Q2 26 EPS
$0.16
BEAT +92.08%
Est. $0.08
Q2 26 Revenue
$659.4M
BEAT +0.53%
Est. $656.0M
vs S&P Since Q2 26
+57.0%
BEATING MARKET
VSTS +58.5% vs S&P +1.5%
Market Reaction
Did VSTS Beat Earnings? Q2 2026 Results
Vestis Corporation delivered a notably strong fiscal second quarter for 2026, posting adjusted diluted EPS of $0.16 against a consensus estimate of $0.08, a beat of 92.08%, while revenue of $659.44 million edged past the $655.98 million consensus by … Read more Vestis Corporation delivered a notably strong fiscal second quarter for 2026, posting adjusted diluted EPS of $0.16 against a consensus estimate of $0.08, a beat of 92.08%, while revenue of $659.44 million edged past the $655.98 million consensus by 0.53% despite slipping 0.9% year over year. The clearest driver behind the outperformance was the company's strategic business transformation plan, which management now credits with roughly $15.00 million in realized savings through Q2 and has since upgraded to an estimated $50.00 million in full-year in-year benefit, up from $40.00 million prior. GAAP net income swung to $2.60 million from a net loss of $27.83 million a year ago, as plant productivity climbed 11% and free cash flow strengthened to $45.56 million from negative $6.85 million. The stock's sharp post-earnings rally has drawn attention to whether the turnaround can sustain momentum. Vestis raised its full-year adjusted EBITDA guidance to a range of $295.00 million to $325.00 million and nearly doubled its free cash flow outlook to $120.00 million to $150.00 million, signaling growing confidence in the durability of its cost-driven recovery.
Key Takeaways
- • Strategic business transformation plan delivering $15 million in cost savings through Q2, now expected to deliver $50 million in FY2026 (up from $40 million)
- • Cost per pound improved by $0.02 or 2% year-over-year to $1.22
- • Plant productivity improved 11% year-over-year
- • On-time deliveries improved 270 basis points year-over-year
- • Customer complaints reduced 4% year-over-year
- • Revenue per pound flat year-over-year, halting multi-quarter decline trend
- • Adjusted operating expenses declined $17.7 million or 2.9% year-over-year
- • SG&A improvements of $13.5 million from transformation actions
- • $12 million cash flow benefit from lower rental merchandise in service
- • Operating leverage per pound improved by $0.02 year-over-year
VSTS Forward Guidance & Outlook
Vestis raised its fiscal 2026 outlook. Adjusted EBITDA is now expected in the range of $295 million to $325 million (up $10 million at the midpoint from prior guidance of $285M-$315M). Free Cash Flow is now expected in the range of $120 million to $150 million (up $80 million at the midpoint from prior guidance of $50M-$60M). Revenue is still expected to be flat to down 2% versus normalized fiscal 2025 revenue of $2.683 billion, excluding the impact of the additional operating week. Sequential quarterly Adjusted EBITDA growth is expected at approximately 5% in Q3 2026 and between 5% and 10% in Q4 2026. Capital expenditures are expected between $60 million and $70 million for the full year. Cash paid for transformation expenses including severance is expected between $30 million and $35 million for the full year. The strategic business transformation plan now estimates approximately $50 million in in-year fiscal 2026 benefit (up from $40 million), with at least $75 million in annual operating cost savings expected by end of fiscal 2026.
VSTS YoY Financials
Q2 2026 vs Q2 2025, source: SEC Filings
VSTS Revenue by Segment
With YoY comparisons, source: SEC Filings
VSTS Revenue by Geography
With YoY comparisons, source: SEC Filings
“During the second quarter, Vestis continued to advance its strategic transformation through targeted initiatives aimed at enhancing operating leverage and profitability. We realized the early benefits of these actions, with Adjusted EBITDA increasing year-over-year, supported by the first quarter of improved operating leverage since becoming a standalone public company. Our focus on service, operating performance, and cost discipline is delivering results, culminating in a return to profitable growth. Given this momentum, we are raising our full-year fiscal 2026 Adjusted EBITDA and Free Cash Flow guidance, and reaffirming our expectations for sequential improvements in Adjusted EBITDA as we move through the year.”
— Jim Barber, Q2 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% |