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

Aramark (NYSE:ARMK) issued its quarterly earnings results on Tuesday. The company reported $0.51 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.50 by $0.01, FiscalAI reports. The business had revenue of $4.83 billion during the quarter, compared to analyst estimates of $4.76 billion. Aramark had a net margin of 1.76% and a return on equity of 16.39%. The business’s revenue was up 6.1% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.51 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 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 Up 5.4%

Aramark stock opened at $40.90 on Wednesday. The company has a debt-to-equity ratio of 1.71, a quick ratio of 0.88 and a current ratio of 0.99. Aramark has a one year low of $29.92 and a one year high of $44.49. The company has a 50-day simple moving average of $38.20 and a 200-day simple moving average of $38.64. The firm has a market capitalization of $10.75 billion, a P/E ratio of 33.52, a P/E/G ratio of 1.26 and a beta of 1.09.

Aramark Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, March 4th. Stockholders of record on Wednesday, February 18th will be given a dividend of $0.12 per share. The ex-dividend date is Wednesday, February 18th. This represents a $0.48 annualized dividend and a dividend yield of 1.2%. Aramark’s dividend payout ratio is currently 39.34%.

More Aramark News

Here are the key news stories impacting Aramark this week:

• Positive Sentiment: Q1 results topped consensus: EPS of $0.51 beat estimates by $0.01 and revenue of $4.83B beat forecasts, with revenue up ~6.1% year-over-year — a clear near-term fundamental driver for the stock. Aramark Reports First Quarter Earnings
• Positive Sentiment: Management highlighted strong organic revenue growth, significant new business wins and record client retention — factors that should support revenue visibility and investor confidence. Q1 2026 Earnings Call Highlights
• Positive Sentiment: Company reaffirmed FY2026 guidance (EPS range and revenue band), reducing uncertainty about the year and signaling management’s confidence in achieving targets. Aramark stock is up, what you need to know
• Neutral Sentiment: Full-year guidance is roughly in line with Street expectations (EPS guidance 2.18–2.28 vs. consensus ~2.21; revenue band overlaps consensus), so the reaffirmation is comforting but not broadly bullish on its own. Here’s What Key Metrics Tell Us About Aramark Q1 Earnings
• Negative Sentiment: The EPS beat was small (+$0.01) and EPS was flat year-over-year, which may temper enthusiasm if investors hoped for operating leverage or margin expansion. Aramark Surpasses Q1 Earnings and Revenue Estimates
• Negative Sentiment: Financials show leverage and tight near-term liquidity (debt-to-equity ~1.7, quick ratio <1), which raises risk if macro demand or margins weaken. Aramark Earnings Summary & Materials

Institutional Investors Weigh In On Aramark

Several large investors have recently made changes to their positions in the company. Ossiam grew its holdings in Aramark by 21,158.3% in the 3rd quarter. Ossiam now owns 79,081 shares of the company’s stock worth $3,037,000 after buying an additional 78,709 shares in the last quarter. BNP Paribas Financial Markets boosted its position in Aramark by 112.3% during the 3rd quarter. BNP Paribas Financial Markets now owns 52,222 shares of the company’s stock worth $2,005,000 after acquiring an additional 27,625 shares during the period. Mercer Global Advisors Inc. ADV grew its stake in shares of Aramark by 166.5% in the third quarter. Mercer Global Advisors Inc. ADV now owns 35,497 shares of the company’s stock worth $1,363,000 after purchasing an additional 22,178 shares in the last quarter. SummitTX Capital L.P. grew its stake in shares of Aramark by 63.1% in the third quarter. SummitTX Capital L.P. now owns 32,967 shares of the company’s stock worth $1,266,000 after purchasing an additional 12,758 shares in the last quarter. Finally, Creative Planning increased its holdings in shares of Aramark by 160.9% during the third quarter. Creative Planning now owns 25,879 shares of the company’s stock valued at $994,000 after purchasing an additional 15,961 shares during the period.

Wall Street Analysts Forecast Growth

Several brokerages have weighed in on ARMK. Robert W. Baird decreased their price objective on shares of Aramark from $47.00 to $46.00 and set an “outperform” rating for the company in a report on Tuesday, November 18th. Weiss Ratings reiterated a “hold (c)” rating on shares of Aramark in a research note on Monday, December 29th. UBS Group reaffirmed a “buy” rating on shares of Aramark in a report on Tuesday, January 6th. Morgan Stanley set a $45.00 target price on Aramark in a research report on Tuesday. Finally, Stifel Nicolaus set a $44.00 price target on Aramark in a research report on Monday, November 17th. Four investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $46.00.

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.