Cintas Corporation
CTAS · Nasdaq
Next quarter
Reports Dec 17, 2026.
Consensus is $1.36 EPS for Nov 2026 across 9 estimates, ranging $1.34 to $1.39.
CTAS Aug 2026
- 2.96%
- $1.35
- $1.39
- —
- $3.01B
Reported results
- $3.01B
- 51.54%
- $711.89M
- 23.62%
- $551.71M
- $1.36
Highlights
- Record revenue: Fiscal Q1 2027 revenue rose 10.9% year over year to $3.01 billion, the first quarter above $3 billion; organic growth was 8.9%.
- EPS beat: Adjusted diluted EPS was $1.39, up 15.8% year over year and 2.96% above the $1.35 consensus; GAAP diluted EPS was $1.36, including $0.03 per share of UniFirst transaction costs.
- Margin expansion: Gross margin increased 120 basis points to a record 51.5%, while operating margin reached a record 23.6%, up 90 basis points year over year after excluding the 50-basis-point UniFirst expense impact.
- Guidance raised: Fiscal 2027 revenue guidance increased to $12.15 billion–$12.27 billion and adjusted diluted EPS guidance to $5.45–$5.54; the EPS range implies 10.3%–12.1% growth.
- Volume-led demand: Management cited new-customer wins, retention and cross-selling as growth drivers, with pricing consistent with prior years; more than two-thirds of new business comes from customers previously managing needs themselves.
- Growth across services: Organic growth was 8.0% in Uniform Rental and Facility Services, 14.2% in First Aid and Safety, 9.2% in Fire Protection and 9.6% in Uniform Direct Sale.
- Cash and shareholder returns: Operating cash flow was $572.3 million and free cash flow was $464.8 million; Cintas repurchased $544.7 million of stock through September 22 and paid a $208.8 million dividend on September 15.
- UniFirst pending: Cintas said it remains engaged with the FTC and expects the proposed acquisition to close before the end of calendar 2026; the quarter included $14.4 million of related transaction expense.
Analysis
Cintas opened fiscal 2027 with record quarterly revenue of $3.014 billion, up 10.9% from $2.718 billion a year earlier, and organic growth of 8.9% after adjusting for workdays, acquisitions and foreign exchange. Adjusted diluted EPS of $1.39 exceeded the supplied $1.35 consensus by 2.96% and grew 15.8% year over year; reported GAAP EPS was $1.36, up 13.3%, after $0.03 per share of UniFirst costs. Against the latest supplied comparison, Q3 FY2026, revenue was $2.84 billion and diluted EPS was $1.24; the supplied history does not include fiscal Q4 2026, so it does not permit a direct sequential comparison with the immediately preceding quarter.
The defining feature was growth alongside strong operating leverage: gross margin reached a record 51.5%, 120 basis points above last year, and operating margin was a record 23.6%, up 90 basis points excluding UniFirst costs. Management attributed demand chiefly to new business, retention and cross-selling rather than higher pricing, while noting a favorable extra workday contributed 50 basis points to operating margin. With that start, Cintas raised its full-year revenue outlook to $12.15 billion–$12.27 billion and adjusted EPS outlook to $5.45–$5.54. The guidance excludes UniFirst’s expected contribution and future acquisitions; the proposed deal remains under regulatory review.
Organic growth drivers
Growth was broad across service lines and, according to management, increasingly volume-led. Cintas described a sizable opportunity to convert businesses that currently manage uniforms and facility needs themselves, expand services within existing accounts, and retain customers. More than two-thirds of new business comes from these “no-programmers.” Management said pricing was consistent with prior years and that new business, retention and cross-selling each improved.
- Uniform Rental and Facility Services: Organic revenue growth was 8.0%; segment revenue increased 9.7% to $2.295 billion. Gross margin rose 110 basis points to a record 50.8%.
- First Aid and Safety: Organic growth was 14.2%, and gross margin increased 80 basis points year over year to 57.6%. Management pointed to new-business productivity, retention and cross-selling.
- Fire Protection and Uniform Direct Sale: Organic growth was 9.2% and 9.6%, respectively. Fire Protection’s gross margin was 52.8%, with management cautioning that favorable workday and revenue mix helped and that technician, leadership and footprint investments can make margins vary.
Margin expansion
Gross profit grew 13.7% to $1.55 billion, faster than revenue, lifting consolidated gross margin to 51.5% from 50.3%. Operating income rose 15.2% to $711.9 million, while operating margin expanded to 23.6% from 22.7%. Excluding $14.4 million of UniFirst transaction expenses, operating income growth was 17.6%; management said those expenses reduced margin by 50 basis points, offsetting the 50-basis-point benefit from an extra workday. Selling and administrative expense was 27.4% of revenue, a 10-basis-point improvement year over year. Management linked leverage to growth and technology, automation and operating-efficiency investments.
Raised fiscal outlook
Management raised its full-year fiscal 2027 revenue range from $12.10 billion–$12.25 billion to $12.15 billion–$12.27 billion, and adjusted diluted EPS from $5.36–$5.50 to $5.45–$5.54. The revised revenue range represents 7.9%–8.9% growth over fiscal 2026; adjusted EPS guidance implies 10.3%–12.1% growth. Management expects 32%–34% incremental margins at the mid-to-high revenue range and double-digit operating-margin expansion. It also warned that quarterly comparisons will vary: Q1 had an extra workday, Q2 has the same number as a year ago, Q3 has one fewer and Q4 one more. For the year, the extra day is expected to add 40–50 basis points to revenue growth, 10–15 basis points to operating margin and 100–125 basis points to incremental margin. Guidance assumes constant foreign exchange and excludes UniFirst and future acquisitions.
UniFirst transaction
The proposed UniFirst acquisition remains subject to regulatory clearances in the U.S. and Canada and other closing conditions. Cintas said it continues to engage with the FTC and expects completion before the end of calendar 2026, but declined to provide further process details. The quarter carried $14.4 million in transaction expenses, or $0.03 per diluted share; adjusted EPS and fiscal-year adjusted EPS guidance exclude these costs. The company expects fiscal 2027 net interest expense of about $103 million, including approximately $4 million of expense from amortizing bridge-loan fees related to the transaction.
Cash and capital returns
Operating cash flow was $572.3 million, versus $414.5 million in the year-ago quarter; after $107.5 million of capital expenditures, free cash flow was $464.8 million, compared with $312.5 million. Capital spending was 3.6% of sales and focused on technology, automation, capacity and infrastructure. Cintas paid an aggregate $208.8 million quarterly dividend on September 15 and repurchased $544.7 million of shares during the quarter and through September 22. The company said its increased dividend was up 15.6% from the prior level.
