Shares of UniFirst Corporation (NYSE:UNF) slid about 5% in premarket trading on Wednesday after the company posted first-quarter results that missed profit expectations, even as revenue edged past forecasts.
For its fiscal first quarter ended November 29, 2025, the uniform and facility services provider reported adjusted earnings per share of $1.89, below the $2.10 analysts had been expecting. Revenue totaled $621.3 million, slightly ahead of the consensus estimate of $619.82 million and up 2.7% from $604.9 million in the same quarter last year.
Profitability came under pressure during the period, with operating margin contracting to 7.3% from 9.2% a year earlier. UniFirst said the decline reflected planned investments aimed at supporting growth and accelerating digital transformation. As a result, net income fell to $34.4 million from $43.1 million in the prior-year quarter.
Commenting on the results, UniFirst President and Chief Executive Officer Steven Sintros said: “Our first quarter performance was consistent with our expectations and reflects the impact of planned investments designed to accelerate growth and enhance operational efficiency.” He added: “While these initiatives weighed on near-term margins, we believe they position UniFirst for improved profitability over time.”
Within the business, the core Uniform & Facility Service Solutions segment — which generates the majority of group revenue — recorded a 2.4% increase in sales to $565.9 million. However, operating margin in the segment declined to 7.4%, down from 8.8% in the same period last year.
Looking ahead, UniFirst reaffirmed its full-year fiscal 2026 guidance, forecasting revenue in the range of $2.475 billion to $2.495 billion and earnings per share between $6.58 and $6.98. This compares with analysts’ expectations of around $7.00 per share.
The company said it ended the quarter with a solid balance sheet, holding $129.5 million in cash and no long-term debt as of November 29, 2025. During the quarter, UniFirst repurchased $31.7 million of its common stock and declared a quarterly cash dividend of $0.365 per share, extending its streak to eight consecutive years of dividend growth.