Results
YEAR-OVER-YEAR SUMMARY
4Revenue +9% ; Organic Revenue +9%
Performance driven by broad-based net new business and base business momentum; Revenue growth would have increased approximately +11% without the calendar shift
5New client wins totaling more than $1.6 billion fiscal year to date, +51% higher than the comparable prior year period; Industry-leading client retention at record levels of approximately 98%
Operating Income +18%; Adjusted Operating Income (AOI) +13% 1
Operating Income and AOI growth would have increased approximately +29% and +21% 1 , respectively, without the calendar shift
Profitability growth led by strong revenue across the organization, supply chain efficiencies, and productivity gains from effective cost management
GAAP EPS +34% to $0.36; Adjusted EPS +29% 1 to $0.52
GAAP EPS and Adjusted EPS growth would have increased approximately +55% and +43% 1 , respectively, without the calendar shift
Management commentary
Results reflected successful execution of the Company's growth strategies
Strong Earnings and Cash Generation Further Enhanced Balance Sheet
Results
Net Cash Provided by Operating Activities +$41 million; Free Cash Flow +$42 million
Corporate events
Over $1.4 billion of cash availability at quarter-end; Proactively repaid $100 million of 2028 Term Loans following quarter-end
Launched Operations with Top Global Hyperscaler; Continued Expansion of Aramark Nexus ™
Began providing premium hospitality services at first Texas-based AI data center site with hyperscaler; Mobilization underway at second location and the Company anticipates additional sites to be awarded
Recently announced a multi-year engagement with a leading AI data center colocation provider to serve workforce communities across multiple locations; Extensive demand for Aramark Nexus ™ capabilities
Management commentary
"The Company delivered another impressive quarter of strong top and bottom-line results,” said John Zillmer, Aramark’s Chief Executive Officer.
“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.
Given the strong business trends across sectors and geographies, we’ve once again raised our Organic Revenue growth expectations for fiscal 2026.Guidance raised
Our performance is a testament to the dedication of our teams, whose unwavering commitment to serving our clients, delivering exceptional hospitality experiences, and performing at a high level every day has been instrumental in our success.”
Results
THIRD QUARTER RESULTS
2In the third quarter, consolidated revenue increased 9% year-over-year to $5.1 billion.
The favorable effect of currency translation increased revenue by approximately $33 million.
Organic Revenue, which excludes the effect of currency translation, was also higher by 9% compared to the same year-ago period.
Performance was driven by broad-based net new business and base business momentum across sectors and geographies.
The calendar shift from the 53rd week in the prior year reduced Revenue and Organic Revenue growth by an estimated 2%, primarily occurring in the Education sector within the FSS United States segment.
Revenue growth in the quarter would have increased approximately 11% without the calendar shift.
FSS United States revenue growth was led by 1) Sports, Leisure & Corrections primarily from higher per cap spending and fan attendance levels in Sports & Entertainment, which included FIFA World Cup matches and the NBA/NHL playoffs, along with an expanded client portfolio across the sector; 2) Business & Industry from sustained double-digit growth with the contribution from significant new business, high client retention rates, and continued base business performance; and 3) Healthcare as a result of both new business and base business expansion.
Revenue and Organic Revenue growth would have increased an estimated 10% without the calendar shift, primarily in the Education sector.
FSS International revenue growth was broad-based across all geographies as a result of continued base business strength and net new business performance—largely from Spain, Canada, the U.K., and Germany.
Revenue on a GAAP basis included the favorable effect of currency translation.
6Operating Income in the third quarter increased 18% compared to the prior year period to $216 million, and AOI grew 13% 1 to $261 million, representing an operating income margin increase of more than 30 basis points and an AOI margin increase of nearly 20 basis points 1 .
The quarter benefited from strong revenue levels, supply chain efficiencies, and productivity gains from effective cost management.
This favorable performance more than offset the calendar shift, which reduced Operating Income and AOI by an estimated 11% and 8%, respectively.
Operating income and AOI growth would have increased approximately 29% and 21% 1 , respectively, without the calendar shift—with operating income margin growth of nearly 65 basis points and AOI margin expansion of 50 basis points.
The effect of currency translation increased Operating Income by approximately $1 million.
Year-over-year profitability growth and margin expansion resulted from the following segment
FSS United States increased from higher base business and new business revenue levels, particularly in Sports, Leisure & Corrections, Business & Industry, and Healthcare, in addition to supply chain efficiencies and productivity gains from effective cost management.
8Operating Income and AOI would have increased an estimated 26% and 22%, respectively, without the calendar shift—with operating income margin growth of more than 40 basis points and AOI margin expansion of nearly 65 basis points.
FSS International benefited from base business and net new business expansion, along with strengthened supply chain economics.
Operating Income on a GAAP basis included the favorable effect of currency translation.
Corporate expenses increased primarily due to higher share-based compensation.
CASH FLOW AND CAPITAL STRUCTURE
Aramark reported a higher cash inflow in the third quarter compared to the prior year period, predominantly driven by stronger business performance and earnings growth.
Net cash provided by operating activities in the quarter grew $41 million and Free Cash Flow increased $42 million.
Consistent with the typical seasonality of the business, the Company expects to generate a large cash inflow in the fourth quarter, primarily from Collegiate Hospitality and Sports & Entertainment.
At quarter-end, the Company had more than $1.4 billion in cash availability.
Corporate events
Aramark proactively repaid approximately $100 million of 2028 Term Loans subsequent to quarter-end.
The Company remains committed to a leverage ratio below 3.0x by the end of fiscal 2026.Guidance reaffirmed
Capital return
Aramark also maintains an active share repurchase program and has repurchased more than 5 million shares since its inception for an aggregate purchase price of approximately $194 million.
DIVIDEND DECLARATION
Aramark's Board of Directors approved a quarterly dividend of $0.12 per share of common stock, as announced on August 5, 2026.
The dividend will be payable on September 9, 2026, to stockholders of record at the close of business on August 19, 2026.
BUSINESS UPDATE
Results
The Company reported another quarter of substantial growth in both revenue and profitability, with this momentum continuing in all business segments.
Management commentary
Late in the third quarter, Aramark began operations at its first Texas-based site supporting a top global hyperscaler and is currently scaling the service offerings.
The Company is mobilizing a second site for this client and anticipates supporting additional locations.
Aramark remains in active dialogue with other leading hyperscalers, reflecting strong demand for its integrated suite of capabilities.
Corporate events
Further extending the reach of Aramark Nexus, the Company recently announced a multi-year engagement with a leading AI data center colocation provider to deliver premium hospitality services to workforce communities across multiple locations, including in Wyoming and Texas.
Management commentary
As Aramark Nexus continues to expand in scale and geographic footprint, the Company believes that the business is uniquely positioned to help clients attract and retain skilled labor through differentiated hospitality solutions and premium amenities that enhance the employee experience and contribute to operational success.
Outlook
OUTLOOK
The Company provides its expectations for organic revenue growth, Adjusted Operating Income growth (constant currency), Adjusted Earnings per Share growth (constant currency), and Net Debt to Covenant Adjusted EBITDA ("Leverage Ratio") on a non-GAAP basis, and does not provide a reconciliation of such forward-looking non-GAAP measures to GAAP due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations, including adjustments that could be made for the effect of currency translation.
The fiscal 2026 outlook reflects management's current assumptions regarding numerous evolving factors that are difficult to accurately predict, including those discussed in the Risk Factors set forth in the Company's filings with the United States Securities and Exchange Commission.
1As a result of Aramark's strong financial performance throughout Fiscal 2026, the Company raised its full-year Organic Revenue growth Outlook.Guidance raised
In addition to the continued growth momentum across Aramark’s broader portfolio, this increase reflects the contribution from commencing operations with a top global hyperscaler as Aramark scales its premium hospitality services.
The Company reaffirmed its Outlook for AOI, Adjusted EPS, and Leverage Ratio with anticipated fourth quarter results consistent with Wall Street estimates.Guidance reaffirmed
Aramark expects AOI growth and margin expansion to accelerate in the fourth quarter, driven by its multiple operating levers and the early profitability contribution from Aramark Nexus, while mobilizing a record level of new business throughout the Company and adding growth resources as appropriate to further capitalize on the significant demand for Aramark Nexus.
Aramark currently anticipates its full-year performance for Fiscal 2026 as follows:
3Organic Revenue growth of +9% to +10%;
7Adjusted Operating Income (AOI) growth of +12% to +17% ;
Adjusted EPS growth of +20% to +25% ; and
Leverage Ratio under 3x
Previous Outlook for Organic Revenue growth was at the high end of +7% to +9%
Management commentary
“We’re extremely confident in our ability to continue driving strong, sustained growth,” Zillmer added.
“We believe that the opportunities before us—from the outperformance of our core business to the scaling of Aramark Nexus and our Global Supply Chain platform—position us well to realize the benefits of the significant value-creating actions underway.
Once again, I am thankful to our teams around the globe for embodying our culture and values, which remain the foundation of who we are as a Company.”
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