0001584509-26-000085
SEC filingAramark reported strong Q2 FY2026 results with revenue up 15% and adjusted EPS up 40%, driven by broad-based growth and new business wins.
Aramark delivered a strong second quarter, with consolidated revenue rising 15% to $4.9 billion, driven by 12% organic growth. The FSS United States segment grew 12% organically, led by Sports, Leisure & Corrections (benefiting from MLB Opening Day and NCAA tournament), Business & Industry (sustained double-digit growth, high retention, and elevated catering), and Healthcare (new business). FSS International grew 13% organically, with double-digit growth in Europe and Canada and high-single-digit growth in Emerging Markets. The calendar shift from the 53rd week in fiscal 2025 contributed approximately 3% to revenue growth.
Operating income rose 26% to $220 million, while adjusted operating income (AOI) increased 24% to $258 million, reflecting higher revenue, productivity gains from enhanced technology, supply chain efficiencies, and effective cost management. The calendar shift benefited profitability by an estimated $25 million. GAAP EPS surged 65% to $0.38, and adjusted EPS grew 40% to $0.49, with the calendar shift contributing about 30% and 20% to those growth rates, respectively.
Cash flow was robust: operating cash flow of $400 million (up 56%) and free cash flow of $305 million (up 116%). The company proactively repaid $55 million of term loans and repurchased $25 million of stock. Aramark also announced a quarterly dividend of $0.12 per share.
Management highlighted record new business wins of $1 billion year-to-date and a client retention rate exceeding 98%. The company launched Aramark Nexus, a platform for hyperscale AI data centers, and secured a multi-year agreement with a top global hyperscaler, which is expected to become the largest client in the portfolio. This new business is not yet reflected in the fiscal 2026 outlook.
Guidance was updated: organic revenue growth is now expected at the high end of the previously stated +7% to +9% range. AOI growth is reaffirmed at +12% to +17%, adjusted EPS growth at +20% to +25%, and leverage ratio under 3x, all on a constant currency basis. The company expects accelerated AOI and margin expansion in the second half of the fiscal year.