Aramark reported a 14% increase in fourth-quarter sales while highlighting that it is onboarding an “unprecedented level of new business,” signaling growth momentum for the company despite weaker earnings.

Earnings Miss Expectations

The company posted net income of $87.2 million, down from $122.3 million a year ago. On a per-share basis, earnings were 33 cents, compared with 46 cents the previous year. Adjusted earnings came in at 57 cents a share, below analysts’ expectations of 64 cents, according to FactSet.

Aramark said its profit was dragged down by additional incentive-based compensation linked to newly secured contracts.

Revenue and Guidance

Fourth-quarter sales rose to $5.05 billion, slightly below Wall Street estimates of $5.16 billion. The company issued guidance for fiscal 2026 revenue between $19.55 billion and $19.95 billion and adjusted earnings of $2.18 to $2.28 per share, compared with analysts’ expectations of $19.69 billion in revenue and $2.27 per share in earnings.

In October, Aramark was awarded a systemwide contract with Penn Medicine, which analysts said is expected to drive significant revenue growth starting in fiscal 2026.

Dividend Increase

Aramark also raised its quarterly dividend by 14% to 12 cents per share, reflecting confidence in its long-term growth prospects despite near-term earnings pressure.