Why UniFirst Stock Tumbled by 3% Today

Core Viewpoint - UniFirst's profitability was negatively impacted by investment activities in the first quarter, leading to a decline in stock price following the earnings report [1][6]. Financial Performance - For the first quarter of fiscal 2026, UniFirst reported revenue of over $621 million, a year-over-year increase of nearly 3% [2]. - Net income decreased by 20% to $34.4 million, translating to $1.89 per share, which fell short of analyst expectations of $2.10 per share [2][3]. - The revenue growth was attributed to new customer acquisitions and improved retention of existing clients [3]. Market Reaction - Following the earnings release, UniFirst's stock experienced a 3% decline, reflecting investor sentiment regarding the company's performance [1]. Guidance and Outlook - UniFirst maintained its full-year guidance for fiscal 2026, projecting revenue between just under $2.48 billion and almost $2.5 billion, with GAAP earnings expected to be between $6.58 and $6.98 per share [5]. - Comparatively, the previous year's figures were $2.43 billion in revenue and $7.98 per share in earnings [5].