Unifirst (NYSE:UNF) Announces Earnings Results, Misses Estimates By $0.28 EPS

Unifirst (NYSE:UNF) released its earnings results on Wednesday. The textile maker reported $1.89 EPS for the quarter, missing the consensus estimate of $2.17 by ($0.28), Briefing.com reports. Unifirst had a net margin of 6.10% and a return on equity of 7.11%. During the same quarter in the prior year, the business earned $2.31 earnings per share. The business’s revenue for the quarter was up 2.7% compared to the same quarter last year. Unifirst updated its FY 2026 guidance to 6.580-6.980 EPS.

Here are the key takeaways from Unifirst’s conference call:

• Revenues rose to $621.3 million, up 2.7% year-over-year, with Uniform & Facility organic growth of 2.4% and First Aid & Safety revenue up 15.3%, driven by van operations and small acquisitions.
• Profitability declined as Q1 operating income fell to $45.3 million (from $55.5M), Adjusted EBITDA to $82.8 million (from $94M), and EPS to $1.89 (from $2.31) due to planned growth investments plus higher healthcare claims and legal costs.
• Management reaffirmed full-year FY2026 guidance of $2.475B–$2.495B revenue and EPS of $6.58–$6.98, noting guidance assumes roughly $7M of key-initiative costs and excludes future share buybacks.
• Company is investing in a tiered sales/service model, the UniFirst Way operating framework, and an ERP/digital transformation expected to drive margin inflection (management expects clearer benefits in 2027), but near-term margin pressure will continue.
• Balance sheet and capital return actions remain supportive: $129.5 million cash/short-term investments, no long-term debt, ~$31.7M of share repurchases in Q1 (~$77M over two quarters), an increased dividend, and four small First Aid acquisitions.

Unifirst Trading Down 3.0%

NYSE:UNF traded down $6.08 during mid-day trading on Wednesday, hitting $197.07. 200,811 shares of the company’s stock were exchanged, compared to its average volume of 213,488. Unifirst has a fifty-two week low of $147.66 and a fifty-two week high of $232.14. The firm has a market capitalization of $3.57 billion, a P/E ratio of 24.70 and a beta of 0.72. The company has a 50 day simple moving average of $173.84 and a 200-day simple moving average of $172.89.

Unifirst Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, January 2nd. Investors of record on Friday, December 5th were given a dividend of $0.365 per share. The ex-dividend date was Friday, December 5th. This represents a $1.46 annualized dividend and a yield of 0.7%. This is a boost from Unifirst’s previous quarterly dividend of $0.35. Unifirst’s dividend payout ratio is 18.30%.

Key Unifirst News

Here are the key news stories impacting Unifirst this week:

• Positive Sentiment: Top-line stability: Q1 revenue grew modestly (~+2.7% YoY) and was essentially in line with estimates; gross profit was slightly higher year-over-year, showing demand held up. Unifirst Corporation (UNF) Releases Q1 2026 Earnings
• Positive Sentiment: Recent quarter sales/seasonal beats: some outlets flagged quarterly sales that topped estimates, which supports the view that demand is not collapsing. UniFirst’s (NYSE:UNF) Q4 CY2025 Sales Top Estimates
• Neutral Sentiment: Company release: UniFirst provided a formal press release with detailed Q1 results and its FY2026 guidance (EPS range and revenue point), useful for modeling but the guidance disappointed consensus EPS. UniFirst Announces Financial Results for the First Quarter of Fiscal 2026
• Neutral Sentiment: Revenue guidance was left roughly in line with consensus (company reiterated a ~ $2.5B revenue level), so upside/ downside risk to top-line forecasts is limited based on the guidance disclosure.
• Negative Sentiment: EPS miss and margin compression: reported quarterly EPS missed Street estimates (reports show ~ $1.89–$1.98 vs. estimates around $2.08–$2.17), with operating profit and net income down materially YoY, signaling margin pressure. UniFirst Q1 Earnings Details
• Negative Sentiment: Guidance shortfall: FY2026 EPS guidance (6.580–6.980) is below consensus (~7.03), which is a primary driver of the stock decline as investors re-rate forward earnings.
• Negative Sentiment: Cash flow and cost pressure: operating cash flow weakened sharply while capex rose, reducing near-term cash generation and raising concerns about margins and liquidity. Unifirst Corporation (UNF) Releases Q1 2026 Earnings
• Negative Sentiment: Market reaction: coverage and market summaries note shares fell after the release and guidance, reflecting the combination of the EPS miss and conservative guidance. US Stocks Edge Higher; UniFirst Shares Fall After Q1 Results

Hedge Funds Weigh In On Unifirst

A number of hedge funds have recently modified their holdings of the business. Geneos Wealth Management Inc. grew its stake in shares of Unifirst by 474.1% in the first quarter. Geneos Wealth Management Inc. now owns 155 shares of the textile maker’s stock worth $27,000 after purchasing an additional 128 shares during the last quarter. EverSource Wealth Advisors LLC raised its position in Unifirst by 378.1% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 153 shares of the textile maker’s stock worth $29,000 after purchasing an additional 121 shares during the last quarter. Danske Bank A S acquired a new position in Unifirst during the 3rd quarter worth about $33,000. Brown Brothers Harriman & Co. grew its position in shares of Unifirst by 1,244.0% in the 3rd quarter. Brown Brothers Harriman & Co. now owns 336 shares of the textile maker’s stock valued at $56,000 after buying an additional 311 shares during the last quarter. Finally, Advisory Services Network LLC bought a new stake in shares of Unifirst in the 3rd quarter valued at about $57,000. Institutional investors and hedge funds own 78.17% of the company’s stock.

Analyst Ratings Changes

Several analysts recently weighed in on UNF shares. Weiss Ratings restated a “hold (c)” rating on shares of Unifirst in a research report on Wednesday, October 8th. UBS Group set a $182.00 target price on shares of Unifirst in a report on Thursday, October 23rd. Barclays decreased their price target on shares of Unifirst from $152.00 to $145.00 and set an “underweight” rating on the stock in a report on Thursday, October 23rd. Finally, Zacks Research upgraded shares of Unifirst from a “strong sell” rating to a “hold” rating in a research report on Monday, December 22nd. Four investment analysts have rated the stock with a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat, Unifirst presently has an average rating of “Reduce” and a consensus target price of $174.75.

Unifirst Company Profile

UniFirst Corporation (NYSE: UNF) is a leading provider of customized uniform rental and facility service programs in North America and Europe. The company specializes in the rental, laundering and maintenance of workwear, corporate apparel and protective garments for a broad range of industries, including manufacturing, automotive, hospitality, healthcare and food processing. UniFirst also offers a suite of facility service products such as entrance mats, restroom supplies, wipers, mops and hygienic services designed to help customers maintain clean and safe environments.

In addition to its core uniform rental business, UniFirst has expanded its product portfolio to include safety and first-responder gear, flame-resistant clothing, high-visibility apparel and personal protective equipment (PPE).