Facilities manager Aramark's Q2 revenue beats, helped by new business

Aramark

12/05/2026 11:39

Overview

U.S. food and facilities manager's fiscal Q2 revenue rose 15%, beating analyst expectations

Adjusted EPS for fiscal Q2 rose 40% year-over-year

Company repurchased $25 mln of stock and entered hyperscale AI data center market

Outlook

Aramark sees fiscal 2026 organic revenue growth at the high end of +7% to +9% range

Company expects fiscal 2026 adjusted operating income (AOI) growth of +12% to +17% and adjusted EPS growth of +20% to +25%

Aramark expects leverage ratio under 3x for fiscal 2026

Result Drivers

NET NEW BUSINESS - Growth led by broad-based net new business and base business expansion across sectors and geographies

CALENDAR SHIFT - Approximately 3% benefit to revenue and organic revenue growth, and 14% benefit to operating income, from the calendar shift

PRODUCTIVITY & SUPPLY CHAIN - Enhanced technology, productivity gains in food and labor, and supply chain efficiencies supported profitability

Company press release: ID:nBw7hj6Dca

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$4.91 bln
$4.75 bln (11 Analysts)
Q2 EPS
$0.38
Q2 Dividend
$0.12
Q2 Free Cash Flow
$305 mln
Q2 Operating income
$220 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 $48.00, about 7.7% above its May 11 closing price of $44.56

The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 16 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)