Aramark reported fiscal 2025 results that showed a 6% year‑over‑year increase in consolidated revenue to $18.5 billion, while GAAP earnings per share rose to $1.22, a 23% gain over the $0.99 reported in fiscal 2024. Adjusted earnings per share for the year were $1.55, essentially flat with the prior year’s $1.55, indicating that the company’s cost‑control initiatives kept profitability stable despite modest revenue growth.
In the fourth quarter, revenue reached $5.048 billion, a 14% increase from the same period in fiscal 2024. Operating income was $218 million, slightly down from $219 million a year earlier, and adjusted operating income climbed 6% to $289 million. GAAP earnings per share for the quarter were $0.57, and adjusted EPS was $0.64, both falling short of the consensus estimates of $0.65 and $0.66, respectively. Management attributed the miss to delayed openings of new accounts in the corrections, workplace experience, and healthcare segments, as well as higher medical and prescription claims, including GLP‑1 coverage.
The full‑year performance was underpinned by strong base‑business volume and a record number of new client wins, which helped offset the headwinds that pushed the Q4 revenue short of analyst expectations. Operating margin improved by 20 basis points to 9.9%, driven by higher mix in higher‑margin segments and disciplined cost management. The company’s dividend was increased by 14% to $0.12 per share, reflecting confidence in cash‑flow generation and a commitment to returning value to shareholders.
Looking ahead, Aramark guided fiscal 2026 revenue to $19.55–$19.95 billion, a modest upward revision that signals management’s confidence in continued demand growth. The company also reiterated its focus on supply‑chain optimization and AI‑driven technology to sustain margin expansion.
CEO John Zillmer noted during the earnings call that the company’s supply‑chain optimization initiatives, including new AI‑driven technology, have driven significant incremental cost savings. He also emphasized that the company is taking steps to limit the impact of higher medical and prescription claims in the coming periods.
Investors reacted negatively to the earnings miss, with analysts noting that the revenue shortfall and lower-than‑expected EPS were the primary drivers of the market’s response. The company’s guidance and dividend increase, however, suggest a positive long‑term outlook despite the short‑term challenges.
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