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

Aramark (NYSE:ARMK) posted its quarterly earnings data on Tuesday. The company reported $0.49 earnings per share (EPS) for the quarter, beating the consensus estimate 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 during the quarter, compared to analysts’ expectations of $4.75 billion. During the same period last year, the firm posted $0.35 earnings per share. The business’s revenue was up 14.7% 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:

• 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 7.4%

Shares of NYSE:ARMK traded up $3.31 during midday trading on Tuesday, reaching $47.87. The company had a trading volume of 2,065,102 shares, compared to its average volume of 2,883,766. The company has a fifty day simple moving average of $42.55 and a two-hundred day simple moving average of $39.87. The firm has a market cap of $12.58 billion, a price-to-earnings ratio of 40.28, a price-to-earnings-growth 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 debt-to-equity ratio of 1.94, a quick ratio of 1.13 and a current ratio of 1.27.

Aramark Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, June 3rd. Stockholders of record on Wednesday, May 20th will be issued a dividend of $0.12 per share. 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 is currently 40.34%.

Institutional Trading of Aramark

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

Analyst Upgrades and Downgrades

A number of equities analysts have issued reports on ARMK shares. Oppenheimer increased their price target on Aramark from $43.00 to $50.00 and gave the company an “outperform” rating in a research note on Wednesday, March 25th. Stifel Nicolaus upped their price objective on Aramark from $44.00 to $47.00 and gave the company a “buy” rating in a report on Wednesday, February 11th. Morgan Stanley set a $45.00 target price on Aramark in a research note on Tuesday, February 10th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Aramark in a report on Friday, March 27th. Finally, Robert W. Baird set a $50.00 price target on shares of Aramark in a research report on Wednesday, February 11th. Eight research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target 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.