Aramark (NYSE:ARMK) Issues Earnings Results

by · The Cerbat Gem

Aramark (NYSE:ARMK – Get Free Report) posted its quarterly earnings data on Tuesday. The company reported $0.49 EPS for the quarter, beating analysts’ consensus estimates of $0.47 by $0.02, FiscalAI reports. Aramark had a net margin of 1.84% and a return on equity of 17.05%. The firm had revenue of $4.91 billion for the quarter, compared to the consensus estimate of $4.75 billion. During the same period in the prior year, the firm posted $0.35 EPS. The firm’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 Stock Up 4.9%

NYSE:ARMK opened at $50.77 on Thursday. The firm has a market capitalization of $13.35 billion, a PE ratio of 37.89, a price-to-earnings-growth ratio of 1.18 and a beta of 1.08. The stock has a 50 day moving average of $42.87 and a 200-day moving average of $40.01. Aramark has a 52 week low of $35.07 and a 52 week high of $51.17. The company has a current ratio of 1.21, a quick ratio of 1.13 and a debt-to-equity ratio of 1.85.

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. The ex-dividend date of this dividend is Wednesday, May 20th. This represents a $0.48 annualized dividend and a dividend yield of 0.9%. Aramark’s dividend payout ratio is 40.34%.

Hedge Funds Weigh In On Aramark

Several institutional investors have recently made changes to their positions in ARMK. Caitong International Asset Management Co. Ltd acquired a new stake in shares of Aramark in the 3rd quarter worth about $28,000. Kestra Advisory Services LLC acquired a new stake in shares of Aramark in the 4th quarter worth about $32,000. Quarry LP acquired a new stake in shares of Aramark in the 3rd quarter worth about $35,000. Osterweis Capital Management Inc. acquired a new stake in shares of Aramark in the 2nd quarter worth about $40,000. Finally, Los Angeles Capital Management LLC acquired a new stake in shares of Aramark in the 4th quarter worth about $49,000.

Wall Street Analysts Forecast Growth

A number of research analysts have commented on the stock. Robert W. Baird increased their price objective on shares of Aramark from $50.00 to $58.00 and gave the company an “outperform” rating in a research note on Wednesday. The Goldman Sachs Group reiterated a “buy” rating and set a $51.00 price objective on shares of Aramark in a research note on Wednesday. Stifel Nicolaus increased their price objective on shares of Aramark from $47.00 to $54.00 and gave the company a “buy” rating in a research note on Wednesday. Oppenheimer increased their price objective on shares of Aramark from $43.00 to $50.00 and gave the company an “outperform” rating in a research note on Wednesday, March 25th. Finally, JPMorgan Chase & Co. increased their price objective on shares of Aramark from $49.00 to $55.00 and gave the company an “overweight” rating in a research note on Wednesday. Ten analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $53.36.

Read Our Latest Report on ARMK

Aramark News Summary

Here are the key news stories impacting Aramark this week:

  • Positive Sentiment: JPMorgan raised its price target on Aramark to $55 from $49 and kept an overweight rating, signaling continued confidence in the company’s growth and valuation. JPMorgan price target raise
  • Positive Sentiment: Truist lifted its target to $58 from $50 and reiterated a buy rating, implying further upside from recent levels. Truist price target raise
  • Positive Sentiment: Stifel increased its target to $54 from $47 and maintained a buy rating after Aramark’s earnings beat. Stifel price target raise
  • Positive Sentiment: Robert W. Baird also raised its target to $58 from $50 and kept an outperform rating, adding to the cluster of bullish analyst updates. Baird price target raise
  • Neutral Sentiment: Recent coverage highlighted Aramark’s move into the hyperscale AI data center market, which may be seen as a longer-term growth opportunity but is not yet a near-term earnings driver. Aramark forays into AI

Aramark Company Profile

(Get Free Report)

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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