UniFirst Corporation (NYSE:UNF) reported its fiscal first quarter 2026 results for the period ended November 29, 2025, with revenues increasing 2.7% year-over-year to $621.3 million.
Net income declined to $34.4 million, or $1.89 per diluted share, compared to $43.1 million, or $2.31 per diluted share, in the prior-year quarter.
Operating margin contracted to 7.3% from 9.2%, while adjusted EBITDA margin fell to 13.3% from 15.5%.
The company attributed the margin pressure to planned investments and costs associated with its digital transformation initiatives.
By segment, Uniform and Facility Services revenues rose to $565.9 million, reflecting 2.4% organic growth.
First Aid and Safety revenues grew strongly to $30.2 million, up 15.3% year-over-year, while Other revenues decreased 2.9% to $25.2 million.
UniFirst ended the quarter with a solid balance sheet, holding $129.5 million in cash and carrying no long-term debt.
During the quarter, the company repurchased $31.7 million of its shares, leaving approximately $8.9 million remaining under its current authorization.
The company also reaffirmed its full-year fiscal 2026 guidance, projecting revenues between $2.475 billion and $2.495 billion and diluted earnings per share in the range of $6.58 to $6.98.