Aramark's Q2 Revenue Jumps 15% to $4.907 Billion

By Greg Peters • Tuesday, May 12 11:19 • Permanent Link

Aramark’s second-quarter revenue rose 15% from a year earlier to $4.907 billion, as organic revenue increased 12%. The company said roughly 3 percentage points of that growth came from the calendar shift tied to the 53rd week in fiscal 2025.

Operating income climbed 26% to $220 million, while adjusted operating income increased 24% to $258 million. Aramark said the quarter benefited from higher revenue, productivity gains in food and labor, supply chain efficiencies, and above-unit cost management. The calendar shift added an estimated $25 million to profitability growth.

Earnings per share also moved sharply higher. GAAP EPS rose 65% to $0.38, and adjusted EPS increased 40% to $0.49. Aramark said the calendar shift accounted for about 30% of GAAP EPS growth and about 20% of adjusted EPS growth.

By segment, FSS United States revenue increased 12% to $3.430 billion, with organic revenue also up 12%. FSS International revenue rose 21% to $1.477 billion, with organic revenue up 13%. Operating income in FSS United States increased 27% to $193 million, while FSS International operating income rose 19% to $61 million.

Cash generation strengthened as well. Net cash provided by operating activities increased 56% to $400 million, and free cash flow more than doubled, rising 116% to $305 million. Aramark ended the quarter with more than $1.4 billion in cash availability.

During the quarter, the company repaid about $55 million of term loans due in 2030 and repurchased about $25 million of stock. Since the launch of its buyback program, Aramark has repurchased more than 5 million shares for about $194 million.

Commercial momentum remained strong. The company said client retention exceeded 98%, and new business wins reached a record $1 billion year to date. Aramark also launched Aramark Nexus, a new platform aimed at hyperscale AI data centers, and said a multi-year agreement with a top global hyperscaler is underway.

For fiscal 2026, Aramark said it now expects organic revenue growth at the high end of its prior 7% to 9% range, while keeping its outlook for adjusted operating income growth at 12% to 17%, adjusted EPS growth at 20% to 25%, and leverage below 3x. Today the company's shares have moved 7.99% to a price of $48.12. For more information, read the company's full 8-K submission here.

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