Aramark (ARMK) Q3 2026 Filing Summary
Business Context and Reporting Period
This Form 10-Q covers the quarterly period ended July 3, 2026, and the nine-month period ended July 3, 2026. Aramark is a leading global provider of food and facilities services operating in two reportable segments: Food and Support Services United States (FSS United States) and Food and Support Services International (FSS International). The company serves clients in education, healthcare, business & industry, and sports, leisure & corrections sectors across the U.S. and 15 other countries.
Key Financial Metrics
| Metric (in millions) | Q3 2026 (3 Months) | Q3 2025 (3 Months) | YTD 2026 (9 Months) | YTD 2025 (9 Months) |
|---|---|---|---|---|
| Revenue | $5,057.9 | $4,626.5 | $14,796.8 | $13,457.8 |
| Operating Income | $215.6 | $182.6 | $652.9 | $574.0 |
| Net Income (Aramark Stockholders) | $97.7 | $71.8 | $295.8 | $239.3 |
| Diluted EPS | $0.36 | $0.27 | $1.11 | $0.90 |
| Adjusted Operating Income | $296.1 | $256.7 | $882.1 | $778.3 |
| Cash & Equivalents | $499.4 | $639.1 | $499.4 | $639.1 |
| Total Debt (Long-Term + Current) | $6,129.8 | $5,405.9 | $6,129.8 | $5,405.9 |
| Operating Cash Flow (9 Months) | — | — | $(264.8) | $(254.5) |
Note: Operating cash flow for the nine months ended July 3, 2026, was negative due to working capital changes and contract payments, despite positive net income.
Material Changes vs. Prior Period
- Revenue Growth: Consolidated revenue increased 9.3% in Q3 and 9.9% year-to-date (YTD), driven by base business growth, net new business, and favorable foreign currency translation (0.7% and 1.4% respectively). Growth was partially offset by a calendar shift (53-week fiscal year in 2025 vs. 52-week in 2026) reducing operational service days.
- Profitability: Operating income rose 18.1% in Q3 and 13.7% YTD. Adjusted operating income increased 15.4% in Q3 and 13.3% YTD.
- Segment Performance:
- FSS United States: Revenue up 7.7% (Q3) and 7.1% (YTD). Strong growth in Business & Industry (+17.8% Q3) and Sports, Leisure & Corrections (+12.0% Q3). Education revenue declined 3.4% Q3 due to the calendar shift.
- FSS International: Revenue up 13.2% (Q3) and 17.0% (YTD), driven by growth in the U.K., Spain, Germany, and Canada, plus favorable FX translation.
- Costs: Cost of services provided increased 8.7% (Q3) and 9.7% (YTD), primarily due to revenue growth. Personnel costs rose due to business expansion but were partially offset by lower medical costs and severance charges.
- Debt Activity: The company refinanced $2.4 billion of U.S. Term B-8 Loans due 2030 with new Term B-10 Loans. It also repaid $100 million of Term B-9 loans and utilized a $625 million Receivables Facility.
Guidance, Outlook, and Risks
- Outlook: Management expects continued revenue growth from base business and net new business. The company is actively managing operating costs through supply chain initiatives and pricing strategies.
- Liquidity: As of July 3, 2026, Aramark held $499.4 million in cash and cash equivalents with $914.9 million available under its senior secured revolving credit facility. Management believes these resources are adequate for foreseeable needs.
- Dividends & Buybacks: A quarterly dividend of $0.12 per share was declared. The company repurchased 1.4 million shares for $53.6 million during the nine-month period under a $500 million authorization.
- Risks & Contingencies:
- Macroeconomic: Volatility from Middle East conflicts, tariffs, inflation, and interest rates.
- Legal: A putative class action lawsuit regarding the former Uniform segment (Vestis) remains pending; the motion to dismiss was denied in September 2025.
- Operational: Risks related to labor costs, unionization, food safety, and cybersecurity.
- Argentina: Continued impact of hyperinflation on operations in Argentina.
Investor Verification Checklist
- Working Capital Trends: Verify the drivers behind the negative operating cash flow of $(264.8) million YTD, specifically the timing of accounts payable and receivables.
- Calendar Shift Impact: Confirm the estimated $20 million negative impact on operating income due to the 53-week vs. 52-week fiscal year comparison.
- Debt Refinancing Terms: Review the specific interest rate margins and covenants of the new $2.4 billion Term B-10 Loans due 2030.
- Legal Exposure: Monitor the status of the Vestis class action lawsuit and potential liability exposure.
- Argentina Operations: Assess the ongoing financial impact of hyperinflation and currency remeasurement on the FSS International segment.