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Aramark posted a surprising Q4 (Sep) miss on both EPS and revenue — its first EPS miss in five years — as onboarding delays for an unusually large wave of new contracts pushed revenue out of the quarter. FY26 guidance was mixed, with midpoint EPS below expectations but revenue slightly above.

Key Highlights

• Onboarding an unprecedented volume of new clients caused revenue timing shifts and drove the miss.
• FY25 gross new wins: $1.6 bln, +12% yr/yr, including the largest FSS US contract ever.
• Client retention: strong at 96.3%, with multiple business lines above that level. Net New business reached 5.6% of prior-year revenue.
• Q4 organic revenue: +14% yr/yr, driven by new wins, retention, and base volume, partly offset by onboarding timing.
• Strong results in Collegiate Hospitality, improved Healthcare performance, and solid stadium attendance.

Market Reaction: Shares rebounded off early lows during the call as management emphasized that the miss stemmed from growth-related onboarding timing, not weakening demand.

Briefing.com Analyst Insight

Aramark's rare EPS miss is less troubling when viewed through the lens of the underlying driver: too much new business arriving at once. While the delay in onboarding pressured Q4 results, the magnitude of gross new wins — $1.6 bln, including record-size contracts — signals that demand for Aramark's offerings is both broad and accelerating. High retention at 96%+ reinforces that the company is winning not just new logos but also maintaining its incumbent base.

The FY26 guide wasn't stellar, but the top-line midpoint exceeding expectations is notable, especially given the strong new win pipeline. We view the miss as a timing issue rather than an erosion in fundamentals. That said, Aramark's execution in managing this unprecedented volume of onboarding will be a key near-term watch item. Given strong pipeline visibility, industry-leading retention, and momentum across Collegiate, Healthcare, and Sports, we see the long-term setup as favorable. But with the stock already rebounding on the "good problem to have" narrative, upside from here may be more measured until Aramark demonstrates consistent margin flow-through on its record new business influx.