Aramark revenue rises 15%, launches Nexus™ platform for hyperscale infrastructure

Aramark (NYSE: ARMK) posted second-quarter revenue growth of 15% year-over-year, with organic revenue increasing by 12%.

The performance was driven by broad-based gains in both its Food and Support Services (FSS) United States and International segments.

A key operational highlight was the company reaching a milestone $1 billion in net new business wins for the fiscal year to date, supported by a client retention rate exceeding 98%.

The company reported a 26% increase in operating income, while adjusted operating income (AOI) grew 24%.

Profitability was bolstered by the deployment of new proprietary technology that enabled productivity gains and effective above-unit cost management.

On a per-share basis, GAAP EPS jumped 65% to $0.38, and adjusted EPS rose 40% to $0.49.

Management noted that a calendar shift provided a benefit of approximately 3% to revenue and 12% to AOI growth during the period.

In a strategic move to capture the surging demand for artificial intelligence infrastructure, the company announced the launch of Aramark Nexus™.

This new platform is specifically designed to provide hospitality, facilities management, and workforce support for hyperscale AI data centers and other complex, remote operating environments.

Aramark confirmed it has already commenced a multi-year agreement with a top-tier global hyperscaler and maintains a "significant pipeline" of prospective contracts in this high-margin sector.

Meanwhile, Aramark’s financial position strengthened considerably, with net cash from operating activities rising 56% to $400 million.

Free cash flow surged 116% to $305 million, leaving the company with over $1.4 billion in total cash availability.

During the quarter, the firm utilized this liquidity to proactively repay $55 million of its 2030 Term Loans and repurchased approximately $25 million of its common stock.