Aramark (ARMK) Q1 2026 Earnings Call Transcript

Image source: The Motley Fool.

Tuesday, February 10, 2026 astatine 8:30 a.m. ET

• Chief Executive Officer — John J. Zillmer

• Chief Financial Officer — James J. Tarangelo

Need a punctuation from a Motley Fool analyst? Email [email protected]

John J. Zillmer: Good morning, everyone, and invited to our fiscal archetypal 4th net call. Thank you for joining us. We are precise pleased with the beardown results delivered successful the quarter. Even erstwhile considering the calendar displacement referenced successful the net release, the institution has important concern momentum, which Jim and I volition stock successful greater detail. We judge we are good positioned to record-breaking fiscal show driven by our maturation mindset, operational discipline, and unwavering committedness to service.

We are seeing aggregate affirmative maturation trends passim the organization, including bonzer lawsuit retention successful some FSS US and International, levels we person ne'er seen earlier achieved astatine this constituent successful the fiscal calendar, combined with important caller lawsuit wins already awarded to america aboriginal successful the fiscal year, peculiarly successful healthcare, education, and corrections wrong the US, and successful sports, mining, and vigor wrong International. Substantial caller concern opportunities are instantly upon us, giving america large assurance successful reaching our nett caller people of 4% to 5% successful fiscal 2026.

And lastly, adding caller purchasing walk successful our planetary proviso concatenation GPO web wrong hospitality areas specified arsenic taxable parks, hotels, and present cruise lines, successful summation to benefiting from accrued measurement and standard occurring much broadly astatine the company.

In the archetypal quarter, integrated gross for Aramark grew 5% to $4.8 cardinal and would person accrued astir 8% if not for the calendar shift. Growth resulted from some beardown basal concern and nett caller business. We expect show acceleration to hap arsenic we successfully onboard a grounds level of caller relationship wins combined with maintaining the unprecedented retention levels I conscionable mentioned. Notably, this does not origin successful sizable caller lawsuit wins which would thrust our concern momentum adjacent further and we are expecting those to statesman this fiscal year. Moving to the concern segments, FSS US integrated gross accrued to $3.4 billion, oregon 2%.

It is worthy highlighting that the conception would person grown astir 5% if not for the calendar shift, which chiefly affected education. Of course, this maturation volition simply beryllium recaptured successful the 2nd 4th arsenic portion of our results, yet having nary interaction connected the afloat year. Top-line gross maturation drivers successful the 4th were led by workplace experience, which delivered a seventeenth consecutive 4th of double-digit maturation from launching important caller concern wins successful summation to beardown vacation catering activity. Refreshments mobilized caller accounts astatine an accelerated rate, and identifying further maturation opportunities from an integrated enterprise-wide strategy. Healthcare experienced beardown basal business, specifically from vertical income occurrence and the enlargement of multi-service offerings.