Aramark Q1 revenue, profit beat expectations

Aramark

10/02/2026 11:39

Overview

Food services provider's Q1 revenue grew 6%, beating analyst expectations

Adjusted EPS for Q1 beat analyst expectations

Company repurchased $30 mln of stock and repriced $2.4 bln term loans

Outlook

Aramark expects fiscal 2026 revenue between $19.55 bln and $19.95 bln

Company anticipates adjusted EPS growth of 20% to 25% in fiscal 2026

Aramark aims to reduce leverage ratio to under 3x by end of fiscal 2026

Result Drivers

CALENDAR SHIFT IMPACT - Revenue, operating income, and EPS growth were reduced by a calendar shift from the 53rd week in fiscal 2025

BASE BUSINESS EXPANSION - Revenue growth driven by base business expansion and net new business

TECHNOLOGY AND EFFICIENCIES - Profitability benefited from higher revenue levels, supply chain efficiencies, and organizational cost discipline

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
$4.80 bln
$4.74 bln (10 Analysts)
Q1 Adjusted EPS
Beat
$0.51
$0.50 (11 Analysts)
Q1 EPS
$0.36
Q1 Dividend
$0.12
Q1 Operating income
$218 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the restaurants & bars peer group is "buy"

Wall Street's median 12-month price target for Aramark is $45.00, about 16% above its February 9 closing price of $38.80

The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 17 three months ago

Press Release: ID:nBw8B7rTga

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)