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

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

Shares of NYSE:ARMK traded up $3.83 on Tuesday, hitting $48.39. The company’s stock had a trading volume of 962,685 shares, compared to its average volume of 2,885,172. The company has a market capitalization of $12.72 billion, a price-to-earnings ratio of 40.75, a price-to-earnings-growth ratio of 1.10 and a beta of 1.08. 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 has a 12 month low of $35.07 and a 12 month high of $51.18. The stock’s 50-day moving average is $42.55 and its two-hundred day moving average is $39.87.

Aramark Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, June 3rd. Stockholders of record on Wednesday, May 20th will be paid a $0.12 dividend. The ex-dividend date of this dividend is Wednesday, May 20th. This represents a $0.48 annualized dividend and a dividend yield of 1.0%. Aramark’s dividend payout ratio is presently 40.34%.

Analyst Upgrades and Downgrades

ARMK has been the subject of a number of research reports. Bank of America initiated coverage on shares of Aramark in a report on Tuesday, February 17th. They issued a “buy” rating and a $50.00 price objective for the company. Robert W. Baird set a $50.00 price target on shares of Aramark in a research report on Wednesday, February 11th. Morgan Stanley set a $45.00 price target on shares of Aramark in a report on Tuesday, February 10th. Stifel Nicolaus increased their price objective on shares of Aramark from $44.00 to $47.00 and gave the stock a “buy” rating in a research note on Wednesday, February 11th. Finally, Citigroup raised their target price on shares of Aramark from $49.00 to $51.00 and gave the stock a “buy” rating in a report on Thursday, February 12th. Eight research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $48.67.

Institutional Investors Weigh In On Aramark

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. AQR Capital Management LLC raised its holdings in shares of Aramark by 163.1% in the 4th quarter. AQR Capital Management LLC now owns 8,860,010 shares of the company’s stock worth $326,580,000 after purchasing an additional 5,492,046 shares in the last quarter. Pinebridge Investments LLC bought a new position in shares of Aramark in the fourth quarter valued at $97,780,000. J. Goldman & Co LP acquired a new stake in shares of Aramark during the 4th quarter valued at $55,809,000. PointState Capital LP lifted its position in shares of Aramark by 45.5% during the 4th quarter. PointState Capital LP now owns 4,737,646 shares of the company’s stock valued at $174,630,000 after acquiring an additional 1,481,978 shares during the last quarter. Finally, Invesco Ltd. boosted its stake 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 acquiring an additional 1,199,729 shares in the last quarter.

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.