UniFirst Corp (NYSE: $UNF) is a uniform manufacturing company based in Wilmington, Massachusetts, that manufactures, sells, and rents uniforms and protective gear. On Wednesday, January 7, 2026, it released its Q1 results. Here is a deep dive into those results.
UniFirst Q1 Results
For Q1, UniFirst reported revenue of $621.3 million, a 2.7% YoY increase. Its operating margin dipped to 7.3% compared to 9.2% the same time last year, due to strategic investments. Net income for Q1 came in at $34.4 million, a decline from $43.1 million last year. The company reported diluted EPS of $1.89 compared to $2.31 last year.
Other Highlights
Its Uniform & Facility Service Solutions segment reported a 2.4% YoY increase to $565.9 million, driven by organic growth. Its First Aid & Safety Solutions segment reported a 15.3% YoY increase in revenue to $30.2 million, its Other segment, which includes nuclear gear, experienced a 2.9% YoY decline to $25.2 million.
The company reported an increase in new customer acquisitions and better retention rates, driven by strategic investments in growth and digital transformation. However, the investments also led to increased legal costs and healthcare claims that were partially offset by lower merchandise costs.
The company continued its share buyback program, buying $31.7 million worth of shares in Q1, with $8.9 million remaining under its current buyback program. It declared a dividend of $0.365, which is the eighth consecutive year of dividend growth. It ended Q1 with $129.5 million in cash and cash dividends, and no long-term outstanding debt.
Fiscal 2026 Outlook
The company maintained its fiscal 2026 guidance of $2.475 billion to $2.495 billion in revenue, and diluted EPS of $6.58 to $6.98. Its guidance includes an estimated $7 million in costs directly linked to its Kenya Initiative, which it expects to expense in fiscal 2026.
Cintas Acquisition Offer
On December 22, UniFirst announced it had received an unsolicited offer from rival Cintas for $275 per share for its outstanding shares. At the time, the offer represented a 64% premium on UniFirst’s 980-day average price as of December 11, 2025. The UniFirst board is currently reviewing the offer. In November 2024, Cintas had sent a similar offer to the UniFirst board. Cintas’ offer valued UniFirst at around $5.2 billion against its current market cap of $3.57 billion.
Market Performance
Following the earnings dip, UNF shares fell 2.88% to $197.30 as of 2:52 PM in New York. Year to date, UNF shares are up 2.88%, while over the past month, the shares are up 8.87%.
The stock has gained 16.28% in the past six months, and dipped 3.61% in the past 12 months. UniFirst shares are trading above the 50- and 200-day moving average of $171.95, and $175.09, respectively.
Analysts give UNF shares a moderate sell rating, they forecast an average price of $162.33, which is a 17.898% downside. The analysts forecast a wide range of prices, with a high of $182 and a low of $145.
Is UniFirst A Buy in 2026?
If the Cintas bid is accepted, it would represent one of the most synergistic buys in recent history. The price is compelling, with a massive premium on offer. While the UniFirst board has not accepted the offer, market analysts believe it has a good chance of going through. With the massive upside potential once a deal is potentially concluded, adding UNF shares to your portfolio could potentially lead to some great short-term gains.
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