Aramark Reports Strong Q3 Results and Expands AI Data Center Operations
Aramark (NYSE:ARMK) reported strong fiscal third-quarter results, with organic revenue rising 9% to $5 billion and adjusted earnings per share increasing nearly 30%. The company raised its full-year growth outlook and highlighted progress in expanding its Aramark Nexus unit, which provides hospitality services for AI data centers. Management noted a growing footprint at hyperscaler sites, including new contracts in Texas and Wyoming. Despite the positive results, some figures were influenced by adjustments and calendar shifts that temporarily reduced adjusted operating income estimates by $18 million to $19 million. Cash generation was modest compared to revenue growth, with free cash flow rising only slightly. Aramark also remains focused on reducing its leverage ratio below 3 times. Institutional ownership increased in the latest quarter, and shares trade at a forward P/E of 9.70, suggesting skepticism about projected future growth.
Tickers: $ARMK
Topics: AI data centers client retention new client wins organic revenue growth