Cintas Corporation
CTAS · Nasdaq
Next quarter
Reports Sep 23, 2026, before the open.
Consensus is $1.35 EPS for Aug 2026 across 8 estimates, ranging $1.30 to $1.40.
CTAS May 2026
- 4.03%
- +7.22%
- $1.24
- $1.29
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Highlights
- Earnings beat: Adjusted diluted EPS was $1.29, $0.05 above the $1.24 consensus estimate, a 4.03% surprise; GAAP diluted EPS was $1.26.
- Organic growth: Fourth-quarter revenue rose 8.9% year over year to $2.91 billion, including 8.4% organic growth, versus $2.67 billion a year ago and $2.84 billion in Q3.
- Margin record: Gross margin reached an all-time high of 51.0%, up 130 basis points year over year and matching the prior record; operating margin was 23.2% versus 22.4%.
- Profit growth: Operating income increased 12.7% to $673.0 million, while net income rose 14.0% to $511.0 million; transaction expenses related to UniFirst reduced operating income by $14.0 million.
- Core segment performance: Uniform Rental and Facility Services revenue increased 8.2% to $2.20 billion, while First Aid and Safety Services revenue rose 13.5% to $368.1 million.
- Fiscal-year result: Fiscal 2026 revenue grew 8.9% to $11.26 billion, organic revenue growth was 8.3%, operating income rose 10.5% to $2.61 billion and adjusted EPS increased 12.3% to $4.94.
- Fiscal 2027 outlook: Cintas expects revenue of $12.10 billion to $12.25 billion, or 7.4% to 8.7% growth, and adjusted EPS of $5.36 to $5.50, or 8.5% to 11.3% growth.
- UniFirst process: UniFirst shareholders approved the approximately $5.5 billion acquisition, but both companies received a second request from the FTC; Cintas still expects closing in the second half of calendar 2026.
- Cash returns: Fiscal-year operating cash flow was $2.28 billion and free cash flow was $1.88 billion; Cintas returned $1.65 billion through dividends and share repurchases.
Analysis
Cintas closed fiscal 2026 with a strong fourth quarter: adjusted diluted EPS of $1.29 exceeded the $1.24 consensus by 4.03%, while GAAP EPS was $1.26. Revenue of $2.91 billion increased 8.9% from $2.67 billion a year ago and 2.3% from $2.84 billion in the prior quarter. Operating income rose 12.7% year over year to $673.0 million, compared with $659.9 million in Q3, and net income increased 14.0% to $511.0 million from $448.3 million last year and $502.5 million in Q3.
The print was defined by sustained organic growth and operating leverage. Organic revenue growth was 8.4%, with First Aid and Safety Services growing faster than the core uniform business, while gross margin expanded 130 basis points to a record 51.0% and operating margin improved to 23.2%. UniFirst transaction costs were a $14.0 million quarterly drag, or $0.03 per share, making the adjusted result more representative of underlying earnings. For fiscal 2027, management guided to $12.10 billion-$12.25 billion of revenue and $5.36-$5.50 of adjusted EPS, excluding UniFirst and future acquisitions. The pending transaction remains the key strategic overlay: shareholder approval is complete, but FTC review continues.
Revenue and earnings
Cintas delivered another quarter of broad-based growth. Revenue reached $2.91 billion, up 8.9% year over year and 2.3% sequentially, with organic revenue growth of 8.4%. Uniform Rental and Facility Services accounted for $2.20 billion, while other businesses contributed $707.5 million, up 11.1% year over year. Operating income increased 12.7% to $673.0 million, despite $14.0 million of UniFirst transaction expenses. Net income rose 14.0% to $511.0 million, and GAAP diluted EPS increased 15.6% to $1.26 from $1.09.
- Adjusted earnings: Excluding UniFirst transaction expenses, adjusted diluted EPS was $1.29, up 18.3% from $1.09 and above the $1.24 consensus.
- Sequential progression: Revenue increased from $2.84 billion in Q3, operating income from $659.9 million, net income from $502.5 million and GAAP diluted EPS from $1.24.
Margin expansion
Profitability was the central operating feature of the quarter. Gross margin increased to 51.0% from 49.7% a year ago, matching Cintas's all-time high, while operating margin expanded to 23.2% from 22.4%. Uniform Rental and Facility Services gross margin rose to 50.2% from 49.0%, reflecting more efficient use of in-service inventory and production efficiency gains. Other gross margin improved to 53.4% from 52.0%. Net income margin consequently increased to 17.6% from 16.8%.
- Fiscal-year margin: Full-year gross margin was a record 50.7%, up from 50.0%, and operating margin increased to 23.1% from 22.8%.
- Cost leverage: Quarterly selling and administrative expenses rose 8.9%, in line with revenue growth, while gross profit increased 11.6%.
Segment performance
The core Uniform Rental and Facility Services segment continued to provide scale, while First Aid and Safety Services grew faster. Uniform Rental and Facility Services revenue increased 8.2% to $2.20 billion and operating income rose to $529.5 million from $465.1 million. First Aid and Safety Services revenue increased 13.5% to $368.1 million and operating income rose to $98.6 million from $76.7 million. All Other revenue grew 8.6% to $339.4 million, with operating income increasing to $59.0 million from $55.7 million.
- Annual mix: Fiscal-year Uniform Rental and Facility Services revenue was $8.62 billion, up 8.1%, while First Aid and Safety Services revenue was $1.39 billion, up 14.3%.
- Annual profitability: First Aid and Safety Services operating margin increased to 25.4% from 24.2%; Uniform Rental and Facility Services operating margin rose to 24.1% from 23.5%.
UniFirst transaction
The proposed UniFirst acquisition remains a major strategic and financial consideration, although it did not contribute to reported revenue in the quarter. UniFirst shareholders approved the transaction, valued at approximately $5.5 billion and structured as $155.00 in cash plus 0.7720 Cintas shares per UniFirst share. Cintas and UniFirst each received a second request for additional information from the FTC, an expected step that extends regulatory review. Management continues to expect closing in the second half of calendar 2026.
- Reported cost: UniFirst transaction expenses were $14.0 million in the quarter and $15.1 million for fiscal 2026, with the quarterly cost reducing diluted EPS by $0.03.
- Guidance treatment: Fiscal 2027 revenue and adjusted EPS guidance excludes any UniFirst contribution and excludes non-recurring transaction costs.
Outlook and capital
Management expects fiscal 2027 growth to remain substantial before any UniFirst contribution. Revenue guidance of $12.10 billion-$12.25 billion implies 7.4%-8.7% growth from fiscal 2026 revenue of $11.26 billion, while adjusted EPS guidance of $5.36-$5.50 implies 8.5%-11.3% growth from $4.94. The outlook assumes one additional workday, constant foreign exchange, no future acquisitions and no future share-buyback impact.
- Cash generation: Operating cash flow increased 5.1% to $2.28 billion, capital expenditures were $395.1 million and free cash flow was $1.88 billion versus $1.76 billion in fiscal 2025.
- Shareholder returns: Cintas returned $1.65 billion in fiscal 2026 through dividends and buybacks, including $952.1 million of share repurchases and $701.5 million of dividends.
