Aramark raised its fiscal 2026 organic revenue growth forecast to 9% to 10% after third-quarter sales climbed 9% to $5.1 billion, driven in part by new contracts with artificial intelligence data center operators. The Philadelphia-based food and facilities services company previously projected growth at the high end of a 7% to 9% range.
New client wins exceeded $1.6 billion during the fiscal year to date, up 51% from the same period a year earlier. Client retention reached approximately 98%, the company said.
AI data centers open a new revenue stream
Aramark began providing hospitality services at a Texas AI data center operated by a global hyperscaler late in the quarter. A second location is being prepared, and the company expects additional sites.
Through its Aramark Nexus business, the company also secured a multiyear agreement with an AI data center colocation provider covering workforce communities across multiple locations, including sites in Wyoming and Texas. Aramark said the services are intended to help data center operators attract and retain skilled workers through hospitality offerings and workplace amenities.
"We continue to build on the momentum across the portfolio, including industry-leading client retention, broad-based revenue growth in the U.S. and International, record levels of new client wins, and the continued expansion of Aramark Nexus," Chief Executive Officer John Zillmer said.
Quarterly results and the calendar effect
Third-quarter operating income increased 18% to $216 million, while adjusted operating income rose 13% to $261 million. Earnings per share climbed 34% to 36 cents, and adjusted earnings increased 29% to 52 cents per share on a constant-currency basis.
A calendar shift from a 53rd week in fiscal 2025 reduced reported revenue growth by an estimated two percentage points, mainly affecting the education business. Without that timing effect, revenue would have increased approximately 11%, operating income would have climbed about 29%, and adjusted operating income would have risen approximately 21%.
The shift also reduced earnings growth. Aramark estimated earnings per share would have increased about 55% and adjusted earnings about 43% without the timing difference.
In the U.S., sales benefited from higher spending and attendance at sporting events, including FIFA World Cup matches and NBA and NHL playoff games, plus growth in business dining and health care accounts. The business and industry segment recorded sustained double-digit growth. International operations expanded across Spain, Canada, the United Kingdom and Germany. Currency translation added approximately $33 million to consolidated revenue.
Balance sheet and outlook
Cash generated from operating activities increased by $41 million during the quarter, and free cash flow rose by $42 million. The company ended the period with more than $1.4 billion in available cash. After the quarter closed, Aramark repaid approximately $100 million of term loans due in 2028.
Aramark has repurchased more than 5 million shares for approximately $194 million since launching its share repurchase program. The company maintained its full-year forecasts for adjusted operating income growth of 12% to 17% and adjusted earnings-per-share growth of 20% to 25%, both on a constant-currency basis.
Management expects profitability growth and margin expansion to accelerate in the fourth quarter as new contracts begin contributing and the Nexus business generates early earnings. The board approved a quarterly dividend of 12 cents per share, payable September 9, 2026.
Why this matters for sales professionals
Aramark's results show that data center operators are spending on services beyond core construction and power infrastructure. The company's Nexus contracts cover workforce communities - food, hospitality and workplace amenities - at sites in Texas and Wyoming, with more locations expected. For sales teams targeting the AI infrastructure market, that signals an opportunity to sell recurring services to the people who operate these facilities, not just the hardware inside them.
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