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Cintas posted Q4 earnings of $1.29 per share on $2.91 billion in revenues, beating estimates.
CTAS delivered a record 51% gross margin, driven by 8.4% organic revenue growth and solid demand.
Cintas forecasts fiscal 2027 revenues of $12.10-$12.25 billion and EPS of $5.36-$5.50.
Cintas Corporation (CTAS - Free Report) reported fourth-quarter fiscal 2026 earnings of $1.29 per share, which beat the Zacks Consensus Estimate of $1.24 by 4%. The bottom line increased 18.3% from the year-ago quarter figure. Revenues of $2.91 billion surpassed the consensus estimate of $2.88 billion by 1% and rose 8.9% year over year.
The top line was driven by 8.4% organic revenue growth, reflecting solid demand across its route-based businesses. Record gross margins also stood out as a key highlight in the quarter.
Cintas’ Segmental Results
The company has two reportable segments, Uniform Rental and Facility Services and First Aid and Safety Services. Other businesses, like Uniform Direct Sale and Fire Protection Services, are included in All Other. Quarterly sales data are briefly discussed below.
Cintas’ Uniform Rental and Facility Services segment generated revenues of $2.20 billion, up 8.2% year over year from $2.03 billion. Segment operating income rose to $529.5 million from $465.1 million, reflecting steady demand and operating leverage.
The First Aid and Safety Services segment delivered revenues of $368.1 million, increasing 13.5% from $324.4 million in the prior-year quarter. Operating income climbed to $98.6 million from $76.7 million, supported by strong demand for safety and compliance solutions.
Revenues from the All Other segment totaled $339.4 million, up 8.6% from $312.6 million a year ago. Segment operating income increased to $59 million from $55.7 million.
Cintas Corporation Price, Consensus and EPS Surprise
Cintas’ cost of sales (comprising costs related to uniform rental and facility services and others) increased 6.2% year over year to $1.42 billion. Cintas reported gross profit of $1.48 billion, up 11.6% year over year. Gross margin improved 130 basis points to 51%, marking a record high.
Selling and administrative expenses totaled $793.2 million, up 8.9% from the year-ago quarter figure. Despite this increase, operating income rose 12.7% to $673 million.
Operating margin was 23.2%, up from 22.4% in the prior-year quarter, helped by higher sales. Net income increased 14% to $511 million, with a tax rate of 21.2%.
Cintas’ Balance Sheet & Cash Flow
Exiting fiscal 2026, Cintas had cash and cash equivalents of $289 million compared with $264 million at the end of fiscal 2025. Long-term debt was about $1.43 billion compared with $2.42 billion at the end of fiscal 2025.
In fiscal 2026, it generated net cash of $2.28 billion from operating activities, up 5.1% from the year-ago period. Capital expenditures in the same period totaled $395.1 million, down 3.4% year over year.
The company repurchased shares worth $952.1 million compared with $934.8 million in the previous fiscal year. Dividend payments totaled $701.5 million, up 14.7% year over year.
Fiscal 2027 Outlook
For fiscal 2027, the company expects revenues to be in the range of $12.10-$12.25 billion. Adjusted earnings per share are projected in the range of $5.36-$5.50. The guidance excludes any expected impacts associated with the pending UniFirst acquisition.
Management expects net interest expense of approximately $105 million and an effective tax rate of 20.2% for the year. The outlook assumes stable foreign exchange rates and excludes contributions from acquisitions.
Zacks Rank & Other Key Picks
The company currently carries a Zacks Rank #2 (Buy). Some other top-ranked stocks from the same space are discussed below:
Duluth’s earnings surpassed the consensus estimate in each of the trailing four quarters. The average earnings surprise was 107.5%. In the past 60 days, the Zacks Consensus Estimate for DLTH’s fiscal 2027 bottom line has increased 45.8%.
Columbia Sportswear (COLM - Free Report) presently carries a Zacks Rank of 2. Columbia Sportswear’s earnings surpassed the consensus estimate in each of the trailing four quarters. The average earnings surprise was 44.1%. In the past 60 days, the Zacks Consensus Estimate for COLM’s 2026 earnings has increased 3.8%.
Vince Holding (VNCE - Free Report) currently carries a Zacks Rank of 2. Vince Holding’s earnings topped the consensus estimate thrice and missed once in the trailing four quarters. The average earnings surprise was 635.7%. In the past 60 days, the Zacks Consensus Estimate for VNCE’s fiscal 2027 earnings has increased 59.5%.
View the Zacks #1 Rank List
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Cintas' Q4 Earnings & Revenues Surpass Estimates, Increase Y/Y
Key Takeaways
Cintas Corporation (CTAS - Free Report) reported fourth-quarter fiscal 2026 earnings of $1.29 per share, which beat the Zacks Consensus Estimate of $1.24 by 4%. The bottom line increased 18.3% from the year-ago quarter figure. Revenues of $2.91 billion surpassed the consensus estimate of $2.88 billion by 1% and rose 8.9% year over year.
The top line was driven by 8.4% organic revenue growth, reflecting solid demand across its route-based businesses. Record gross margins also stood out as a key highlight in the quarter.
Cintas’ Segmental Results
The company has two reportable segments, Uniform Rental and Facility Services and First Aid and Safety Services. Other businesses, like Uniform Direct Sale and Fire Protection Services, are included in All Other. Quarterly sales data are briefly discussed below.
Cintas’ Uniform Rental and Facility Services segment generated revenues of $2.20 billion, up 8.2% year over year from $2.03 billion. Segment operating income rose to $529.5 million from $465.1 million, reflecting steady demand and operating leverage.
The First Aid and Safety Services segment delivered revenues of $368.1 million, increasing 13.5% from $324.4 million in the prior-year quarter. Operating income climbed to $98.6 million from $76.7 million, supported by strong demand for safety and compliance solutions.
Revenues from the All Other segment totaled $339.4 million, up 8.6% from $312.6 million a year ago. Segment operating income increased to $59 million from $55.7 million.
Cintas Corporation Price, Consensus and EPS Surprise
Cintas Corporation price-consensus-eps-surprise-chart | Cintas Corporation Quote
Margin Profile
Cintas’ cost of sales (comprising costs related to uniform rental and facility services and others) increased 6.2% year over year to $1.42 billion. Cintas reported gross profit of $1.48 billion, up 11.6% year over year. Gross margin improved 130 basis points to 51%, marking a record high.
Selling and administrative expenses totaled $793.2 million, up 8.9% from the year-ago quarter figure. Despite this increase, operating income rose 12.7% to $673 million.
Operating margin was 23.2%, up from 22.4% in the prior-year quarter, helped by higher sales. Net income increased 14% to $511 million, with a tax rate of 21.2%.
Cintas’ Balance Sheet & Cash Flow
Exiting fiscal 2026, Cintas had cash and cash equivalents of $289 million compared with $264 million at the end of fiscal 2025. Long-term debt was about $1.43 billion compared with $2.42 billion at the end of fiscal 2025.
In fiscal 2026, it generated net cash of $2.28 billion from operating activities, up 5.1% from the year-ago period. Capital expenditures in the same period totaled $395.1 million, down 3.4% year over year.
The company repurchased shares worth $952.1 million compared with $934.8 million in the previous fiscal year. Dividend payments totaled $701.5 million, up 14.7% year over year.
Fiscal 2027 Outlook
For fiscal 2027, the company expects revenues to be in the range of $12.10-$12.25 billion. Adjusted earnings per share are projected in the range of $5.36-$5.50. The guidance excludes any expected impacts associated with the pending UniFirst acquisition.
Management expects net interest expense of approximately $105 million and an effective tax rate of 20.2% for the year. The outlook assumes stable foreign exchange rates and excludes contributions from acquisitions.
Zacks Rank & Other Key Picks
The company currently carries a Zacks Rank #2 (Buy). Some other top-ranked stocks from the same space are discussed below:
Duluth Holdings (DLTH - Free Report) presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Duluth’s earnings surpassed the consensus estimate in each of the trailing four quarters. The average earnings surprise was 107.5%. In the past 60 days, the Zacks Consensus Estimate for DLTH’s fiscal 2027 bottom line has increased 45.8%.
Columbia Sportswear (COLM - Free Report) presently carries a Zacks Rank of 2. Columbia Sportswear’s earnings surpassed the consensus estimate in each of the trailing four quarters. The average earnings surprise was 44.1%. In the past 60 days, the Zacks Consensus Estimate for COLM’s 2026 earnings has increased 3.8%.
Vince Holding (VNCE - Free Report) currently carries a Zacks Rank of 2. Vince Holding’s earnings topped the consensus estimate thrice and missed once in the trailing four quarters. The average earnings surprise was 635.7%. In the past 60 days, the Zacks Consensus Estimate for VNCE’s fiscal 2027 earnings has increased 59.5%.