Aramark (NYSE:ARMK) delivered stronger-than-expected first-quarter fiscal 2026 results on Thursday, as the food services group posted solid revenue growth despite the impact of a calendar-related headwind.
Shares in the company rose 1.98% in after-hours trading following the earnings release.
Aramark reported adjusted earnings per share of $0.51 for the quarter, edging past analysts’ expectations of $0.50. Revenue came in at $4.83 billion, topping the consensus estimate of $4.74 billion and representing a 6% increase year over year. On an organic basis, revenue grew 5% compared with the same period last year.
The company said results were affected by a calendar shift linked to a 53rd week in fiscal 2025, which weighed on reported growth. Excluding this effect, organic revenue growth would have been closer to 8%, according to management.
“We’re very pleased with the strong results delivered in the quarter, which included extraordinary client retention while continuing our momentum with significant new business,” said John Zillmer, Aramark’s chief executive officer.
Within its Food and Support Services (FSS) United States division, revenue rose 2% to $3.36 billion, supported by new client wins and increased activity across its base business, particularly in the Business & Industry, Healthcare and Sports segments. FSS International revenue surged 17% to $1.47 billion, reflecting broad-based growth across all regions.
Adjusted operating income increased 1% to $263 million. Aramark reaffirmed its full-year fiscal 2026 guidance, forecasting organic revenue growth of 7% to 9% and adjusted EPS growth of 20% to 25%.
During the quarter, the company repurchased $30 million of its common shares and refinanced $2.4 billion of its 2030 Term Loan B, lowering the interest rate by 25 basis points.
Aramark also said it continues to outperform its net new business targets, which aim for 4% to 5% of prior-year revenue, supported by strong client retention across both U.S. and international operations.