CINTAS CORP (CTAS): Results of Operations and Financial Condition
CINTAS CORP (CTAS) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99 FOR IMMEDIATE RELEASE September 23, 2026 Cintas Corporation Announces Fiscal 2027 First Quarter Results CINCINNATI, September 23, 2026 -- Cintas Corporation (Nasdaq: CTAS) today reported results for its fiscal 2027 first quarter ended August 31, 2026. Revenue for the f
How this was made
The 30-second read
Why it matters
The raised guidance suggests stronger earnings momentum, likely prompting buying interest.
Market read
Earnings beat and raised guidance make CTAS a near‑term bullish catalyst.
What to watch
Regulatory review by FTC could delay the UniFirst acquisition.
Fiscal 2027 first-quarter revenue rose 10.9%, operating income rose 15.2%, and adjusted diluted EPS rose 15.8%; Cintas raised full-year revenue and adjusted diluted EPS guidance.
Cintas reported double-digit revenue, gross margin, operating income and diluted EPS growth, generated higher operating and free cash flow, and raised its fiscal 2027 revenue and adjusted diluted EPS outlook.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenueGAAP | $ 3,013,981 (In thousands) | – | 10.9% |
| Organic revenue growthnon-GAAP | 8.9% | – | – |
| Workday adjusted revenueother | $ 2,968,315 (In thousands) | – | 9.2% |
| Gross marginGAAP | $ 1.55 billion | – | 13.7% |
| Total gross marginGAAP | 51.5% | – | 120 basis points |
| Uniform rental and facility services gross marginGAAP | 50.8% | – | – |
| Other gross marginGAAP | 53.9% | – | – |
| Cost of uniform rental and facility servicesGAAP | 1,128,884 (In thousands) | – | 7.3% |
| Cost of otherGAAP | 331,554 (In thousands) | – | 10.9% |
| Selling and administrative expensesGAAP | 827,244 (In thousands) | – | 10.5% |
| UniFirst Corporation transaction expensesGAAP | 14,412 (In thousands) | – | 100.0% |
| Operating incomeGAAP | $ 711,887 (In thousands) | – | 15.2% |
| Operating income as a percent of revenueGAAP | 23.6% | – | – |
| Interest incomeGAAP | (2,649) (In thousands) | – | 19.9% |
| Interest expenseGAAP | 24,706 (In thousands) | – | 2.3% |
| Income before income taxesGAAP | 689,830 (In thousands) | – | 15.8% |
| Income taxesGAAP | 138,119 (In thousands) | – | 31.8% |
| Effective tax rateGAAP | 20.0% | – | – |
| Net incomeGAAP | $ 551,711 (In thousands) | – | 12.3% |
| Net income marginGAAP | 18.3% | – | – |
| Basic earnings per shareGAAP | $ 1.37 | – | 13.2% |
| Diluted earnings per shareGAAP | $ 1.36 | – | 13.3% |
| Adjusted diluted EPSnon-GAAP | $1.39 | – | 15.8% |
| Basic weighted average common shares outstandingGAAP | 400,137 | – | – |
| Diluted weighted average common shares outstandingGAAP | 404,290 | – | – |
| Net cash provided by operating activitiesGAAP | 572,331 (In thousands) | – | – |
| Capital expendituresGAAP | (107,532) (In thousands) | – | – |
| Free cash flownon-GAAP | $ 464,799 (In thousands) | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Uniform Rental and Facility ServicesNot separately disclosed. | $ 2,294,736 (In thousands) | – | 9.7% |
| First Aid and Safety ServicesNot separately disclosed. | $ 388,517 (In thousands) | – | – |
| All OtherNot separately disclosed. | $ 330,728 (In thousands) | – | – |
Fiscal 2027 updated guidance outlook
- Revenue$12.15 billion to $12.27 billion
- Tax rate20.4%
- NoteAdjusted diluted EPS of $5.45 to $5.54.
- NoteFiscal year 2027 interest, net is expected to be approximately $103.0 million compared to $101.2 million in fiscal year 2026.
- NoteFiscal year 2027 has one more workday than fiscal year 2026.
- NoteGuidance excludes expected impacts from the proposed UniFirst acquisition.
- NoteGuidance does not assume any future acquisitions.
- NoteGuidance assumes a constant foreign currency exchange rate.
- NoteAdjusted diluted EPS guidance excludes non-recurring transaction costs related to the UniFirst acquisition.
Capital returns
- On September 15, 2026, Cintas paid an aggregate quarterly dividend of $208.8 million to shareholders.
- During the first quarter of fiscal 2027 and through September 22, 2026, Cintas purchased shares for a total purchase price of $544.7 million.
- Dividends paid were (180,700) (In thousands) for the three months ended August 31, 2026, compared to (157,766) (In thousands) for the three months ended August 31, 2025.
- Repurchase of common stock was (315,710) (In thousands) for the three months ended August 31, 2026, compared to (266,097) (In thousands) for the three months ended August 31, 2025.
What drove it
- Total revenue increased 10.9%, while organic revenue growth was 8.9%.
- Gross margin increased to 51.5% from 50.3%.
- Operating income as a percent of revenue increased to 23.6% from 22.7%, despite 14,412 (In thousands) of UniFirst Corporation transaction expenses.
- First-quarter adjusted diluted EPS excluded a $0.03 impact from UniFirst non-recurring transaction expenses.
- Management cited ongoing investments in technology, capacity and talent.
Concerns
- Operating income included $14.4 million of transaction expenses related to the proposed UniFirst acquisition.
- The first-quarter effective tax rate was 20.0%, compared to 17.6%, and both quarters were impacted by discrete items, primarily the tax accounting impact for stock-based compensation.
- The adjusted diluted EPS guide excludes non-recurring transaction costs related to the UniFirst acquisition, which cannot be reasonably estimated at this time.
- The proposed UniFirst transaction remains under U.S. Federal Trade Commission review and is expected to occur prior to the end of calendar 2026.
- Adjusted diluted EPS guidance does not include the impact of future share buybacks or significant economic disruptions or downturn.
What to watch
- Progress of U.S. Federal Trade Commission review and the expected closing of the UniFirst transaction prior to the end of calendar 2026.
- Delivery against updated fiscal 2027 revenue guidance of $12.15 billion to $12.27 billion.
- Delivery against updated adjusted diluted EPS guidance of $5.45 to $5.54.
- Fiscal 2027 interest, net expected to be approximately $103.0 million.
- The fiscal 2027 effective tax rate expected to be 20.4%.
- Organic revenue growth and gross-margin progression following first-quarter organic revenue growth of 8.9% and total gross margin of 51.5%.
Balance sheet and cash flow
- Cash and cash equivalents were $ 243,599 (In thousands) at August 31, 2026, compared to $ 289,018 (In thousands) at May 31, 2026.
- Debt due within one year was 999,291 (In thousands) at August 31, 2026, compared to 998,987 (In thousands) at May 31, 2026.
- Debt due after one year was 1,429,554 (In thousands) at August 31, 2026, compared to 1,429,086 (In thousands) at May 31, 2026.
- Total shareholders’ equity was 5,204,532 (In thousands) at August 31, 2026, compared to 5,139,887 (In thousands) at May 31, 2026.
- Net cash provided by operating activities was 572,331 (In thousands), compared to 414,481 (In thousands).
- Net cash used in investing activities was (117,367) (In thousands), compared to (116,227) (In thousands).
- Net cash used in financing activities was (500,168) (In thousands), compared to (424,001) (In thousands).
- Net decrease in cash and cash equivalents was (45,419) (In thousands), compared to (125,830) (In thousands).
Analysis
Cintas opened fiscal 2027 with $3.01 billion of revenue, up 10.9% from last year’s first quarter. Organic revenue growth was 8.9%, after adjusting for acquisitions, foreign currency exchange rate fluctuations and workday differences. Uniform Rental and Facility Services revenue was $2,294,736 (In thousands), up 9.7%, while First Aid and Safety Services revenue was $388,517 (In thousands) and All Other revenue was $330,728 (In thousands).
Profitability expanded faster than revenue. Gross margin increased 13.7% to $1.55 billion and total gross margin improved to 51.5% from 50.3%. Operating income rose 15.2% to $711.9 million, and operating income as a percent of revenue rose to 23.6% from 22.7%. This result included $14.4 million of UniFirst transaction expenses. Net income increased 12.3% to $551.7 million, while diluted EPS increased 13.3% to $1.36. Adjusted diluted EPS, excluding the $0.03 impact of UniFirst transaction expenses, was $1.39 and increased 15.8%.
Cash generation strengthened. Net cash provided by operating activities was $572,331 (In thousands), compared with $414,481 (In thousands), and free cash flow was $464,799 (In thousands), compared with $312,524 (In thousands). Capital expenditures were (107,532) (In thousands). Cash and cash equivalents were $243,599 (In thousands) at August 31, 2026, while debt due within one year was 999,291 (In thousands) and debt due after one year was 1,429,554 (In thousands).
Capital returns remained significant. Cintas paid an aggregate quarterly dividend of $208.8 million on September 15, 2026. It also purchased shares for a total purchase price of $544.7 million during the first quarter and through September 22, 2026. The cash flow statement reported (315,710) (In thousands) of common-stock repurchases and (180,700) (In thousands) of dividends paid during the quarter.
Management raised fiscal 2027 revenue guidance to $12.15 billion to $12.27 billion from $12.10 billion to $12.25 billion, and raised adjusted diluted EPS guidance to $5.45 to $5.54 from $5.36 to $5.50. The outlook excludes expected impacts from the proposed UniFirst acquisition and excludes non-recurring UniFirst transaction costs from adjusted diluted EPS. The transaction remains under U.S. Federal Trade Commission review, with the company expecting completion prior to the end of calendar 2026.
Management, verbatim
We are pleased with our start to fiscal 2027. Our employee-partners delivered another strong quarter, producing record revenue and record operating margin. Organic revenue growth of 8.9% and a record gross margin reflect the value we continue to provide our customers and the impact of our ongoing investments in technology, capacity and talent.
Todd M. Schneider, Chief Executive Officer
We continue to engage with the U.S. Federal Trade Commission as it reviews our transaction with UniFirst. We remain excited about the substantial value we expect to create for shareholders and customers through the transaction, and we look forward to welcoming the UniFirst Team Partners to Cintas once the transaction is complete, which we expect to occur prior to the end of calendar 2026.
Todd M. Schneider, Chief Executive Officer
As we look forward to what lies ahead for fiscal 2027, we are raising our full fiscal year financial guidance. We are raising our annual revenue expectations from a range of $12.10 billion to $12.25 billion to a range of $12.15 billion to $12.27 billion, and we are raising our adjusted diluted EPS expectations from a range of $5.36 to $5.50 to a range of $5.45 to $5.54.
Todd M. Schneider, Chief Executive Officer
Not in the filing
stated, not guessed- Prior-quarter income-statement comparisons were not provided.
- Prior-year adjusted diluted EPS was not printed as a standalone figure.
- Segment revenue growth for First Aid and Safety Services was not provided.
- Segment revenue growth for All Other was not provided.
- Segment-specific revenue drivers were not provided.
- Fiscal 2027 gross-margin guidance was not provided.
- Fiscal 2027 operating-expense guidance was not provided.
- A reconciliation of adjusted diluted EPS guidance to GAAP diluted EPS cannot be provided without unreasonable efforts, according to the company.
- A previous-release outlook was not provided for formal reported-results-versus-prior-guidance comparisons.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Cintas filed a Form 8‑K announcing its FY2027 Q1 results and updated guidance.
Ticker impact
Cintas reported Q1 FY2027 results and raised full-year revenue and EPS guidance.
potential price increase as investors price in higher guidance
Revenue grew 10.9% YoY, margins improved, and guidance was raised, indicating stronger outlook.
Market effects
Boosts outlook for business services and uniform suppliers.
Positive for US industrial and consumer discretionary sectors.
May influence global peers in facility services.
Counterpoint
If integration costs of UniFirst exceed expectations, guidance may be overstated.
Key entities
- companyCintas Corp
Provider of uniforms and facility services.
