Q1 26 EPS
$0.10
BEAT +5.82%
Est. $0.09
Q1 26 Revenue
$663.4M
MISS 1.64%
Est. $674.5M
vs S&P Since Q1 26
+57.0%
BEATING MARKET
VSTS +65.2% vs S&P +8.3%
Market Reaction
Did VSTS Beat Earnings? Q1 2026 Results
Vestis Corporation delivered a mixed fiscal Q1 2026, beating adjusted earnings expectations while falling short on the top line as the uniform services company navigates a broad operational turnaround. The company posted adjusted EPS of $0.10, edging… Read more Vestis Corporation delivered a mixed fiscal Q1 2026, beating adjusted earnings expectations while falling short on the top line as the uniform services company navigates a broad operational turnaround. The company posted adjusted EPS of $0.10, edging past the $0.09 consensus estimate by 5.82%, but revenue of $663.39 million trailed the $674.48 million analyst expectation by 1.64% and slid 3.0% year over year. The shortfall was driven primarily by a $17.90 million drop in rental revenue tied to a product mix shift within workplace supplies toward lower-revenue-per-pound linen products, which pulled revenue per pound from $1.41 to $1.37. On a GAAP basis, Vestis recorded a net loss of $6.39 million, though sequential improvement from Q4 2025 was a notable theme, with Adjusted EBITDA climbing to $70.38 million from $64.66 million the prior quarter. Analysts lifted their consensus price target by roughly 29% following the print. Management reaffirmed its fiscal 2026 outlook, guiding for revenue flat to down 2% and Adjusted EBITDA of $285 million to $315 million, underpinned by a transformation plan targeting at least $75 million in annual cost savings by year-end.
Key Takeaways
- • Revenue per pound decline of $0.04 driven by product mix shift toward linen and linen-adjacent products with lower revenue per pound
- • Pre-transformation commercial practices that are no longer in effect contributed to revenue per pound decline
- • Cost per pound improvement of $0.02 per pound on flat volume year-over-year
- • Adjusted operating expenses declined $10 million or 2% from cost of service and SG&A improvements
- • 7% improvement in plant productivity versus Q1 2025
- • 3% improvement in on-time deliveries versus Q1 2025
- • 12% reduction in customer complaints versus Q1 2025
- • Working capital improvements contributed $12.7 million benefit to cash flow
- • Business retention rate of 91.2%
VSTS YoY Financials
Q1 2026 vs Q1 2025, source: SEC Filings
VSTS Revenue by Segment
With YoY comparisons, source: SEC Filings
VSTS Revenue by Geography
With YoY comparisons, source: SEC Filings
“Our first quarter results reflect a solid start to our fiscal 2026 and strong execution against our business transformation plan focused on unlocking operating leverage while elevating the customer experience. Based on our performance to date and initiatives underway, we are reaffirming our fiscal 2026 outlook and expect continued sequential improvements in quarterly Adjusted EBITDA throughout the year.”
— Jim Barber, Q1 2026 Earnings Press Release
VSTS Earnings Trends
VSTS vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
VSTS EPS Trend
Earnings per share: estimate vs actual
VSTS Revenue Trend
Quarterly revenue: estimate vs actual
VSTS Quarterly Results
5 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q2 26 BEAT | $0.08 | $0.16 | +92.08% | $659.4M | +0.53% |
| Q1 26 BEAT | $0.09 | $0.10 | +5.82% | $663.4M | -1.64% |
| Q4 25 MISS FY | $0.06 | $0.03 | -48.28% | $712.0M | +3.09% |
| FY Full Year | $0.23 | $0.25 | +7.85% | $2.73B | +0.91% |
| Q3 25 MISS | $0.07 | $-0.01 | -114.49% | $673.8M | -0.07% |
| Q2 25 MISS | $0.15 | $-0.05 | -133.81% | $665.2M | -3.70% |