Cintas Corporation

Cintas reported Q4 fiscal 2026 revenue of $2.91 billion, up 8.9% year over year, with organic revenue growth of 8.4%. Gross margin was 51%, up approximately 130 basis points from the prior year, and operating income was $673 million, up 12.7%, with operating margin at 23.2%; adjusted operating margin was 23.6%. Diluted EPS was $1.26, up 15.6%, and adjusted diluted EPS was $1.29, up 18.3% from $1.09. For fiscal 2026, revenue was approximately $11.26 billion, up 8.9%, organic growth was 8.3%, gross margin was 50.7% (up 70 basis points), operating margin was 23.1%, adjusted operating margin was 23.3%, and adjusted diluted EPS was $4.94, up 12.3%. The company guided fiscal 2027 revenue to $12.1 billion to $12.25 billion, implying 7.4% to 8.7% growth, and adjusted diluted EPS to $5.36 to $5.50, implying 8.5% to 11.3% growth. Management also said fiscal 2027 incrementals are expected in the 30% to 32% range, with margin expansion of 10 to 60 basis points depending on revenue placement, and noted one extra workday should add about 40 basis points to revenue growth.

Todd Schneider struck a confident, steady tone and emphasized that Cintas is controlling what it can control in an uncertain macro backdrop. He repeatedly pointed to the company’s culture, large addressable market, and ability to grow across economic cycles as the basis for the outlook. He also said the company remains optimistic on the UniFirst deal, expects closing in the second half of calendar 26, and continues to see long-term runway in the core business and fire protection.

Scott Garula highlighted strong cash generation and disciplined capital deployment. He said operating cash flow was $709.1 million in the quarter, CapEx was $96 million, acquisitions were $61.9 million, and dividends were $180.6 million; for the full year, CapEx was $395.1 million, acquisitions were $164.5 million, and capital returned to shareholders totaled $1.7 billion, the second-largest fiscal-year return in company history. He also noted the fiscal 2027 guide assumes no additional acquisitions, constant FX, net interest expense of around $105 million, an effective tax rate similar to fiscal 2026’s 20.2%, and excludes future buybacks and UniFirst-related transaction costs.

Analysts focused on how management is thinking about the macro environment, incremental margins, energy costs, gross margin sustainability, hiring trends, and the Fire business. Management said the company is not dependent on any one economic backdrop, pricing is generally near historical levels, and margin expansion is being driven more by operational efficiency, route density, supply chain execution, and technology than by aggressive price increases. They also clarified that the fiscal 2027 guide implies 30% to 32% incrementals, about a 10 to 60 basis point margin increase, and that energy is expected to be a manageable headwind roughly similar to Q4.