Vestis (NYSE: VSTS) is a provider of uniforms and workplace supplies. The company operates in a competitive market, offering services like uniform rentals and facility management. Vestis is a recent spin-off from Aramark and is currently undergoing a strategic transformation to improve its business operations.
On May 12, 2026, analyst firm William Blair upgrades its rating for Vestis to Outperform. This change from its previous Market Perform rating comes as the stock trades at $12.00. The upgrade follows the release of the company's strong second-quarter financial results.
The company reports impressive quarterly earnings of $0.16 per share. As highlighted by Zacks, this figure significantly beats the consensus estimate of $0.09 per share. This performance marks a strong recovery from the loss of $0.05 per share recorded in the same period a year ago.
Vestis posts second-quarter revenues of $659.4 million, which is slightly down from the prior year's $665.25 million. The company generates $58.3 million in cash from operations, allowing it to repay $34 million of its debt. This demonstrates solid operational management during its transformation.
Following these results, Vestis increases its full-year 2026 outlook. As reported by Business Wire, the forecast for adjusted EBITDA, a key measure of profitability, is raised by $10 million. The market responds positively, with the stock price increasing by 29.03% to $12.00 and setting a new 52-week high.
