Aramark (NYSE:ARMK) shares surged Tuesday after the company reported fiscal second-quarter results that topped Wall Street expectations, fueled by broad-based business growth across regions and sectors. The company also pointed to growing momentum in the hyperscale AI data center market and reaffirmed its full-year outlook.
Aramark Revenue Growth Accelerates
Aramark reported adjusted earnings of 49 cents per share, beating analysts’ consensus estimate of 47 cents per share. Revenue rose 15% year over year to $4.91 billion, ahead of the Street estimate of $4.76 billion. The company drove growth through net new business wins and expansion across its base business portfolio.
The company said foreign currency translation added about $101 million to quarterly revenue.
Food and Support Services United States revenue increased 12% from a year earlier. Food and Support Services International revenue climbed 21%.
CEO John Zillmer said the company is gaining traction in the hyperscale AI data center market through the launch of Aramark Nexus.
“We’re excited about our entry into the hyperscale AI data center market with the launch of Aramark Nexus where we bring proven expertise in highly complex operations and an established competitive advantage,” Zillmer said.
“As we execute on our new multi-year engagement with a top global hyperscaler, this client is expected to become the largest in our portfolio. We believe there is substantial growth potential with this client and other hyperscalers, combined with the existing sales momentum occurring throughout our broader portfolio.”
Cash Flow Improves, Dividend Declared
Aramark reported net cash provided by operating activities of $400 million in the quarter, up 56% from the prior-year period.
Aramark’s board approved a quarterly dividend of 12 cents per share, previously announced May 6. The dividend is scheduled to be paid June 3.
Aramark Outlook Reaffirmed
Aramark reaffirmed fiscal 2026 adjusted earnings guidance of $2.18 to $2.28 per share. Analysts are estimating earnings of $2.22 per share.
The company said it expects organic revenue growth to land at the high end of its previously projected 7% to 9% range. Adjusted operating income growth is still expected to increase between 12% and 17% for the year.
ARMK Price Action: Aramark shares were up 8.73% at $48.45 at the time of publication on Tuesday. The stock is trading at a new 52-week high, according to Benzinga Pro data.
Photo by Jonathan Weiss via Shutterstock
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