Aramark · ARMK · FY2025 Q4 · Calendar Q4 2025
Aramark Maintains FY26 Outlook as New Wins Support Growth
The supplied analysis supports a constructive but conditional view: resilient demand, high client retention, large new wins, and operating efficiencies support growth and margin expansion, while execution timing, start-up costs, and medical expenses could temper the benefit.
Earnings scorecard
Reported versus consensusMarket reaction
prior-close to event-session closeAsk FN2 about ARMK FY2025 Q4
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Transcript intelligence
What changed
Relative to the prior quarter, the company moved from a strong Q3 outlook to reported FY2025 results and a FY2026 framework: Q4 organic revenue growth was 14%, retention was 96.3%, and management outlined 7–9% organic growth with margin expansion and leverage below 3x. The focus also broadened toward converting major contracts and scaling AI, robotics, and supply-chain initiatives.
Guidance delta
Maintained. Management's FY2026 outlook calls for 7–9% organic revenue growth, 12–17% adjusted operating income growth, margin expansion to about 5.7%, and leverage below 3x.
Key takeaways
- Organic revenue grew 14% in Q4, supported by net-new wins and base growth.
- Client retention was 96.3%, with gross new wins of $1.6 billion.
- Management highlighted AI-enabled solutions, supply-chain efficiencies, and first-time outsourcing opportunities.
- The FY2026 plan combines growth and margin expansion with leverage targeted below 3x.
- Execution timing, contract start-up costs, and medical expenses remain key watch items.
Management priorities
- Convert large new contracts, including Penn Medicine and Blue Origin, into operations.
- Expand AI and robotics across menu, meal-preparation, staffing, and analytics workflows.
- Scale Quick Eats micro-markets and mobile ordering.
- Grow first-time outsourcing and international opportunities.
- Continue debt reduction and disciplined capital allocation.
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Analyst 52W Price Targets
Latest persisted target per named analyst; persisted current price from FN2's market snapshot as of Oct 2, 2026. Not an FN2 forecast.
Firm-level rating actions
FMP grade actions identify the grading firm, not a named analyst.
| Firm | Rating | Prior rating | Action | Date |
|---|---|---|---|---|
| RBC Capital | Outperform | Outperform | Maintain | Aug 19, 2026 |
| JP Morgan | Overweight | Overweight | Maintain | Aug 13, 2026 |
| Citigroup | Buy | Buy | Maintain | Aug 13, 2026 |
| UBS | Buy | Buy | Maintain | Aug 12, 2026 |
| Stifel | Buy | Buy | Maintain | Aug 12, 2026 |
| Jefferies | Buy | Buy | Maintain | Aug 12, 2026 |
| Baird | Outperform | Outperform | Maintain | Aug 12, 2026 |
| Truist Securities | Buy | Buy | Maintain | Jul 27, 2026 |
| Oppenheimer | Outperform | Outperform | Maintain | Jun 29, 2026 |
| B of A Securities | Buy | Buy | Maintain | Jun 2, 2026 |
| Morgan Stanley | Equal Weight | Equal Weight | Maintain | May 13, 2026 |
| Goldman Sachs | Buy | Buy | Maintain | Oct 16, 2024 |
| Deutsche Bank | Buy | Hold | Upgrade | Aug 7, 2024 |
| Barclays | Underweight | Underweight | Maintain | Aug 10, 2023 |
| Bernstein | Perform | Market Perform | Maintain | Apr 19, 2023 |
| Berenberg | Buy | Hold | Upgrade | Oct 21, 2021 |
| Stifel Nicolaus | Buy | Hold | Upgrade | Aug 19, 2019 |
| Nomura | Buy | Neutral | Upgrade | Aug 19, 2019 |
| Credit Suisse | Outperform | Outperform | Maintain | Aug 10, 2018 |
| Macquarie | Outperform | Outperform | Maintain | Aug 25, 2016 |
| Bank of America | Buy | Buy | Maintain | Aug 11, 2016 |
| Sterne Agee CRT | Buy | Buy | Maintain | Mar 22, 2016 |
| Credit Agricole | Outperform | Outperform | Maintain | Oct 1, 2014 |
| Wells Fargo | Outperform | Outperform | Maintain | Jan 21, 2014 |
Named analyst price targets
Upside is calculated against the persisted current price $55.55. FMP does not supply a rating on these named-analyst rows.
| Firm | Analyst | 52W target | Price when posted | Upside | Date |
|---|---|---|---|---|---|
| RBC Capital | Analyst unavailable | $70 | $60.23 | +26.0% | Aug 19, 2026 |
| New Street | Analyst unavailable | $70 | $60.35 | +26.0% | Aug 13, 2026 |
| Jefferies | Analyst unavailable | $70 | $61.24 | +26.0% | Aug 12, 2026 |
| Deutsche Bank | Analyst unavailable | $74 | $60.46 | +33.2% | Aug 12, 2026 |
| Goldman Sachs | Analyst unavailable | $70 | $60.45 | +26.0% | Aug 12, 2026 |
| UBS | Analyst unavailable | $71 | $60.47 | +27.8% | Aug 12, 2026 |
| Robert W. Baird | Andrew Wittmann | $69 | $60.47 | +24.2% | Aug 12, 2026 |
| Morgan Stanley | Analyst unavailable | $63 | $60.47 | +13.4% | Aug 11, 2026 |
| Truist Financial | Jasper Bibb | $70 | $57.18 | +26.0% | Jul 27, 2026 |
| Robert W. Baird | Andrew Wittmann | $63 | $57 | +13.4% | Jul 24, 2026 |
| UBS | Joshua Chan | $67 | $58.3 | +20.6% | Jul 13, 2026 |
| Deutsche Bank | Analyst unavailable | $65 | $56.05 | +17.0% | Jun 29, 2026 |
| Oppenheimer | Analyst unavailable | $65 | $56.06 | +17.0% | Jun 29, 2026 |
| Oppenheimer | Ian Zaffino | $60 | $53.3 | +8.0% | Jun 11, 2026 |
| RBC Capital | Analyst unavailable | $55 | $50.87 | -1.0% | May 14, 2026 |
| Truist Financial | Jasper Bibb | $58 | $49.49 | +4.4% | May 13, 2026 |
| Deutsche Bank | Analyst unavailable | $54 | $49.34 | -2.8% | May 13, 2026 |
| Morgan Stanley | Analyst unavailable | $50 | $49.24 | -10.0% | May 13, 2026 |
| UBS | Analyst unavailable | $56 | $48.4 | +0.8% | May 13, 2026 |
| Robert W. Baird | Analyst unavailable | $58 | $48.4 | +4.4% | May 13, 2026 |
| Goldman Sachs | Analyst unavailable | $51 | $48.4 | -8.2% | May 13, 2026 |
| Truist Financial | Analyst unavailable | $50 | $39.27 | -10.0% | Feb 17, 2026 |
| UBS | Analyst unavailable | $47 | $41.32 | -15.4% | Feb 11, 2026 |
| Robert W. Baird | Analyst unavailable | $50 | $40.96 | -10.0% | Feb 11, 2026 |
| Morgan Stanley | Toni Kaplan | $45 | $40.96 | -19.0% | Feb 10, 2026 |
| Robert W. Baird | Analyst unavailable | $46 | $36.68 | -17.2% | Nov 18, 2025 |
| Stifel Nicolaus | Analyst unavailable | $44 | $36.04 | -20.8% | Nov 17, 2025 |
| UBS | Analyst unavailable | $45 | $38.4 | -19.0% | Oct 1, 2025 |
| UBS | Analyst unavailable | $46 | $39.56 | -17.2% | Aug 6, 2025 |
| Morgan Stanley | Toni Kaplan | $43 | $40.4 | -22.6% | Dec 12, 2024 |
| RBC Capital | Karl Green | $42.5 | $38.53 | -23.5% | Sep 17, 2024 |
| Truist Financial | Jasper Bibb | $42 | $37.99 | -24.4% | Sep 11, 2024 |
| Robert W. Baird | Andrew Wittmann | $38 | $34.62 | -31.6% | Aug 7, 2024 |
| Deutsche Bank | Faiza Alwy | $39 | $33.66 | -29.8% | Aug 7, 2024 |
| Oppenheimer | Ian Zaffino | $39 | $32.9 | -29.8% | Jun 12, 2024 |
| Jefferies | Stephanie Moore | $37 | $32 | -33.4% | Jun 4, 2024 |
| Truist Financial | Jasper Bibb | $37 | $31.59 | -33.4% | Mar 20, 2024 |
| Goldman Sachs | Lizzie Dove | $33 | $28.81 | -40.6% | Jan 17, 2024 |
| J.P. Morgan | Analyst unavailable | $44 | $40.89 | -20.8% | Feb 8, 2023 |
| Morgan Stanley | Analyst unavailable | $44 | $41.96 | -20.8% | Jan 4, 2023 |
| Barclays | Analyst unavailable | $36 | $41.9 | -35.2% | Dec 2, 2022 |
| Deutsche Bank | Analyst unavailable | $43 | $40.51 | -22.6% | Nov 16, 2022 |
| Morgan Stanley | Analyst unavailable | $41 | $39.94 | -26.2% | Nov 16, 2022 |
| RBC Capital | Analyst unavailable | $45 | $40.55 | -19.0% | Nov 16, 2022 |
| Morgan Stanley | Analyst unavailable | $38 | $33.1 | -31.6% | Sep 27, 2022 |
| Morgan Stanley | Analyst unavailable | $37 | $36.44 | -33.4% | Aug 10, 2022 |
| Oppenheimer | Ian Zaffino | $32.49 | $24.89 | -41.5% | Jul 21, 2021 |
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Start freeCompany context
Snapshot as of publicationBased in Philadelphia, Pennsylvania, Aramark, established in 1959, provides a comprehensive array of services encompassing food management, facility solutions, and uniform provision. The company serves a diverse global clientele, including educational institutions, healthcare providers, various businesses and industrial clients, sports and entertainment venues, leisure operators, and correctional facilities, both within the United States and internationally. Aramark organizes its operations into three primary divisions: U.S. Food and Support Services, International Food and Support Services, and Uniform and Career Apparel. Its extensive food-related offerings feature managed dining programs, catering solutions, food service management, and convenience retail options. This includes operating on-site restaurants, providing executive dining experiences, managing convenience stores, and offering beverage and vending services.…
Historical context
All ARMK earningsIndustrials peers this season
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Latest beats and misses
Who reports nextBeat on EPS
- ACNFY2026 Q4 · October 1, 2026+3.5% EPS+15.8% move
- MKCFY2026 Q3 · October 1, 2026+13.9% EPS-4.9% move
- NKEFY2027 Q1 · October 1, 2026+10.0% EPS-0.7% move
- CAGFY2027 Q1 · September 30, 2026+44.4% EPS-4.9% move
- FDSFY2026 Q4 · September 30, 2026+3.9% EPS+3.8% move
- JBLFY2026 Q4 · September 30, 2026+8.1% EPS-10.0% move
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Sources
- Earnings call transcript and parsed analysis · 2026-05-11T10:29:34.698584+00:00
- FN2 earnings calendar · 2026-07-26T00:36:15.940040+00:00
- Polygon adjusted daily market bars · 2026-10-02T21:26:03.780602+00:00
- Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-10-02T21:26:03.777463+00:00
Methodology
Reported and consensus figures come from FN2's earnings event records. Market reaction and volume are calculated from daily adjusted bars around the event; abnormal move subtracts the SPY move over the same window.
Analyst target low, average, and high values are derived at request time from each named analyst's latest persisted FMP target. The current-price marker comes from FN2's persisted market snapshot. They are sell-side estimates, not an FN2 valuation or recommendation.
Transcript intelligence is a structured synthesis of the current and prior earnings-call analyses. Missing values stay missing and are never estimated.
By FN2 Research · Updated · As of 2026-10-02. For educational purposes only; not investment advice.