Aramark (NYSE:ARMK) reported better-than-expected fiscal third-quarter 2026 results on Tuesday, supported by broad-based organic growth, strong new business wins and record client retention.
Adjusted earnings per share reached $0.52, beating the analyst consensus of $0.48 by $0.04. Revenue climbed 9% year on year to $5.1 billion, exceeding expectations of $4.92 billion and rising from $4.6 billion in the prior-year quarter.
Despite the earnings and revenue beats, Aramark shares were little changed in pre-market trading, slipping 0.18% following the announcement.
Organic growth supported by new business wins
Organic revenue increased 9% from a year earlier, reflecting momentum in the existing business alongside new contract wins across multiple sectors and geographic markets.
The comparison was affected by a calendar shift related to the 53rd week in fiscal 2025, which Aramark estimated reduced reported revenue growth by around two percentage points, primarily within Education. Excluding that effect, revenue growth would have been approximately 11%.
Fiscal year-to-date new client wins exceeded $1.6 billion, representing a 51% increase from the comparable period last year. Client retention remained at a record level of approximately 98%, providing additional support for the company’s revenue base.
Operating income rises as margins improve
Adjusted operating income increased 13% on a constant-currency basis to $261 million, while operating margin expanded by nearly 20 basis points.
“The Company delivered another impressive quarter of strong top and bottom-line results,” said CEO John Zillmer.
“We continue to build on the momentum across the portfolio, including industry-leading client retention, broad-based revenue growth in the U.S. and International, record levels of new client wins, and the continued expansion of Aramark Nexus.”
The combination of higher revenue, operating income growth and modest margin expansion indicates that Aramark continued to convert its commercial momentum into improved operating performance during the quarter.
U.S. and international businesses deliver growth
Food and Support Services United States generated revenue of $3.5 billion, an increase of 8% year on year. Growth was led by Sports, Leisure & Corrections, Business & Industry, and Healthcare.
Food and Support Services International performed even more strongly, with revenue advancing 13% to $1.6 billion. Aramark reported broad-based growth across Spain, Canada, the U.K. and Germany.
The geographic spread of the gains reduces reliance on any single market and supports management’s view that growth momentum is extending across the portfolio.
Aramark raises fiscal 2026 revenue outlook
Following the third-quarter performance, Aramark increased its fiscal 2026 organic revenue growth forecast to between 9% and 10%, compared with its previous range of 7% to 9%.
The company maintained its outlook for adjusted operating income growth of 12% to 17% and adjusted EPS growth of 20% to 25%, both measured on a constant-currency basis. The midpoint of the EPS growth forecast remains aligned with Wall Street expectations.
For investors, the raised revenue outlook is a key takeaway from the quarter. Strong new business wins, approximately 98% client retention and growth across both U.S. and international operations provide visibility into the company’s top-line momentum, while the reaffirmed profit guidance puts the focus on whether Aramark can continue expanding earnings and margins as revenue grows.
Aramark stock price
