Key financial results

  • First quarter total revenue grew 10.9% to $3.01 billion, marking the first time the company reached $3 billion of revenue in a quarter.First quarter total revenue grew 10.9% to $3.01 billion.
  • The organic growth rate, adjusting for acquisitions, foreign currency exchange fluctuations, and Workday differences, was 8.9%.
  • Diluted EPS for the quarter was $1.36, representing a 13.3% increase from the prior year.Diluted EPS for the quarter was $1.36, an increase of 13.3% from the prior year.
  • Adjusted diluted EPS, excluding UniFirst transaction-related expenses, was $1.39, an increase of 15.8% from the prior year.adjusted diluted EPS was $1.39, an increase of 15.8% from the prior year.
  • Operating income was $711.9 million compared to $617.9 million last year, an increase of 15.2%.First quarter operating income was $711.9 million compared to $617.9 million last year, an increase of 15.2%.
  • Operating income as a percentage of revenue reached an all-time high of 23.6% compared to 22.7% in the prior year first quarter.Operating income as a percentage of revenue was at an all-time high at 23.6% in the first quarter of fiscal 2027
  • Gross margin as a percentage of revenue reached an all-time high of 51.5%.Gross margin as a percentage of revenue was 51.5%, an all-time high.
  • Net income for the first quarter was $551.7 million compared to $491.1 million last year.Net income for the first quarter was $551.7 million compared to $491.1 million last year.

Business segment results

  • Uniform Rental and Facility Services: Uniform Rental and Facility Services organic growth was 8%.Organic growth by business was 8% for Uniform Rental and Facility Services
  • Uniform Rental and Facility Services: Uniform Rental and Facility Services gross margin reached an all-time high of 50.8%, an increase of 110 basis points from last year.Uniform Rental and Facility Services segment increased 110 basis points from last year to achieve an all-time high gross margin of 50.8%.
  • First Aid and Safety Services: First Aid and Safety Services organic growth was 14.2%.14.2% for First Aid Safety Services
  • First Aid and Safety Services: First Aid and Safety Services gross margin increased 80 basis points from last year to 57.6%.Our First Day in Safety Services segment gross margin increased 80 basis points from last year.
  • Fire Protection Services: Fire Protection Services organic growth was 9.2%.9.2% for Fire Protection Services
  • Fire Protection Services: Fire Protection Services gross margin was 52.8%.52.8% of our Protection Services
  • Uniform Direct Sale: Uniform Direct Sale organic growth was 9.6%.9.6% for Uniform Direct sale.
  • Uniform Direct Sale: Uniform Direct Sale gross margin was 38.9%.38.9% for Uniform Direct sales.

Capital allocation

  • Capital expenditures were $107.5 million during the quarter, representing 3.6% of sales, focused on technology, automation, capacity expansion, and infrastructure.Our capital expenditures were within our targeted range at 3.6% of sales.
  • The regular quarterly dividend was increased by 15.6% for shareholders of record as of August 14, 2026.increased our dividend 15.6% for the shareholders of record as of August 14, 2026.
  • Share repurchases totaled $545 million through the date of the call.purchasing $545 million through today's date.
  • Customers continue to see the value of outsourcing to a service provider like Cintas to help manage image, safety, cleanliness, and compliance needs.value proposition we provide by helping customers meet their image, safety, cleanliness and compliance needs.
  • Demand remains consistent as businesses seek to improve productivity, reduce complexity, and operate more efficiently.We remain encouraged by the consistency of demand we are seeing as businesses continue to see the value of outsourcing
  • Management noted that the macroeconomic environment is dynamic, but the company does not need a thriving economy to grow and has demonstrated the ability to grow multiples above GDP and employment.From a macro standpoint, it is certainly a dynamic environment, but we're pleased with where the demand is coming from

Competitive landscape

  • Culture remains the company's greatest competitive advantage, driven by operational excellence, supply chain management, and technology investments.Our culture remains our greatest competitive advantage.
  • The market is highly competitive, but Cintas differentiates itself through customer service and a strong value proposition that targets the massive addressable market of no programmers.The market remains highly competitive, and we believe our value proposition positions us well

Macroeconomic environment

  • The jobs report and GDP have been positive, though job reports have been slightly choppy.If you look at GDP and the jobs report, they've been positive, a little -- the jobs have been a little bit choppy.
  • Energy costs represented 1.8% of revenue in the quarter, and management expects energy expenses to remain manageable through operational efficiencies.We finished the quarter at 1.8% in energy

Growth opportunities and strategies

  • Over two-thirds of new business continues to come from converting no programmers to managed solutions.over 2/3 of our new business comes from no programmers.
  • Cross-sell efforts are ongoing to deepen existing customer relationships by adding new products and services.our cross-sell efforts continue to go very well.
  • Customer retention remains strong, showing slight incremental improvements.Retention continues to perform really well, slight improvement in retention

Financial guidance and outlook

  • Fiscal 2027 revenue guidance was raised from a range of $12.10 billion to $12.25 billion to a range of $12.15 billion to $12.27 billion.We are raising fiscal 2027 revenue guidance from a range of $12.10 billion to $12.25 billion to a range of $12.15 billion to $12.27 billion
  • Fiscal 2027 adjusted diluted EPS guidance was raised from a range of $5.36 to $5.50 to a range of $5.45 to $5.54.We are also raising our fiscal 2027 adjusted diluted EPS from a range of $5.36 to $5.50 to a range of $5.45 to $5.54
  • Net interest expense for fiscal 2027 is expected to be approximately $103 million.The fiscal 2027 net interest expense is expected to be approximately $103 million
  • The effective tax rate for fiscal 2027 is expected to be 20.4%.a fiscal 2027 effective tax rate of 20.4%

UniFirst acquisition update

  • The regulatory clearance process in both the U.S. and Canada is ongoing.That process is ongoing as we continue to work toward obtaining regulatory clearance
  • Management remains optimistic that the transaction will close by the end of calendar 2026.We remain optimistic that the deal will close by the end of calendar 2026.

Q1 FY2027 results

MetricResultChange
Total Revenue$3.01 billion10.9%
Diluted EPS$1.3613.3%
Adjusted Diluted EPS$1.3915.8%
Gross Margin51.5%all-time high
Operating Income$711.9 million15.2%
Operating Margin23.6%90 basis point improvement

How management sounded

Balanced (+35 on our -100 to +100 scale). Management expressed strong satisfaction with top line growth, all-time high gross and operating margins, and raised fiscal 2027 guidance. Management sounded more upbeat than on 20% of the 302 calls we cover; most companies sound positive on their own calls, so the comparison says more than the label.

Read the analyst Q&A summary and guidance and outlook for this call.

What to watch before the next call

  • Progress on regulatory clearances and closing conditions for the UniFirst acquisition by the end of calendar 2026.
  • Rollout and pilot progress of the SAP system in the Fire Protection Services business.
  • Quarterly work-day differentials and their impact on incrementals and margins.

Earlier calls

  • Q4 FY2026 (Jul 15, 2026), tone Balanced: Cintas reported fiscal fourth quarter total revenue of $2.91 billion, up 8.9%, and issued fiscal 2027 revenue guidance of $12.1 billion to $12.25 billion.