Zacks upgrades UniFirst stock to Strong Buy after earnings miss

Published on 10/25/2026 at 14:04 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Zacks upgraded UniFirst on October 24, 2026. UniFirst stock posted USD 645.0 million revenue and USD 1.90 earnings per share.

Earnings and deal timetable

Zacks upgraded UniFirst to Strong Buy on October 24, 2026.
Fourth-quarter revenue reached USD 645.0 million, while diluted earnings per share fell to USD 1.90.
December 11, 2026 is the earliest agreed closing date under the FTC timing pact.

UNF, US9047081040, Illustration mit AI erstellt.

Zacks Research upgraded UniFirst to Strong Buy from Hold on October 24, 2026, shortly after the uniform provider reported fourth-quarter fiscal 2026 results. According to MarketBeat, the upgrade came as UniFirst's revenue exceeded expectations while earnings per share missed the consensus forecast.

Results show growth and pressure

UniFirst reported fourth-quarter revenue of USD 645.0 million for the period ended August 29, 2026, up 5.0 percent from USD 614.4 million a year earlier. Diluted earnings per share fell to USD 1.90 from USD 2.23 and missed the USD 2.04 consensus estimate, according to Morningstar and Investing.com.

The margin picture was weaker. Operating margin declined to 6.5 percent from 8.1 percent, while adjusted EBITDA margin improved to 14.7 percent from 14.3 percent. Transaction-related costs of USD 14.4 million reduced diluted earnings per share by USD 0.71, giving investors a concrete explanation for the profit pressure.

Three events define the deal path

On March 10, 2026, UniFirst agreed to be acquired by Cintas in a USD 5.5 billion transaction involving USD 155.00 in cash and 0.7720 Cintas shares per UniFirst share, as Investing.com reported. On October 2, 2026, UniFirst and Cintas agreed with the FTC not to close before December 11, 2026 unless the agency ended its investigation earlier. On October 21, 2026, UniFirst reported USD 2.523 billion in fiscal 2026 revenue, up 3.7 percent, while net income fell to USD 109.5 million from USD 148.3 million, according to Morningstar.

What dates matter for the transaction?

December 11, 2026 is the next dated milestone because it marks the earliest closing date permitted by the FTC timing agreement. The companies also expect completion before the end of calendar year 2026, subject to regulatory approval and other closing conditions, according to Morningstar. UniFirst has stopped providing financial guidance and will not host quarterly conference calls while the transaction remains pending.

Deal approval remains the stock driver

For UniFirst investors, the earnings report separates operating performance from transaction timing. Revenue growth held at 5.0 percent in the latest quarter, but the lower operating margin and USD 14.4 million transaction cost show why the Cintas process remains central to the investment case.

UniFirst is listed on the NYSE under ticker UNF. Its business provides uniform rental, facility service, first aid and safety products across North America.

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