Aramark Q3 revenue beats on strong new business wins, client retention

Aramark

11/08/2026 11:42

Overview
U.S. food and facilities manager's fiscal Q3 revenue rose 9%, beating analyst expectations
Adjusted EPS for fiscal Q3 climbed 29%, beating analyst expectations
Company raised full-year organic revenue growth outlook after strong new business wins

Outlook
Aramark raises full-year organic revenue growth outlook to 9%-10% from 7%-9%
Company reaffirms full-year AOI growth outlook of 12%-17% and adjusted EPS growth of 20%-25%
Aramark expects leverage ratio to remain below 3x by end of fiscal 2026

Result Drivers
NEW BUSINESS MOMENTUM - Co said broad-based net new business and base business momentum across sectors and geographies drove revenue growth
CLIENT WINS AND RETENTION - new client wins and industry-leading client retention at approximately 98% contributed to results
COST MANAGEMENT AND SUPPLY CHAIN - Profitability growth led by strong revenue, supply chain efficiencies, and productivity gains from effective cost management

Company press release: ID:nBwqj73Qa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$5.10 bln
$4.94 bln (11 Analysts)
Q3 Adjusted EPS
Beat
$0.52
$0.49 (12 Analysts)
Q3 EPS
 
$0.36
 
Q3 Dividend
 
$0.12
 
Q3 Free Cash Flow
 
$8.7 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "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 $63.00, about 13.1% above its August 10 closing price of $55.71
The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 19 three months ago

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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.)