Cintas (CTAS) Q1 2027 earnings summary

Executive summary

• Record Q1 revenue of $3.014B, up 10.9% year over year; organic revenue growth was 8.9%.

• Net income rose 12.3% to $551.7M; diluted EPS increased 13.3% to $1.36, or $1.39 adjusted for UniFirst transaction costs.

• Operating income grew 15.2% to $711.9M; operating margin reached 23.6%, up from 22.7%.

• Fiscal 2027 revenue and adjusted diluted EPS guidance were raised to $12.15–$12.27B and $5.45–$5.54, respectively.

Financial highlights

• Gross margin was $1.55B, or 51.5% of revenue, up 120 basis points year over year; selling and administrative expense improved to 27.4% of revenue.

• Operating income was $711.9M versus $617.9M; adjusted operating income increased 17.6%.

• Free cash flow was $464.8M, versus $312.5M a year earlier; operating cash flow was $572.3M.

• Effective tax rate was 20.0%, versus 17.6%; both periods were affected by discrete items, primarily stock-based compensation tax accounting.

Outlook and guidance

• FY27 revenue guidance: $12.15–$12.27B, representing 7.9%–8.9% growth; adjusted diluted EPS guidance: $5.45–$5.54, representing 10.3%–12.1% growth.

• Guidance excludes the proposed UniFirst acquisition and assumes constant FX rates; no future acquisitions are included.

• FY27 effective tax rate is expected to be 20.4%; incremental margins are expected at 32%–34%.

• UniFirst closing is expected before calendar year-end 2026, subject to customary conditions and FTC review; closing is barred before December 11 absent earlier FTC clearance.