Aramark (ARMK) Q3 2026 earnings summary

Executive summary

• Revenue for the quarter rose 9%–9.3% year-over-year to $5.06–$5.1 billion, driven by base business growth, net new business, and record client retention of approximately 98%.

• Operating income increased 18% to $216 million, with adjusted operating income (AOI) up 13%; both would have been higher excluding the calendar shift.

• New client wins exceeded $1.6 billion fiscal year-to-date, up 51% from the prior year.

• Profitability growth was supported by supply chain efficiencies, productivity gains, and cost management.

• Launched and expanded Nexus operations, including contracts with a top global hyperscaler and a leading AI data center colocation provider.

Financial highlights

• Organic revenue grew 9% to $5.03–$5.06 billion; would have been 11% without the calendar shift.

• GAAP EPS was $0.36 (up 34%), adjusted EPS $0.52 (up 29%), with stronger growth excluding calendar shift.

• Net income attributable to stockholders rose 36% to $97.7 million for the quarter.

• Net cash from operating activities grew $41 million; free cash flow increased by $42 million.

• Cost of services and depreciation rose due to business growth and acquisitions.

Outlook and guidance

• Raised full-year organic revenue growth outlook to 9%–10% (previously high end of 7%–9%).

• Reaffirmed AOI growth guidance of 12%–17% and adjusted EPS growth of 20%–25%.

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

• Q4 expected to see accelerated AOI growth and margin expansion, driven by new business and Nexus contributions.

• Management expects continued macroeconomic volatility but has not experienced material impacts to date.