UniFirst reported earnings per share of $1.98 for the first quarter of fiscal 2026, below analyst projections of $2.05. Net income declined to $34.4 million from $43.1 million in the prior-year period. Diluted EPS fell to $1.89 from $2.31 as planned investments in growth and digital transformation initiatives weighed on profitability.

Consolidated revenue for the quarter reached $621.3 million, surpassing consensus estimates of $614.7 million and reflecting a 2.7% increase versus the same period last year. Growth was driven by organic expansion in the Uniform & Facility Service Solutions segment, where revenues climbed to $565.9 million from $552.8 million, supported by new account acquisitions and improved customer retention.

The company’s operating margin narrowed to 7.3% from 9.2% in the year-ago quarter, reflecting $2.3 million of costs tied to an enterprise resource planning rollout. Adjusted EBITDA margin declined to 13.3% from 15.5%, as increased spending on digital platforms, healthcare claims expenses and legal costs offset lower merchandise expense.

UniFirst ended the quarter with cash, equivalents and short-term investments of $129.5 million and no long-term debt outstanding, resulting in a debt-to-equity ratio of 0.036 and a current ratio of 3.31. The company repurchased $31.7 million of common shares and declared a quarterly dividend of $0.365 per share, marking eight consecutive years of dividend growth. Full-year revenue guidance of $2.475 billion to $2.495 billion and EPS range of $6.58 to $6.98 was reaffirmed.