When you think about who benefits from the AI boom, food service companies probably aren't the first names that come to mind. But Aramark (ARMK) is changing that narrative. The company's shares surged to a 52-week high Tuesday after it reported fiscal second-quarter results that beat Wall Street expectations, and the secret sauce? Hyperscale AI data centers.
Aramark reported adjusted earnings of 49 cents per share, topping the analyst consensus of 47 cents. Revenue jumped 15% year over year to $4.91 billion, ahead of the $4.76 billion estimate. The growth was broad-based, with net new business wins and expansion across its existing portfolio driving the numbers. Foreign currency translation added about $101 million to quarterly revenue.
Digging into the segments: Food and Support Services United States revenue rose 12% from a year ago, while the International segment climbed 21%.
But the real headline is Aramark's foray into feeding the AI revolution. CEO John Zillmer highlighted the company's entry into the hyperscale AI data center market with the launch of Aramark Nexus. "We're excited about our entry into the hyperscale AI data center market with the launch of Aramark Nexus where we bring proven expertise in highly complex operations and an established competitive advantage," Zillmer said.
He added, "As we execute on our new multi-year engagement with a top global hyperscaler, this client is expected to become the largest in our portfolio. We believe there is substantial growth potential with this client and other hyperscalers, combined with the existing sales momentum occurring throughout our broader portfolio."
In other words, the same operational expertise Aramark uses to run cafeterias at universities and hospitals is now being applied to the massive, complex campuses of AI data centers. And it's paying off.
Cash flow is also looking healthier. Net cash provided by operating activities hit $400 million in the quarter, up 56% from the same period last year. The board approved a quarterly dividend of 12 cents per share, payable June 3.
Looking ahead, Aramark reaffirmed its fiscal 2026 adjusted earnings guidance of $2.18 to $2.28 per share, with analysts currently expecting $2.22. The company expects organic revenue growth to land at the high end of its previously projected 7% to 9% range, and adjusted operating income growth is still expected to come in between 12% and 17%.
Shares were up 8.73% at $48.45 at the time of publication Tuesday, hitting a new 52-week high. It seems investors are hungry for more than just cafeteria food.
