PHILADELPHIA, PA — Aramark (NYSE: ARMK) raised its fiscal 2026 organic revenue growth forecast to 9% to 10% after third-quarter sales climbed 9% to $5.1 billion and new contracts with artificial intelligence data center operators opened an additional avenue for expansion.
The Philadelphia-based food and facilities services company previously projected organic revenue growth at the high end of a 7% to 9% range.
New client wins exceeded $1.6 billion during the fiscal year to date, an increase of 51% from the comparable period a year earlier. Client retention reached approximately 98%, according to the company.
Third-quarter operating income increased 18% to $216 million, while adjusted operating income rose 13% to $261 million.
Earnings per share climbed 34% to 36 cents, while adjusted earnings increased 29% to 52 cents per share on a constant-currency basis.
The company attributed the gains to new business, growth within existing accounts, supply chain efficiencies and cost controls.
A calendar shift resulting from a 53rd week in fiscal 2025 reduced reported third-quarter revenue growth by an estimated two percentage points, primarily affecting its education business.
Without that timing effect, revenue would have increased approximately 11%, operating income would have climbed about 29%, and adjusted operating income would have risen approximately 21%, the company estimated.
The calendar shift also reduced earnings growth. Aramark estimated that earnings per share would have increased approximately 55%, while adjusted earnings would have risen about 43%, without the timing difference.
In the United States, sales benefited from higher spending and attendance at sporting events, including FIFA World Cup matches and NBA and NHL playoff games, as well as growth in business dining and health care accounts.
The business and industry segment recorded sustained double-digit growth, supported by new contracts and client retention.
International operations expanded across multiple markets, with Spain, Canada, the United Kingdom and Germany contributing to revenue growth. Currency translation added approximately $33 million to consolidated revenue and $1 million to operating income.
Aramark also began providing hospitality services at a Texas artificial intelligence data center operated by a global hyperscaler late in the quarter. A second location is being prepared, and the company expects additional sites.
Through its Aramark Nexus business, the company also secured a multiyear agreement with an AI data center colocation provider covering workforce communities across multiple locations, including sites in Wyoming and Texas.
Aramark indicated that the services are intended to help data center operators attract and retain skilled workers through hospitality offerings and workplace amenities.
“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,” Chief Executive Officer John Zillmer stated.
Cash generated from operating activities increased by $41 million during the quarter, while free cash flow rose by $42 million. The company ended the period with more than $1.4 billion in available cash.
After the quarter closed, Aramark repaid approximately $100 million of term loans due in 2028. It continues to target a leverage ratio below three times by the end of fiscal 2026.
Aramark has also repurchased more than 5 million shares for approximately $194 million since launching its share repurchase program.
The company maintained its full-year forecasts for adjusted operating income growth of 12% to 17% and adjusted earnings-per-share growth of 20% to 25%, both on a constant-currency basis.
Management expects profitability growth and margin expansion to accelerate in the fourth quarter as new contracts begin contributing and the Nexus business generates early earnings.
Aramark’s board approved a quarterly dividend of 12 cents per share, payable September 9, 2026, to shareholders of record as of August 19.
Support the local news that supports Chester County. MyChesCo delivers reliable, fact-based reporting and essential community resources—free for everyone. If you value that, click here to become a patron today.