Cintas (CTAS) Q1 2026 earnings summary

Executive summary

• 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.

• Operating income rose 10.1% to $617.9 million, representing 22.7% of revenue, up from 22.4% a year ago.

• Gross margin improved to 50.3% of revenue, up 20 basis points year-over-year.

• Strong cash flow supported $347.4 million in share repurchases and a 15.4% higher dividend.

Financial highlights

• Uniform rental and facility services revenue grew 8.1% to $2.09 billion; First Aid and Safety Services revenue rose 14.4% to $334.7 million.

• Net income margin was 18.1% year-over-year.

• Cash flow from operating activities was $414.5 million.

• Free cash flow for the quarter was $312.5 million, down from $367.4 million a year ago.

• Dividends paid totaled $157.8 million, with an additional $182.3 million accrued.

Outlook and guidance

• Fiscal 2026 revenue guidance raised to $11.06–$11.18 billion, growth of 7%–8.1%.

• Diluted EPS guidance increased to $4.74–$4.86, growth of 7.7%–10.5%.

• Guidance assumes constant FX, $97M net interest expense, 20% effective tax rate, and no future acquisitions or buybacks.

• Management expects continued sufficient liquidity and access to $2.0 billion in revolving credit.

• Net interest expense projected at $97 million, up from $95 million due to refinancing.