SLS operates as an autonomous, capital-light subsidiary with global reach, focusing on rapid decision-making and agility to serve hyperscalers, enterprises, and OEMs across EMEA, APAC, and the Americas.
The business is strategically positioned to benefit from the AI-driven data center boom, with strong integration and long-term contracts with major hyperscalers and diversified revenue streams.
SLS emphasizes client integration, high service levels, and innovation, making it a preferred partner for hyperscalers and large enterprises.
Fiscal Q1 2026 revenue rose 8.7% year-over-year to $2.72 billion, with organic growth at 7.8%.
Net income increased 8.7% to $491.1 million, and diluted EPS grew 9.1% to $1.20.
Underlying EBIT increased 78% from $8 million in 2023 to $32 million in 2025, driven by robust revenue growth and cost control.
Revenue grew from $325 million to $427 million over two years, with hyperscaler revenue doubling from $100 million to $200 million.
Gross margin improved to $1.37 billion, supported by diversified revenue streams and cost efficiencies.
Operating costs rose only 15% over the period, falling as a percentage of revenue.
Free cash flow for the quarter was $312.5 million, down from $367.4 million a year ago.
SLS will remain capital light, focusing on automation, geographic expansion, and organic growth with clients.
Fiscal 2026 revenue guidance raised to $11.06–$11.18 billion, with EPS guidance increased to $4.74–$4.86.
The business expects to continue capturing accelerated growth and earnings momentum, leveraging AI and hyperscaler tailwinds.
No specific guidance provided for 2026 or 2027 for SLS, but margin growth is anticipated as hyperscaler business expands.
Guidance assumes no future acquisitions, constant FX rates, and no major disruptions.
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Cintas Corporation is an American company that provides services and products for business customers. Its products include things such as uniforms, cleaning & restroom supplies, safety products, and more. The company is arguably best known for its uniform rental services, Cintas designs, manufactures, and implements corporate identity uniform programs. The company is headquartered in Mason, Ohio, and is traded on the Nasdaq.
Founded in 1929 by Amelia and Richard "Doc" Farmer, Cintas began its journey as the Acme Industrial Laundry Company in Cincinnati, Ohio. They started by collecting used chemical-soaked rags from factories, laundering them, and then returning them for reuse. As the business grew, his grandson, Richard T. Farmer, recognized an opportunity in the emerging uniform rental industry and shifted the company's focus in the 1960s and the company was renamed Cintas in 1972. While Cintas is a leader in the field, there are several companies that offer similar services. Some examples include names such as Aramark and UniFirst.
Cintas Corporation's uniform rental service is one of its core business segments. Through this service, the company provides businesses with uniforms, handling the design, manufacturing, and regular maintenance of these garments. The process typically involves Cintas delivering clean uniforms to businesses on a set schedule, picking up soiled ones, and then laundering and repairing them as necessary. Once the uniforms reach the end of their usable life, Cintas also takes responsibility for their replacement. This system allows businesses to maintain a consistent appearance for their employees without the need for internal management of uniform inventories or laundry services.
Cintas offers a range of services beyond its uniform rentals. These include providing entrance and logo mats designed for facility cleanliness and branding. Cintas also has tile and carpet cleaning services as well as restroom services that supply associated products. The company also offers fire protection and safety services. These include fire extinguisher inspections, maintenance of emergency exit lights, and other offerings within workplace safety.
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