Aramark (ARMK) Q2 2026 earnings summary

Executive summary

• Q2 revenue rose 15% year-over-year to $4.91 billion, with organic revenue up 12%, driven by broad-based net new business, base business expansion, and record $1 billion in new client wins year-to-date.

• Client retention rate exceeded 98%, supporting strong momentum across all business segments and geographies.

• Operating income increased 26% to $220 million; adjusted operating income (AOI) up 24%.

• GAAP EPS grew 65% to $0.38; adjusted EPS up 40% to $0.49.

• Launched Aramark Nexus, entering the hyperscale AI data center market with a major new client.

Financial highlights

• Consolidated revenue: $4.91 billion (+15% year-over-year); organic revenue up 12%.

• Operating income: $220 million (+26%); AOI: $258 million (+24%).

• Net income attributable to stockholders: $102.1 million for the quarter; $198.6 million for six months.

• Free cash flow: $305 million (+116% year-over-year); net cash from operating activities: $400 million (+56%).

• Adjusted operating income margin: 5.3%–5.4% for the quarter, up from 4.7% last year.

Outlook and guidance

• Fiscal 2026 organic revenue growth outlook raised to the high end of 7%-9% range.

• AOI growth reaffirmed at 12%-17%; adjusted EPS growth expected between 20%-25%.

• Leverage ratio targeted under 3x by fiscal year-end.

• Guidance does not yet include the impact of the hyperscale data center contract, which is set to begin service this year.

• Management expects continued revenue and operating income growth, supported by base business expansion and new business wins.