Aramark (ARMK) is likely to benefit from faster data center growth, strong new-business wins, high customer retention and steady demand across its core food and support service operations, Truist Securities said Monday in a report.
Truist expects Aramark to report slightly better-than-expected fiscal Q3 revenue and adjusted operating income, though major contributions from its Nexus data center business may take another two to three quarters to show in results.
Aramark may finish fiscal 2026 near the top of its 7% to 9% organic growth target as new contracts, strong retention and early Nexus business add to growth, the report said.
Truist estimates a $39 billion US market for Nexus and said Aramark's second AI data center customer may eventually generate hundreds of millions of dollars in annual revenue if multiple sites and services are added.
Truist raised its price target on Aramark stock to $70 from $58 and maintained its buy rating. Fiscal Q3 results are expected Aug. 11.
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