Aramark 2025 Q4 Earnings EPS Declines 28.3% Despite Revenue Growth

Aramark (ARMK) reported fiscal 2025 Q4 earnings on Nov 17, 2025, with results missing Wall Street expectations. The company’s revenue rose 14.3% year-over-year to $5.05 billion, but adjusted EPS fell 28.3% to $0.33, and fiscal 2026 guidance fell short of analyst estimates.

Revenue

Aramark’s total revenue for Q4 2025 reached $5.05 billion, a 14.3% increase from the previous year. The Food and Support Services (FSS) segment drove the growth with $5.05 billion in revenue, led by the U.S. division at $3.61 billion and the International segment contributing $1.44 billion. The Corporate segment reported $0 in revenue.

Earnings/Net Income

Aramark’s EPS declined 28.3% to $0.33 in Q4 2025, compared to $0.46 in Q4 2024. Net income dropped 28.6% to $87.24 million, down from $122.25 million a year ago. The EPS and net income declines highlight the challenges in maintaining profitability despite strong revenue growth.

Price Action

The stock price of Aramark edged up 0.59% during the latest trading day but dropped 4.15% during the most recent full trading week and 6.37% month-to-date.

Post-Earnings Price Action Review

The strategy of purchasing Aramark shares following its revenue growth announcement and holding for 30 days has shown favorable performance over the past three years. While the initial 30-day period yielded moderate gains with average annual returns between 3.5% and 4.5%, the returns were modest due to the short holding period. However, the cumulative effect over three years resulted in a respectable overall return, making it a conservative yet viable approach for investors capitalizing on Aramark’s earnings-driven movements.

CEO Commentary

John Zillmer, CEO & Director, highlighted Aramark’s strong fiscal 2025 performance, driven by $1.6 billion in annualized gross new wins (12% YoY growth) and a 96.3% client retention rate. He emphasized strategic priorities, including AI-driven innovations and supply chain optimizations, while expressing confidence in fiscal 2026 growth from new clients like Penn Medicine and Blue Origin.

Guidance

James Tarangelo, CFO, outlined fiscal 2026 guidance: revenue of $19.45–19.85 billion (7–9% growth), AOI of $1.1–1.15 billion (12–17% increase), and adjusted EPS of $2.18–2.28 (20–25% growth). Key drivers include net new business (4–5% contribution) and supply chain efficiencies, though Q1 revenue may dip slightly due to a calendar shift.

Additional News

Aramark announced a 14% increase in its quarterly dividend to $0.12 per share, payable December 17, 2025, and repurchased 4 million shares in fiscal 2025. The company also secured a landmark contract with a top-tier medical system, set to begin operations in fiscal 2026. Additionally, Aramark reduced its leverage ratio to 3.25x, the lowest in nearly 20 years, and plans to continue share buybacks under a 10b5-1 plan.

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