Cintas Corporation

First-quarter total revenue increased 10.9% to $3.01 billion, with organic growth of 8.9%. Diluted EPS was $1.36 versus $1.20 last year, up 13.3%; adjusted diluted EPS was $1.39, up 15.8%. Gross margin was 51.5% and operating margin was 23.6%, both all-time highs. Operating income was $711.9 million, up 15.2% from $617.9 million, and net income was $551.7 million versus $491.1 million last year. For fiscal 2027, revenue guidance was raised to $12.15 billion-$12.27 billion from $12.10 billion-$12.25 billion, and adjusted diluted EPS guidance was raised to $5.45-$5.54 from $5.36-$5.50. The company also said fiscal 2027 net interest expense is expected to be approximately $103 million and the effective tax rate about 20.4%.

Todd Schneider framed the quarter as a strong start to the year and said Cintas is benefiting from its value proposition in image, safety, cleanliness and compliance. He emphasized that growth is being driven primarily by new business, especially converting no-programmers, along with steady customer growth and a favorable mix of volume, retention and cross-sell. His tone was confident on the core business and upbeat on the company’s long-term opportunity, while staying measured on the macro backdrop and the UniFirst process.

Scott Garula highlighted the financial upside from leverage and operating discipline: operating income of $711.9 million, operating margin of 23.6%, net income of $551.7 million, and EPS of $1.36, with adjusted EPS of $1.39. He pointed to $107.5 million of capex in the quarter, mostly for technology, automation, capacity expansion and infrastructure, and said the company repurchased $545 million of shares through today while also raising the quarterly dividend 15.6%. He also clarified that the $103 million net interest expense guide reflects bridge-loan fees tied to UniFirst, and that guidance excludes future buybacks and UniFirst transaction costs.

Analysts focused on what is driving the raised revenue guide, with management saying the main drivers are new business from no-programmers, continued customer growth, and stronger retention and cross-sell. Questions also centered on margin cadence, with management explaining that Q1 benefited from an extra workday and that the annual guide still implies 32% to 34% incrementals on the mid-to-high end of revenue. On UniFirst, management reiterated that regulatory clearance is still in process and declined to provide additional detail, while saying they remain optimistic about closing by the end of calendar 2026.