Aramark (NYSE:ARMK) Announces Quarterly Earnings Results, Beats Expectations By $0.01 EPS

Aramark (NYSE:ARMK) posted its quarterly earnings data on Tuesday. The company reported $0.51 EPS for the quarter, topping the consensus estimate of $0.50 by $0.01, FiscalAI reports. The company had revenue of $4.83 billion during the quarter, compared to analyst estimates of $4.76 billion. Aramark had a return on equity of 16.15% and a net margin of 1.69%.Aramark’s quarterly revenue was up 6.1% on a year-over-year basis. During the same period in the previous year, the business earned $0.51 EPS. 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 top-line momentum — Q1 organic revenue rose 5% to $4.8B (would be roughly +8% excluding the 53rd‑week calendar shift) and International organic revenue grew ~13%, supporting confidence in the 4%–5% net‑new target.
• Management highlighted unusually high client retention and several large enterprise wins — including Penn Medicine, RWJBarnabas Health, Alabama DOC, university wins and mining/sports contracts — that should accelerate onboarding and revenue ramp.
• Profitability and guidance remain solid — adjusted operating income was $263M (up 1% cc; ≈+11% ex-calendar shift), GAAP EPS $0.36 / adjusted EPS $0.51, and the company reaffirmed full‑year targets of 7%–9% organic revenue growth, AOI +12%–17%, adj EPS +20%–25%, and leverage below 3x.
• Cash and capital were mixed — a seasonal Q1 cash outflow and higher working capital/CapEx tied to new wins increased cash use, while the company bought back $30M of shares and repriced $2.4B of 2030 term loans to lower interest costs.
• A timing headwind from the 53rd‑week calendar shift reduced Q1 revenue by about $125M (~3%) and AOI by ~$25M; inflation (food ~3%, with beef pressure) and mobilization/startup costs on some new international contracts remain risks.

Aramark Stock Performance

Aramark stock opened at $42.15 on Thursday. The firm has a 50 day simple moving average of $38.30 and a 200-day simple moving average of $38.66. The stock has a market cap of $11.08 billion, a price-to-earnings ratio of 35.42, a price-to-earnings-growth ratio of 1.33 and a beta of 1.09. The company has a debt-to-equity ratio of 1.94, a current ratio of 1.27 and a quick ratio of 0.88. Aramark has a 1-year low of $29.92 and a 1-year high of $44.49.

Aramark Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, March 4th. Shareholders of record on Wednesday, February 18th will be issued a $0.12 dividend. This represents a $0.48 annualized dividend and a yield of 1.1%. The ex-dividend date is Wednesday, February 18th. Aramark’s payout ratio is presently 39.34%.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the business. AQR Capital Management LLC increased its stake in Aramark by 281.1% during the third quarter. AQR Capital Management LLC now owns 3,367,964 shares of the company’s stock worth $129,296,000 after acquiring an additional 2,484,319 shares during the last quarter. Bank of America Corp DE grew its holdings in shares of Aramark by 76.0% during the 3rd quarter. Bank of America Corp DE now owns 2,487,816 shares of the company’s stock worth $95,532,000 after purchasing an additional 1,074,609 shares during the period. Invesco Ltd. grew its holdings in shares of Aramark by 176.8% during the 3rd quarter. Invesco Ltd. now owns 1,878,371 shares of the company’s stock worth $72,129,000 after purchasing an additional 1,199,729 shares during the period. UBS Group AG increased its position in shares of Aramark by 60.0% during the 3rd quarter. UBS Group AG now owns 1,358,172 shares of the company’s stock worth $52,154,000 after purchasing an additional 509,242 shares during the last quarter. Finally, Nuveen LLC raised its holdings in Aramark by 2.6% in the 4th quarter. Nuveen LLC now owns 1,163,487 shares of the company’s stock valued at $42,886,000 after buying an additional 29,782 shares during the period.

Wall Street Analyst Weigh In

A number of research analysts have weighed in on ARMK shares. Robert W. Baird set a $50.00 price objective on Aramark in a report on Wednesday. UBS Group set a $47.00 price target on shares of Aramark and gave the stock a “buy” rating in a research note on Wednesday. Stifel Nicolaus boosted their price target on shares of Aramark from $44.00 to $47.00 and gave the stock a “buy” rating in a research report on Wednesday. Morgan Stanley set a $45.00 price objective on shares of Aramark in a report on Tuesday. Finally, Citigroup reissued a “buy” rating on shares of Aramark in a research note on Thursday. Five analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $47.50.

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.