Aramark's profitability remains strained, with gross margins contracting to 6.0% in 2026Q2 from 9.0% in 2024Q4, indicating an inability to fully offset inflationary input costs.
| Metric | TTM | Oct'25 | Sep'24 | Sep'23 | Sep'22 | Sep'21 | Sep'20 | Sep'19 | Sep'18 | Sep'17 | Sep'16 | Sep'15 | Sep'14 | Sep'13 | Sep'12 |
|---|
| Sales/Revenue | 19.41B | 18.51B | 17.4B | 16.08B | 13.69B | 12.1B | 12.83B | 16.23B | 15.79B | 14.6B | 14.42B | 14.33B | 14.83B | 13.95B | 13.51B |
| Revenue Growth % | 10.15% | 6.35% | 8.19% | 17.5% | 13.16% | -5.72% | -20.94% | 2.77% | 8.12% | 1.31% | 0.6% | -3.4% | 6.36% | 3.26% | - |
| Cost of Goods Sold | 18.17B | 17.44B | 15.98B | 14.77B | 12.62B | 11.01B | 11.99B | 14.53B | 14B | 13B | 12.89B | 12.88B | 13.36B | 12.66B | 12.19B |
| COGS % of Revenue | - | 94.22% | 91.81% | 91.86% | 92.17% | 91% | 93.48% | 89.56% | 88.65% | 88.98% | 89.42% | 89.89% | 90.1% | 90.79% | 90.27% |
| Gross Profit | 1.25B | 1.07B | 1.43B | 1.31B | 1.07B | 1.09B | 835.89M | 1.69B | 1.79B | 1.61B | 1.53B | 1.45B | 1.47B | 1.28B | 1.31B |
| Gross Margin % | 6.42% | 5.78% | 8.19% | 8.14% | 7.83% | 9% | 6.52% | 10.44% | 11.35% | 11.02% | 10.58% | 10.11% | 9.9% | 9.21% | 9.73% |
| Gross Profit Growth % | - | -24.93% | 8.95% | 22.1% | -1.58% | 30.27% | -50.68% | -5.42% | 11.36% | 5.48% | 5.3% | -1.38% | 14.36% | -2.24% | - |
| Operating Expenses | 408.62M | 278.44M | 719.17M | 683.52M | 656.33M | 897.44M | 1.1B | 803.52M | 973.31M | 807.38M | 779.11M | 820.77M | 904.43M | 770.04M | 732.23M |
| OpEx % of Revenue | - | 1.5% | 4.13% | 4.25% | 4.8% | 7.42% | 8.58% | 4.95% | 6.16% | 5.53% | 5.4% | 5.73% | 6.1% | 5.52% | 5.42% |
| Selling, General & Admin | 214.13M | 278.44M | 283.63M | 273.66M | 258.36M | 346.75M | 307.02M | 367.26M | 377.13M | 299.17M | 283.34M | 316.74M | 382.85M | 227.9M | 203.02M |
| SG&A % of Revenue | - | 1.5% | 1.63% | 1.7% | 1.89% | 2.87% | 2.39% | 2.26% | 2.39% | 2.05% | 1.97% | 2.21% | 2.58% | 1.63% | 1.5% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 2M | 0 | 435.55M | 409.86M | 397.98M | 550.69M | 793.79M | 436.26M | 596.18M | 508.21M | 495.76M | 504.03M | 521.58M | 542.14M | 529.21M |
| Operating Income | 837.71M | 791.85M | 706.51M | 625.03M | 415.39M | 191.44M | -264.92M | 891.16M | 818.41M | 801.63M | 746.31M | 627.94M | 564.56M | 514.47M | 581.77M |
| Operating Margin % | 4.32% | 4.28% | 4.06% | 3.89% | 3.03% | 1.58% | -2.06% | 5.49% | 5.18% | 5.49% | 5.18% | 4.38% | 3.81% | 3.69% | 4.31% |
| Operating Income Growth % | - | 12.08% | 13.04% | 50.47% | 116.98% | 172.27% | -129.73% | 8.89% | 2.09% | 7.41% | 18.85% | 11.23% | 9.74% | -11.57% | - |
| EBITDA | 1.34B | 1.27B | 1.14B | 1.03B | 813.37M | 742.14M | 330.28M | 1.48B | 1.41B | 1.31B | 1.24B | 1.13B | 1.09B | 1.06B | 1.11B |
| EBITDA Margin % | 6.91% | 6.85% | 6.56% | 6.43% | 5.94% | 6.14% | 2.57% | 9.14% | 8.96% | 8.97% | 8.62% | 7.9% | 7.32% | 7.58% | 8.23% |
| EBITDA Growth % | 9.72% | 11.04% | 10.36% | 27.23% | 9.6% | 124.7% | -77.74% | 4.89% | 8% | 5.46% | 9.73% | 4.22% | 2.8% | -4.89% | - |
| D&A (Non-Cash Add-back) | 504.2M | 476.35M | 435.55M | 409.86M | 397.98M | 550.69M | 595.2M | 592.57M | 596.18M | 508.21M | 495.76M | 504.03M | 521.58M | 542.14M | 529.21M |
| EBIT | 825.23M | 772.38M | 754.06M | 1.03B | 432.07M | 280.86M | -258.29M | 908.98M | 824.92M | 806.64M | 746.1M | 628.26M | 564.12M | 516.25M | 584.05M |
| Net Interest Income | -347.57M | -341.93M | -366.72M | -437.48M | -368.18M | -398.46M | -374.44M | -341.33M | -346.54M | -280.99M | -315.38M | -285.94M | -334.89M | -423.85M | -456.81M |
| Interest Income | 0 | 22.45M | 22.48M | 29.81M | 16.68M | 15.25M | 14.99M | 28.98M | 16.96M | 12.37M | 5.29M | 4.93M | 4.34M | 6.43M | 5.48M |
| Interest Expense | 347.57M | 364.38M | 389.19M | 467.29M | 384.86M | 413.71M | 389.43M | 370.31M | 353.05M | 286M | 315.17M | 286.26M | 334.44M | 425.63M | 459.08M |
| Other Income/Expense | -360.04M | -361.39M | -341.64M | -61.5M | -368.18M | -324.3M | -382.8M | -334.99M | -346.54M | -280.99M | -315.38M | -285.94M | -334.89M | -423.85M | -456.81M |
| Pretax Income | 477.66M | 430.46M | 364.87M | 563.52M | 47.21M | -132.85M | -647.72M | 556.17M | 471.88M | 520.64M | 430.93M | 342M | 229.68M | 90.63M | 124.97M |
| Pretax Margin % | 2.46% | 2.33% | 2.1% | 3.5% | 0.34% | -1.1% | -5.05% | 3.43% | 2.99% | 3.56% | 2.99% | 2.39% | 1.55% | 0.65% | 0.93% |
| Income Tax | 119.83M | 103.59M | 102.97M | 116.43M | 8.43M | -40.63M | -186.28M | 107.71M | -96.56M | 146.46M | 142.7M | 105.02M | 80.22M | 19.23M | 18.07M |
| Effective Tax Rate % | 25.09% | 24.06% | 28.22% | 20.66% | 17.86% | 30.59% | 28.76% | 19.37% | -20.46% | 28.13% | 33.11% | 30.71% | 34.93% | 21.22% | 14.46% |
| Net Income | 357.03M | 326.39M | 262.52M | 674.11M | 194.48M | -90.83M | -461.44M | 448.55M | 567.88M | 373.92M | 287.81M | 235.95M | 148.96M | 69.36M | 103.55M |
| Net Margin % | 1.84% | 1.76% | 1.51% | 4.19% | 1.42% | -0.75% | -3.6% | 2.76% | 3.6% | 2.56% | 2% | 1.65% | 1% | 0.5% | 0.77% |
| Net Income Growth % | 2.59% | 24.33% | -61.06% | 246.61% | 314.11% | 80.32% | -202.87% | -21.01% | 51.87% | 29.92% | 21.98% | 58.4% | 114.77% | -33.02% | - |
| Net Income (Continuing) | 357.83M | 326.87M | 261.89M | 447.1M | 38.78M | -92.22M | -461.44M | 448.47M | 568.44M | 374.19M | 288.23M | 236.98M | 149.46M | 71.4M | 106.9M |
| Discontinued Operations | 0 | 0 | 0 | 226.43M | 155.4M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -1.03M | 297K |
| Minority Interest | 61.87M | 14.13M | 7.49M | 8.22M | 8.84M | 9.05M | 9.99M | 9.91M | 10.09M | 9.8M | 9.79M | 10.1M | 9.88M | 10.2M | 33.85M |
| EPS (Diluted) | 1.34 | 1.22 | 0.99 | 2.57 | 0.75 | -0.36 | -1.83 | 1.78 | 2.24 | 1.49 | 1.16 | 0.96 | 0.63 | 0.30 | 0.45 |
| EPS Growth % | 318.75% | 23.23% | -61.48% | 242.67% | 308.33% | 80.33% | -202.81% | -20.54% | 50.34% | 28.45% | 20.83% | 52.38% | 110% | -33.33% | - |
| EPS (Basic) | - | 1.24 | 1.00 | 2.59 | 0.76 | -0.36 | -1.83 | 1.82 | 2.31 | 1.53 | 1.19 | 0.99 | 0.66 | 0.30 | 0.45 |
| Diluted Shares Outstanding | 266.39M | 267.35M | 266.2M | 262.59M | 259.07M | 254.75M | 251.83M | 252.01M | 253.35M | 251.56M | 248.76M | 246.62M | 237.45M | 229.84M | 229.84M |
| Basic Shares Outstanding | 263.16M | 263.86M | 263.05M | 260.59M | 257.31M | 254.75M | 251.83M | 246.85M | 245.77M | 244.45M | 242.29M | 237.62M | 225.87M | 229.84M | 229.84M |
| Dividend Payout Ratio | - | 33.95% | 38.05% | 17% | 58.16% | - | - | 24.18% | 18.16% | 26.96% | 31.99% | 34.71% | 35.03% | - | - |
Margin compression from inflation
According to recent financial filings, Aramark reported a 14.7% revenue increase in 2026Q2, yet this follows a period of inconsistent top-line performance, including a 9.9% contraction in 2024Q4, suggesting that the company's growth trajectory remains highly sensitive to seasonal institutional cycles and contract renewal timing.
The recent acceleration in revenue appears to be driven by volume recovery rather than structural pricing power, given the persistent pressure on gross margins. Investors should monitor whether this growth is sustainable or merely a reflection of lumpy contract wins that may not translate into long-term recurring revenue stability.
As reported in quarterly income statements, Aramark's gross margin has compressed from 9.0% in 2024Q4 to 6.0% in 2026Q2, indicating that the company is struggling to pass through inflationary input costs effectively within its current portfolio of institutional service contracts.
This downward trend in gross profitability suggests that the company's reliance on high-volume, low-margin contracts leaves it vulnerable to labor and food cost spikes. The inability to maintain historical margin levels warrants investigation into whether the current contract mix is fundamentally misaligned with the prevailing inflationary environment.
Based on the provided income statement data, operating income has failed to scale proportionally with revenue, as evidenced by operating margins hovering near 4.5% despite significant top-line growth, suggesting that administrative and logistical overhead remains a persistent drag on the company's bottom-line profitability.
The lack of meaningful operating leverage implies that the company's centralized procurement and logistics model may be reaching a point of diminishing returns. Analysts should consider whether the current SG&A structure is optimized for the post-spin-off entity or if further cost-rationalization is required to improve efficiency.
Analysis of reported figures reveals significant EPS volatility, with growth swinging from a 163.5% increase in 2025Q4 to a 7.7% decline in 2026Q1, largely driven by non-operating items and fluctuating tax impacts that obscure the underlying performance of the core food and facilities management business.
The presence of consistent stock-based compensation expenses, averaging over $15 million per quarter, further dilutes the quality of reported net income for shareholders. Investors should look past the headline EPS figures to evaluate whether the core operating cash flow is sufficient to support the company's capital-intensive contract requirements.
Quick answers to the most common questions about buying ARMK stock.
For fiscal year 2025, Aramark (ARMK) reported total revenue of $18.51B. This represents a 37.0% increase compared to $13.51B in 2012.
Aramark (ARMK) is profitable, generating $326.4M in net income for the fiscal year ending 2025 with a net profit margin of 1.8%.
Aramark (ARMK) reported an operating income of $791.8M, resulting in an operating profit margin of 4.3%. This margin reflects the operational efficiency of the business before interest and taxes.
Aramark (ARMK) generated $1.07B in gross profit for the year, representing a gross profit margin of 5.8%. This demonstrates the company's core pricing power and production efficiency.