Revenue growth accelerated to 9.3% year-over-year in Q3 2026, but gross margin remains thin at 8.5%, below the 9.0% peak in Q4 2024, indicating incomplete margin recovery.
Aramark (ARMK) annual income statement — 14-year revenue, gross profit & net income history
| 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 | 19.85B | 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 % | 11.02% | 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 | 18.54B | 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 | 1.31B | 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 % | 6.58% | 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 | 435.85M | 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 | 227.06M | 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 | 870.7M | 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 % | 4.39% | 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 | 1.39B | 1.27B | 1.14B | 1.03B | 947.72M | 742.14M | 330.28M | 1.48B | 1.41B | 1.31B | 1.24B | 1.13B | 1.09B | 1.06B | 1.11B |
| EBITDA Margin % | 7% | 6.85% | 6.56% | 6.43% | 6.92% | 6.14% | 2.57% | 9.14% | 8.96% | 8.97% | 8.62% | 7.9% | 7.32% | 7.58% | 8.23% |
| EBITDA Growth % | 10.46% | 11.04% | 10.36% | 9.2% | 27.7% | 124.7% | -77.74% | 4.89% | 8% | 5.46% | 9.73% | 4.22% | 2.8% | -4.89% | - |
| D&A (Non-Cash Add-back) | 518.5M | 476.35M | 435.55M | 409.86M | 532.33M | 550.69M | 595.2M | 592.57M | 596.18M | 508.21M | 495.76M | 504.03M | 521.58M | 542.14M | 529.21M |
| EBIT | 858.23M | 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 | -341.02M | -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 | 341.02M | 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 | -353.5M | -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 | 517.21M | 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 % | 2.61% | 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 | 133.49M | 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 % | 25.81% | 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 | 382.91M | 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 % | 1.93% | 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 % | 5.87% | 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) | 383.72M | 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 | 0 | 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) | 1.43 | 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 % | 286.49% | 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 | 268.54M | 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 | 263.59M | 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% | - | - |
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.
Key Metrics
Top Statement Risk
Margin compression from cost inflation
Metrics are mathematically derived from official filings.
Top-Line Momentum Accelerates
Revenue growth accelerated to 9.3% year-over-year in Q3 2026, up from 5.7% in the prior quarter, according to the latest income statement data, suggesting strengthening demand across segments.
The sequential acceleration in revenue growth from 5.7% in Q3 2025 to 9.3% in Q3 2026 indicates that the company is gaining traction, likely driven by new client wins and improved pricing. The consistent positive growth over the past year, despite a dip in Q4 2024, suggests a durable recovery. Investors should monitor whether this pace is sustainable given competitive pressures.
Gross Margin Volatility Persists
Gross margin swung from 8.8% in Q1 2025 to 6.0% in Q1 2026, then rebounded to 8.5% in Q3 2026, as reported in financial statements, reflecting input cost volatility and contract mix shifts.
The wide fluctuation in gross margin, ranging from 5.8% to 9.0% over the past ten quarters, highlights the company's sensitivity to food and labor costs. The recent improvement to 8.5% in Q3 2026 may indicate better cost pass-through or a favorable mix shift toward P&L contracts. However, the structural thinness of margins leaves little room for error, and any acceleration in inflation could compress profitability.
Operating Leverage Remains Elusive
Operating income grew 18% year-over-year in Q3 2026, but operating margin only expanded 40 basis points to 4.3%, based on reported figures, indicating limited operating leverage despite revenue growth.
While revenue growth of 9.3% translated into an 18% increase in operating income, the operating margin remains stubbornly low at 4.3%. This suggests that SG&A and other overhead costs are scaling nearly in line with revenue, preventing meaningful margin expansion. The company's ability to achieve operating leverage will depend on its success in controlling administrative costs and improving contract economics.
Earnings Quality Tempered by One-Time Items
Net income in Q3 2026 rose to $97.7M from $71.8M a year earlier, but EPS growth of 33% was partly aided by a low base, as per income statement data, warranting scrutiny of sustainability.
The 33% EPS growth in Q3 2026 is flattered by a weak prior-year quarter, and the negative EPS in Q4 2024 suggests potential one-time charges or impairments that distort the earnings trend. Stock-based compensation of $19.3M in Q3 2026, while modest, adds to dilution. Investors should focus on operating cash flow to assess the quality of earnings, as net income may be influenced by non-operating items.
Cost Pressures Loom Over Operations
COGS as a percentage of revenue averaged 93.5% over the last four quarters, based on reported figures, leaving a thin gross profit cushion to absorb wage inflation and food cost spikes.
The high COGS ratio underscores the company's vulnerability to input cost inflation, particularly in labor and food. While management has highlighted productivity initiatives, the persistent cost pressures, as noted in recent context, may continue to squeeze margins if legacy contracts lack adequate escalation clauses. The ability to offset these costs through pricing and efficiency gains will be critical to protecting profitability.
Q4 2024 Marks a Turning Point
Q4 2024 saw a 9.9% revenue decline and a negative EPS of -$0.52, as reported in financial statements, representing a trough from which the company has since recovered, signaling a potential inflection.
The sharp contraction in Q4 2024, likely driven by contract losses or one-time charges, appears to have been a low point. Subsequent quarters show a steady recovery in revenue growth and profitability, with Q3 2026 reaching the highest revenue level in the dataset. This inflection suggests that the company's strategic initiatives, including the spin-off of the uniform business, may be gaining traction, but the durability of this recovery remains to be tested.
What Could Invalidate the Base Case
Despite the recent earnings beat, gross margins remain volatile and thin, with Q3 2026 gross margin of 8.5% still below the 9.0% peak in Q4 2024, as per income statement data, suggesting margin recovery is incomplete.
The company's reliance on high-volume, low-margin contracts leaves it exposed to input cost inflation and competitive pricing pressures. While revenue growth has accelerated, the operating margin has not expanded proportionally, indicating that the company may be sacrificing pricing to win contracts. If wage inflation persists and legacy contracts lack escalation clauses, margins could compress further, undermining the earnings growth narrative. Investors should monitor whether the recent margin improvement is sustainable or merely a temporary reprieve.