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

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

Shares of ARMK stock opened at $40.90 on Wednesday. The stock has a 50-day simple moving average of $38.20 and a 200 day simple moving average of $38.64. The stock 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 has a fifty-two week low of $29.92 and a fifty-two week high of $44.49. The company has a quick ratio of 0.88, a current ratio of 0.99 and a debt-to-equity ratio of 1.71.

Aramark Announces Dividend

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

Trending Headlines about Aramark

Here are the key news stories impacting Aramark this week:

• Positive Sentiment: Q1 results: Revenue of $4.83B beat consensus (~$4.76B) and EPS of $0.51 met estimates; revenue was up 6.1% year-over-year, signaling continued recovery and growth. Aramark Reports First Quarter Earnings
• Positive Sentiment: Operational momentum: Management cited strong organic revenue growth, significant new-business wins and record client retention on the call — key drivers investors view as sustainable revenue levers. Aramark (ARMK) Q1 2026 Earnings Call Highlights: Strong Organic Revenue Growth Amid Calendar …
• Positive Sentiment: Guidance reaffirmed: Management left FY2026 EPS guidance at $2.18–$2.28 and revenue guidance around the $19.6–$20.0B range, keeping full-year targets intact and removing near-term visibility concerns. Aramark (ARMK) stock is up, what you need to know
• Neutral Sentiment: Analyst reaction & detail: Coverage (earnings transcripts and slide deck) gives investors extra transparency into contract wins and margin drivers; transcripts/slides are available for deeper review but may already be priced in. Aramark (ARMK) Q1 2026 Earnings Call Transcript
• Negative Sentiment: Profitability & leverage: Net margin remains slim (~1.8%) and debt-to-equity is elevated (~1.7). Those structural issues and a relatively high P/E (~33.5) leave less margin for disappointment and could cap multiple expansion. Aramark earnings / MarketBeat summary

Hedge Funds Weigh In On Aramark

Several hedge funds have recently made changes to their positions in ARMK. Goldman Sachs Group Inc. boosted its holdings in Aramark by 38.2% during the first quarter. Goldman Sachs Group Inc. now owns 489,646 shares of the company’s stock worth $16,903,000 after buying an additional 135,224 shares in the last quarter. Creative Planning boosted its stake in shares of Aramark by 36.0% during the 2nd quarter. Creative Planning now owns 9,918 shares of the company’s stock worth $415,000 after acquiring an additional 2,625 shares in the last quarter. Cetera Investment Advisers grew its holdings in shares of Aramark by 7.4% in the 2nd quarter. Cetera Investment Advisers now owns 8,294 shares of the company’s stock worth $347,000 after acquiring an additional 573 shares during the last quarter. Arrowstreet Capital Limited Partnership acquired a new stake in shares of Aramark during the second quarter worth $640,000. Finally, Cerity Partners LLC lifted its holdings in shares of Aramark by 61.5% during the second quarter. Cerity Partners LLC now owns 16,097 shares of the company’s stock valued at $674,000 after purchasing an additional 6,127 shares during the last quarter.

Analyst Upgrades and Downgrades

Several brokerages have recently commented on ARMK. Citigroup increased their price target on shares of Aramark from $46.50 to $49.00 and gave the stock a “buy” rating in a research report on Wednesday, November 19th. UBS Group reaffirmed a “buy” rating on shares of Aramark in a report on Tuesday, January 6th. Stifel Nicolaus set a $44.00 price objective on Aramark in a research report on Monday, November 17th. Robert W. Baird lowered their price target on shares of Aramark from $47.00 to $46.00 and set an “outperform” rating for the company in a research report on Tuesday, November 18th. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of Aramark in a report on Monday, December 29th. Four research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $46.00.

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.