This Unexpected AI Winner Just Hit 52-Week High

Aramark (NYSE: ARMK ) reported third-quarter fiscal 2026 results Tuesday that beat Wall Street expectations.

Adjusted earnings were 52 cents per share, topping the 48-cent estimate.

Revenue of $5.06 billion beat the $4.94 billion estimate.

Shares jumped after Aramark beat quarterly estimates, raised its full-year organic revenue outlook and highlighted growing demand for its Aramark Nexus AI data center offering.

Aramark CEO John Zilmer said the company sees a "many billions of dollars" addressable market for its Aramark Nexus business as demand for AI data center infrastructure expands.

Zilmer said hundreds of data center projects are under consideration in the U.S. and globally, creating significant growth potential for Aramark's hospitality services.

The company has eight sites assigned and under development at various stages. "We want to be first, we want to be the biggest, and we want to get our fair share," Zilmer said.

Revenue increased 9% year over year, while organic revenue also grew 9%.

GAAP diluted earnings per share rose 34% to 36 cents.

Adjusted EPS increased 29% on a constant-currency basis.

Operating income climbed 18% to $216 million.

Adjusted operating income, or AOI, increased 13% to $261 million.

Calendar Shift, New Business Boost Growth The results reflected a calendar shift related to fiscal 2025's 53rd week.

Excluding that impact, Aramark said revenue would have increased about 11%.

Operating income would have risen about 29%, while AOI would have grown about 21%.

GAAP EPS growth would have been about 55%, while adjusted EPS growth would have been about 43%.

New client wins exceeded $1.6 billion fiscal year to date, up 51%.

Client retention was about 98%.

U.S., International Businesses Expand Food and Support Services United States revenue increased 8% to $3.50 billion.

AOI was $211 million, with an adjusted margin of 6%.

Sports, Leisure & Corrections, Business & Industry and Healthcare led growth.

Food and Support Services International revenue climbed 13% to $1.56 billion, or 11% organically.

AOI rose to $85 million, with an adjusted margin of 5.4%.

The international business added nearly 200 new client accounts during the quarter.

Aramark Nexus Expands AI Data Center Footprint Aramark began operations at its first Texas-based AI data center site for a top global hyperscaler.

The company is also mobilizing a second site.

The scope of work across the two locations is expected to increase about 40% from original estimates.

Aramark expects additional locations to follow.

The company also secured a multiyear engagement with an AI data center colocation provider in Wyoming and Texas.

Aramark Raises Fiscal 2026 Revenue Outlook Third-quarter operating cash flow was $117.2 million, while free cash flow totaled $8.7 million.

Aramark ended the quarter with $499.4 million in cash and cash equivalents and about $6.1 billion in long-term borrowings.

The company had more than $1.4 billion of cash availability.

It also repaid about $100 million of 2028 term loans after the quarter ended.

Aramark raised its fiscal 2026 organic revenue growth forecast to 9%-10%.

The company reaffirmed its outlook for AOI growth of 12%-17%, adjusted EPS growth of 20%-25% and leverage below 3 times.

Aramark also maintained adjusted EPS guidance of $2.18-$2.28, compared with the $2.22 analyst estimate.