0.02, FiscalAI reports. Aramark had a net margin of 1.69% and a return on equity of 16.15%. The business had revenue of $4.91 billion for the quarter, compared to analyst estimates of $4.75 billion. During the same period in the previous year, the business posted $0.35 earnings per share. The business's revenue was up 14.7% 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:

• Aramark reported strong second-quarter organic revenue growth of 12% to $4.8 billion, with broad-based growth across the U.S. and international businesses driven by new wins and base business expansion.
• The company delivered meaningful profit improvement, with operating income up 26%, adjusted operating income up 24% on a constant-currency basis, and adjusted EPS up 40%, helped by productivity, supply chain efficiencies, and cost control.
• Aramark highlighted exceptionally strong commercial momentum, including a client retention rate above 98% and $1 billion of new client signings year to date, which management said is ahead of pace versus historical patterns.
• The company is entering the hyperscale AI data center market through its Nexus platform, and management said the initial multi-location engagement with a top global hyperscaler could become the largest account in Aramark’s portfolio once fully ramped.
• Management raised full-year organic revenue guidance to the high end of its 7%–9% range and reaffirmed AOI and EPS targets, while also noting that the hyperscaler contract is not yet included in guidance because ramp timing remains uncertain.

Aramark Trading Up 8.6%

Shares of Aramark stock traded up $3.83 during trading hours on Tuesday, reaching $48.39. The stock had a trading volume of 962,685 shares, compared to its average volume of 2,885,172. The firm has a market capitalization of $12.72 billion, a price-to-earnings ratio of 40.75, a P/E/G ratio of 1.10 and a beta of 1.08. Aramark has a 1 year low of $35.07 and a 1 year high of $51.18. The company has a current ratio of 1.27, a quick ratio of 1.13 and a debt-to-equity ratio of 1.94. The firm has a 50 day simple moving average of $42.55 and a two-hundred day simple moving average of $39.87.

Aramark Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, June 3rd. Investors of record on Wednesday, May 20th will be given a $0.12 dividend. This represents a $0.48 annualized dividend and a dividend yield of 1.0%. The ex-dividend date of this dividend is Wednesday, May 20th. Aramark's dividend payout ratio (DPR) is 40.34%.

Institutional Trading of Aramark

Several large investors have recently added to or reduced their stakes in the stock. Caitong International Asset Management Co. Ltd increased its stake in Aramark by 55.3% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 1,152 shares of the company's stock worth $42,000 after buying an additional 410 shares during the period. Cetera Investment Advisers lifted its stake in shares of Aramark by 7.4% in the second quarter. Cetera Investment Advisers now owns 8,294 shares of the company's stock worth $347,000 after acquiring an additional 573 shares in the last quarter. Vanguard Personalized Indexing Management LLC boosted its holdings in Aramark by 4.0% in the fourth quarter. Vanguard Personalized Indexing Management LLC now owns 18,711 shares of the company's stock valued at $690,000 after purchasing an additional 721 shares during the last quarter. Kestra Advisory Services LLC acquired a new stake in Aramark during the 4th quarter valued at approximately $32,000. Finally, Quarry LP purchased a new stake in Aramark during the 3rd quarter worth approximately $35,000.

Analyst Ratings Changes

Several research firms have recently issued reports on ARMK. Stifel Nicolaus lifted their price target on Aramark from $44.00 to $47.00 and gave the stock a "buy" rating in a research note on Wednesday, February 11th. Morgan Stanley set a $45.00 target price on shares of Aramark in a report on Tuesday, February 10th. Weiss Ratings restated a "hold (c)" rating on shares of Aramark in a research report on Friday, March 27th. Bank of America began coverage on shares of Aramark in a report on Tuesday, February 17th. They issued a "buy" rating and a $50.00 price target on the stock. Finally, Citigroup increased their price target on shares of Aramark from $49.00 to $51.00 and gave the company a "buy" rating in a research report on Thursday, February 12th. Eight equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $48.67.

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.

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