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Aramark Reports Q3 Revenue Below Expectations, Highlights Strategic Gains
ByAinvest
Wednesday, Aug 6, 2025 2:21 am ET1min read
Aramark reported Q3 revenue of $4.63 billion, slightly below expectations. CEO John Zillmer highlighted strategic gains, including a major client deal and AI-driven supply chain optimizations. The company has achieved 97% client retention and continues to advance capital allocation strategies. Aramark's financial health is underscored by a 3% one-year revenue growth rate and 11.2% three-year growth rate. The company's market capitalization is approximately $11.3 billion.
Aramark (NYSE: ARMK) has reported its third quarter fiscal 2025 results, showing a mix of strong performance and a slight miss on revenue expectations. The company reported a 6% year-over-year (YoY) increase in revenue to $4.63 billion, slightly below the market's expectations of $4.7 billion [1]. The organic revenue growth, which excludes the effect of currency translation, was 5% YoY.CEO John Zillmer highlighted several strategic gains, including a major client win in the Sports & Entertainment sector and the implementation of AI-driven supply chain optimizations. The company also reported a 13% YoY increase in operating income and a 19% YoY increase in adjusted operating income (AOI), driven by higher revenue levels, expanded supply chain capabilities, and disciplined above-unit cost management [1].
Client retention rates remain strong, with the company reporting a retention rate of 97% in both the FSS United States and International segments. Aramark's financial health is further underscored by a 3% one-year revenue growth rate and an 11.2% three-year growth rate [1].
Despite the slight revenue shortfall, Aramark's market capitalization remains strong at approximately $11.3 billion. The company's capital allocation commitment remains focused on strategic investments to drive growth, debt repayment, dividend payments, and stock repurchases [1].
The company has scheduled a conference call for today at 8:30 a.m. ET to discuss its third quarter results in more detail.
References:
[1] https://aramark.gcs-web.com/news-releases/news-release-details/aramark-reports-third-quarter-earnings-5
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