A provider of food and facilities services, Aramark runs cafeterias, dining halls, and building services for schools, hospitals, offices, stadiums, and correctional facilities in 16 countries. It began in 1936 when Davre Davidson started a vending business in Los Angeles, famously running it from his kitchen table and using the trunk of his 1932 Dodge as a warehouse. He merged with William Fishman in 1959 to form Automatic Retailers of America, which was renamed Aramark in 1994.
Aramark's Q3 operating income rose 18.1% to $215.6M as base business growth and supply chain efficiencies overcame a $20M calendar headwind.
Aramark absorbed a $20 million calendar and still grew profit. rose 9.3% to $5.06 billion and climbed 18.1% to $215.6 million, as base business growth and supply chain efficiencies more than offset the drag from fewer operational service days. The company's core growth engine is strong enough to overcome timing disruptions, but the calendar shift that helped earlier quarters has now reversed.
Key takeaways
rose 18.1% to $215.6 million despite an estimated $20 million negative impact from fewer operational service days tied to the fiscal 2025 53rd-week calendar shift, as base business growth and supply chain efficiencies drove the increase.
FSS United States grew 7.7%, led by a 17.8% increase in Business & Industry and a 12.0% increase in Sports, Leisure & Corrections, while Education fell 3.4% largely due to the calendar shift.
FSS International rose 13.2%, driven by growth in the U.K., Spain, Germany, and Canada, with a 0.7% favorable foreign currency translation on consolidated revenue.
Section summaries
Management's Discussion and Analysis
Q3 FY2026 revenue rose 9.3% to $5.06B and net income rose 36% to $97.8M on base growth and net new business.
⌄
Consolidated increased 9.3% to $5,057.9M in Q3 and 9.9% to $14,796.8M in the nine months, driven by base business growth and net new business, with foreign currency translation adding 0.7% and 1.4% respectively.
rose 36.0% to $97.7 million, and increased 33.3% to $0.36, reflecting the growth.
widened 0.5 percentage points to 8.5%, as supply chain efficiencies and pricing actions outpaced cost inflation.
was $4.8 million for the quarter, down 98.4% sequentially from $299.0 million in Q2, as the company moved into its seasonally weaker cash generation period.
What changed
The estimated $25 million calendar shift benefit that lifted Q2 FY2026 reversed in Q3, becoming an estimated $20 million from fewer operational service days — confirming the shift was a timing item, not a structural gain.
narrowed 0.2 percentage points sequentially to 8.5% from 8.7% in Q2, but remained above the 8.2% level of Q3 FY2025, suggesting the supply chain efficiencies flagged in prior quarters are holding even as the calendar fades.
The 17.8% growth in Business & Industry decelerated from 23.0% in Q2, consistent with the watch item from earlier filings that asked whether the rate was sustainable as return-to-office trends mature.
fell to $4.8 million from $299.0 million in Q2, a seasonal pattern that mirrors prior years, but the nine-month figure of negative $264.8 million in keeps the full-year cash trajectory in focus.
What to watch
Whether can hold above 8.4% in Q4 now that the calendar shift has become a and the lower-medical-cost comparison from earlier quarters has fully annualized.
The trajectory of Business & Industry growth as the rate decelerated from 23.0% in Q2 to 17.8% in Q3 — whether it stabilizes at this level or continues to slow.
Whether turns positive for the full fiscal year, given the $264.8 million nine-month operating cash outflow and the seasonally stronger Q4 ahead.
The impact of the $2.4 billion Term B-10 loan repricing and the additional $200 million in interest rate swaps on , which rose in Q1 and remains a pressure point.
rose 18.1% to $215.6M in Q3 and 13.7% to $652.9M in the nine months, despite an estimated $20M negative impact from fewer operational service days due to the fiscal 2025 53rd-week calendar shift.
FSS United States grew 7.7% in Q3, led by Business & Industry (+17.8%) and Sports, Leisure & Corrections (+12.0%), while Education fell 3.4% largely due to the calendar shift.
FSS International grew 13.2% in Q3 and 17.0% in the nine months, driven by the U.K., Spain, Germany and Canada plus favorable foreign currency translation.
Net cash used in operating activities was $264.8M for the nine months, with higher use from and timing partially offset by higher accrued expenses.
was $1,621.6M for the twelve months ended July 3, 2026, with a of 2.59x versus a 5.125x maximum and an of 4.77x versus a 2.000x minimum.
Quantitative and Qualitative Disclosures About Market Risk
We are exposed to the impact of interest rate changes and manage this exposure through the use of variable-rate and fixed-rate debt and by utilizing interest rate swaps. We do not enter into contracts for trading purposes and do not use leveraged instruments. The market risk ass…
⌄
We are exposed to the impact of interest rate changes and manage this exposure through the use of variable-rate and fixed-rate debt and by utilizing interest rate swaps. We do not enter into contracts for trading purposes and do not use leveraged instruments. The market risk associated with debt obligations as of July 3, 2026 has not materially changed from October 3, 2025 (see Part II, Item 7A "Quantitative and Qualitative Disclosure About Market Risk" in our Annual Report on Form 10-K for the fiscal year ended October 3, 2025 filed with the SEC on November 25, 2025). However, we completed a debt related transaction during the first quarter of fiscal 2026 that may impact our related exposure to this market risk. Specifically, we repriced $2.4 billion of U.S. Term B-8 Loans due 2030 under the Credit Agreement by refinancing them with $2.4 billion of new U.S. Term B-10 Loans due June 2030. Additionally, during the nine months ended July 3, 2026, we entered into interest rate swaps with a notional amount of $200.0 million. See Note 3 to the condensed consolidated financial statements related to the changes in our debt levels. See Note 4 to the condensed consolidated financial statements for a discussion of our derivative instruments and Note 11 for the disclosure of the fair value and related carrying value of our debt obligations as of July 3, 2026.
Company states no pending legal actions or environmental matters are likely to be material, individually or in aggregate.
⌄
The company and its subsidiaries are party to various routine legal actions, proceedings, and investigations involving claims incidental to the conduct of its business.
Claims may be brought by clients, customers, employees, government entities, and third parties under a wide range of laws, including employment, wage and hour, discrimination, immigration, environmental, antitrust, consumer protection, intellectual property, anti-corruption, data privacy, and alcohol licensing laws.
Based on currently available information, advice of counsel, insurance coverage, established , and other resources, the company does not believe any such actions are likely to be material, individually or in the aggregate, to its business, financial condition, results of operations, or cash flows.
The company cautions that unexpected further developments could make the ultimate resolution of these or similar matters materially adverse.
The company is engaged in informal settlement discussions with federal, state, local, and foreign authorities regarding alleged environmental law violations tied to its operations, predecessors, or acquired companies.
As of July 3, 2026, the company does not believe the aggregate amount of those environmental matters and related remediation costs will have a material adverse effect on its financial condition or results of operations.
The section refers readers to Note 9 of the condensed consolidated financial statements for additional information.
There have been no material changes to the risk factors disclosed in Part I, Item 1A, "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended October 3, 2025 filed with the SEC on November 25, 2025.
⌄
There have been no material changes to the risk factors disclosed in Part I, Item 1A, "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended October 3, 2025 filed with the SEC on November 25, 2025.