$Aramark(ARMK-W)$ (NYSE:ARMK) shares climbed Tuesday after the food and facilities services provider posted a modest earnings beat and stronger-than-expected revenue.

Management pointed to robust new business momentum and record client retention while reiterating its full-year outlook.

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Quarterly Metrics

The company reported first-quarter adjusted earnings per share of 51 cents, beating the analyst consensus estimate of 50 cents. Quarterly sales of $4.832 billion (+6% year over year) outpaced the Street view of $4.739 billion.

Aramark said it reported strong momentum in new business wins alongside record client retention. Net new business is tracking ahead of its run rate, positioning the company to meet full-year growth targets, the company said.

The favorable effect of currency translation increased revenue by approximately $51 million. Organic revenue, which excludes the effect of currency translation, was higher by 5% compared to the same year-ago period. 

Operating Income was $218 million, slightly higher than the prior year period, and AOI increased 1%1 to $263 million.

At quarter-end, the company had approximately $1.4 billion in cash availability.

Dividend

Aramark approved a quarterly dividend of 12 cents per share of common stock, as announced on Feb. 4, 2026. The dividend will be payable on March 4.

Outlook

Aramark reaffirms fiscal 2026 adjusted EPS guidance of $2.18 to $2.28, compared with analysts' estimates of $2.21.

The firm maintains sales guidance of $19.55 billion to $19.95 billion versus the $19.71 billion consensus.

ARMK Price Action: Aramark shares are trading higher by 5.88% to $41.06 at publication on Tuesday.

Photo: Courtesy of Aramark