NEW YORK, August 11, 2026, 11:34 EDT
- Aramark increased its fiscal 2026 organic revenue growth outlook to a range of 9%-10%.
- Quarterly revenue growth, when adjusted for the calendar, reached approximately 11%, compared with the 9% that was reported.
- Adjusted EPS surpassed expectations by 7.2%, with shares rising 9.9%.
Shares of Aramark NYSE:ARMK hit an all-time high on Tuesday after posting quarterly earnings that exceeded expectations and providing an improved sales forecast. At 11:09 a.m. EDT, the stock was up 9.87% at $61.21. The Associated Press separately noted a 9.7% rise near 11 a.m.
The food and facilities operator increased its fiscal 2026 organic revenue growth forecast to a range of 9%-10%, up from its earlier expectation at the upper end of 7%-9%.
The headline does not fully capture the speed. A timing change in the calendar reduced third-quarter growth by around two percentage points. Excluding this, management says revenue increased by approximately 11%.
| Fiscal Q3 2026 | Actual | Consensus | Year earlier |
|---|---|---|---|
| Revenue | $5.058 billion | $4.94 billion | $4.626 billion |
| Adjusted EPS | $0.52 | $0.48 | $0.40 |
| GAAP EPS | $0.36 | Not cited | $0.27 |
| Operating income | $216 million | Not cited | $183 million |
| Adjusted operating income | $261 million | Not cited | $230 million |
Revenue surpassed consensus by 2.36%, with adjusted EPS topping forecasts by 7.22%. Figures for actual and previous year are sourced from Aramark. Consensus figures are from Google Finance.
The calendar bridge gives a clearer picture than the beat, highlighting quicker growth in sales, profit and earnings. The most significant impact appeared at the bottom line.
| Year-over-year growth | Reported | Without calendar shift | Difference |
|---|---|---|---|
| Revenue | 9% | Roughly 11% | +2 points |
| Operating income | 18% | Roughly 29% | +11 points |
| Adjusted operating income | 13% | Roughly 21% | +8 points |
| GAAP EPS | 34% | Roughly 55% | +21 points |
| Adjusted EPS | 29% | Roughly 43% | +14 points |
Aramark reported individual no-shift estimates in its announcement. Growth for adjusted operating income and adjusted EPS is calculated at constant currency. The numbers represent management’s estimates rather than updated results.
Chief Executive John Zillmer said, “The Company delivered another impressive quarter of strong top and bottom-line results.” New client wins reached more than $1.6 billion so far this fiscal year, representing a 51% increase compared to the same period last year. Aramark
Client retention remained close to an all-time high of 98%. This is significant as net wins can grow more rapidly with fewer contracts departing. It also eases the workload for sales teams.
| Operating segment | Q3 revenue | Organic growth | Operating income | Adjusted operating-income growth |
|---|---|---|---|---|
| FSS United States | $3.496 billion | 8% | $182 million | 11% |
| FSS International | $1.562 billion | 11% | $69 million | 24% |
| Company total | $5.058 billion | 9% | $216 million | 13% |
The international division delivered the highest adjusted profit increase. In the U.S., revenue benefited from greater sports crowds, increased fan expenditures and additional business contracts. The FIFA World Cup, along with NBA and NHL playoffs, contributed to results.
A fresh area of growth is taking shape. Aramark has started operations at its initial Texas location for a major global hyperscaler. A second location is now being set up, and management anticipates further contract wins.
The company secured a multi-year data center colocation contract with a client in Wyoming and Texas. Its Nexus platform provides food, accommodation and workforce support for AI facilities. The company did not reveal contract revenue.
| Fiscal 2026 outlook | Current | Previous | Status |
|---|---|---|---|
| Organic revenue growth | 9%-10% | High end of 7%-9% | Upgraded |
| Adjusted operating-income growth | 12%-17% | 12%-17% | Confirmed |
| Adjusted EPS growth | 20%-25% | 20%-25% | Confirmed |
| Leverage ratio | Below 3.0x | Below 3.0x | Confirmed |
The sales increase reflects initial projects with the hyperscaler. Profit forecast remains unchanged. Aramark projects faster margin expansion in the fourth quarter as Nexus begins to add to earnings.
Cash flow strengthened as well. Free cash flow was positive for the quarter, and both net debt and leverage decreased. Following the quarter’s end, Aramark repaid an additional $100 million in term loans.
| Cash and leverage | Current period | Prior-year period | Change |
|---|---|---|---|
| Quarterly operating cash flow | $117.2 million | $76.7 million | +$40.5 million |
| Quarterly free cash flow | $8.7 million | -$33.6 million | +$42.2 million |
| Net debt | $5.630 billion | $5.750 billion | -$119 million |
| Net debt to covenant EBITDA | 3.5x | 4.0x | -0.5x |
The cash numbers reflect the three months to July 3. Net debt and leverage are shown for the most recent trailing periods. Aramark maintains its goal of keeping leverage under 3.0x by the end of the fiscal year.
The surge has narrowed the previous valuation difference. At $61.21, the stock was just 3.27% under the $63.21 consensus target listed by Google Finance.
| Firm | Recommendation | Target | Change from $61.21 | Action date |
|---|---|---|---|---|
| Citi | Buy | $70.50 | +15.2% | June 22 |
| Truist Financial | Buy | $70.00 | +14.4% | July 27 |
| Goldman Sachs | Buy | $66.00 | +7.8% | August 10 |
| Bank of America | Buy | $65.00 | +6.2% | July 24 |
| Robert W. Baird | Buy | $63.00 | +2.9% | July 24 |
| Morgan Stanley | Hold | $55.00 | -10.1% | July 23 |
According to Google Finance, there are 12 Buy ratings, one Hold, and zero Sell recommendations. The majority of price targets were set before Tuesday’s report. The latest move came from Goldman Sachs, which issued a $66 target on Monday.
Risks: Delays can occur when launching new contracts, and mobilization expenses may be higher than anticipated. Margin pressure may result from client attrition, rising food costs and increased wages. While demand for Nexus is established, management has not disclosed figures for its revenue or contract terms.
“We’re extremely confident in our ability to continue driving strong, sustained growth,” Zillmer said. The challenge ahead is more demanding: fourth-quarter earnings need to confirm the sales outlook increase before analysts adjust targets, which are currently close to the market value. Aramark
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