Financial Data and Key Metrics Changes - Total revenue for the first quarter grew 8.7% to $2.72 billion, with an organic growth rate of 7.8% [4][6] - Gross margin as a percentage of revenue was 50.3%, a 20 basis point increase over the prior year [4] - Operating income increased to $617.9 million, a 10.1% rise compared to the previous year [4][11] - Diluted EPS rose to $1.20, reflecting a 9.1% increase year-over-year [4][11] - Cash flow from operating activities was $414.5 million [11] Business Line Data and Key Metrics Changes - Organic growth by business: - Uniform rental facility services: 7.3% - First aid and safety services: 14.1% - Fire protection services: 10.3% - Uniform direct sale declined by 9.2% [8][9] - Gross margin percentages by business: - Uniform rental facility services: 49.7% - First aid and safety services: 56.8% - Fire protection services: 48.9% - Uniform direct sale: 41.7% [9] Market Data and Key Metrics Changes - The company is experiencing steady customer retention rates and slight improvement in the customer base during the quarter [26][50] - The overall selling environment remains competitive, with no significant changes in sales cycles noted [26][71] Company Strategy and Development Direction - The company is raising its fiscal 2026 financial guidance, expecting revenue between $11.06 billion and $11.18 billion, and diluted EPS between $4.74 and $4.86 [6][12] - Continued investments in technology and operational efficiency are emphasized as key drivers for future growth [5][99] - The company remains focused on converting "no-programmers" into customers, which is seen as a significant growth opportunity [19][72] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to grow even in uncertain macroeconomic environments, highlighting the value proposition offered to customers [15][26] - The company is optimistic about the future of its first aid and safety services, projecting low double-digit growth [86][87] - Management noted that while they would prefer a favorable employment environment, they are prepared to grow regardless of job market conditions [34][50] Other Important Information - The company has maintained a 15.4% increase in quarterly cash dividends, marking the 42nd consecutive year of dividend increases [12] - The company is actively engaged in share buybacks, repurchasing $347.4 million of its shares [12] Q&A Session Summary Question: Impact of macroeconomic pressures on converting no-programmers - Management indicated that they can help customers under budget pressures, allowing them to focus on their core business [19][20] Question: Update on fire protection services and SAP implementation - Management acknowledged additional costs due to SAP implementation but remains bullish on the fire protection business [21][22] Question: Overall selling environment and client budget trends - Management reported no significant changes in customer behavior or sales cycles, with retention rates remaining strong [26][27] Question: Impact of decelerating non-farm payrolls on rental business - Management noted that they can grow despite employment levels and are focused on converting no-programmers [33][34] Question: Changes in competitive environment - Management stated that the market remains competitive, but they focus on the large untapped market of no-programmers [72][73] Question: Tariff-driven expense growth - Management highlighted their competitive advantage in global supply chain management and process improvements to mitigate tariff impacts [57][58] Question: First aid segment gross margins - Management explained that gross margins were flat sequentially and attributed fluctuations to timing and investment strategies [65][66] Question: M&A pipeline and appetite for expansion - Management confirmed that M&A remains important, with ongoing evaluations for both tuck-in and larger deals [80][82] Question: First aid and safety services growth outlook - Management expects low double-digit growth for the first aid business moving forward, supported by ongoing investments [86][87] Question: myCintas portal progress - Management indicated that the myCintas portal is a competitive advantage, enhancing customer and employee partner experiences [105][106]

Financial Data and Key Metrics Changes - Total revenue for the first quarter grew by 8.7% to $2.72 billion, with an organic growth rate of 7.8% [4][6] - Gross margin as a percentage of revenue increased by 20 basis points to 50.3% [4] - Operating income rose to $617.9 million, a 10.1% increase year-over-year [4][11] - Diluted EPS increased by 9.1% to $1.20 [4][11] - Cash flow from operating activities was $414.5 million [11] Business Line Data and Key Metrics Changes - Organic growth by business: - Uniform rental facility services: 7.3% - First aid and safety services: 14.1% - Fire protection services: 10.3% - Uniform direct sale declined by 9.2% [8] - Gross margin percentages by business: - Uniform rental facility services: 49.7% - First aid and safety services: 56.8% - Fire protection services: 48.9% - Uniform direct sale: 41.7% [9] Market Data and Key Metrics Changes - The customer base remained steady, with slight improvements noted during the quarter [26][50] - Retention rates were described as very attractive, indicating strong customer loyalty [26] Company Strategy and Development Direction - The company is focused on converting non-programmers to customers, particularly in uncertain economic environments [19][20] - Continued investments in technology and operational efficiency are seen as key drivers for future growth [5][99] - The company raised its fiscal 2026 financial guidance, expecting revenue between $11.06 billion and $11.18 billion, and diluted EPS between $4.74 and $4.86 [6][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to grow despite macroeconomic uncertainties [15][26] - The company is committed to delivering exceptional customer experiences and making necessary investments for sustained growth [15] - Management noted that the overall selling environment remains stable, with no significant changes in sales cycles [26][60] Other Important Information - The company announced a 15.4% increase in its quarterly cash dividend, marking the 42nd consecutive year of dividend increases [12] - The company is actively engaged in share buybacks, repurchasing $347.4 million of its shares [12] Q&A Session Summary Question: Impact of macroeconomic pressures on converting non-programmers - Management indicated that they can grow in various ways, especially in environments where customers face budget pressures, helping them free up cash flow [19][20] Question: Update on the fire protection services and SAP implementation - Management acknowledged additional costs associated with SAP implementation but remains optimistic about the long-term growth of the fire protection business [21][22] Question: Overall selling environment and client budget trends - Management reported no significant changes in customer behavior or sales cycles, with retention rates improving slightly [26][27] Question: Impact of decelerating non-farm payrolls on rental business - Management noted that they can grow even with stagnant job growth, focusing on converting non-programmers and selling additional services [33][34] Question: Changes in competitive environment - Management stated that the market remains competitive, but they focus on the large untapped market of do-it-yourselfers rather than traditional competitors [72] Question: Update on tariff-driven expense growth - Management confirmed that while tariffs have impacted costs, their global supply chain provides a competitive advantage [56][58] Question: First aid segment gross margins - Management explained that gross margins were flat sequentially and attributed any year-over-year changes to timing and investment strategies [65][66] Question: M&A pipeline and appetite for expansion - Management emphasized the importance of M&A for growth, with a focus on tuck-in deals and maintaining strong relationships for future opportunities [80][82] Question: Outlook for first aid and safety services business - Management expects low double-digit growth for the first aid business moving forward, supported by ongoing investments [86][87]

Core Insights - Cintas reported $2.72 billion in revenue for the quarter ended August 2025, marking an 8.7% year-over-year increase, with EPS of $1.20 compared to $1.10 a year ago [1] - The revenue exceeded the Zacks Consensus Estimate of $2.69 billion, resulting in a surprise of +0.87%, while the EPS also surpassed the consensus estimate of $1.19 with a surprise of +0.84% [1] Revenue Breakdown - Revenue from Uniform Rental and Facility Services was $2.09 billion, slightly above the $2.07 billion average estimate, reflecting an 8.1% year-over-year increase [4] - Revenue from Other services reached $627.06 million, exceeding the estimated $624.15 million, representing a 10.5% increase compared to the previous year [4] - Revenue from All Other services was $292.4 million, slightly below the estimated $294.27 million, but still showing a 6.3% year-over-year growth [4] - Revenue from First Aid and Safety Services was $334.66 million, surpassing the $329.18 million estimate, with a notable 14.4% year-over-year increase [4] Operating Income Analysis - Operating income for Uniform Rental and Facility Services was $499.94 million, exceeding the average estimate of $487.7 million [4] - Operating income for First Aid and Safety Services was $80.33 million, slightly above the average estimate of $80.01 million [4] - Operating income for All Other services was $37.6 million, below the average estimate of $48.44 million [4] Stock Performance - Cintas shares have returned -5.8% over the past month, contrasting with the Zacks S&P 500 composite's +3.1% change, but the stock holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Financial Data and Key Metrics Changes - Total revenue for Q1 2026 grew by 8.7% to $2.72 billion, with an organic growth rate of 7.8% [3][4] - Gross margin as a percentage of revenue increased by 20 basis points to 50.3% [3] - Operating income rose to $617.9 million, a 10.1% increase year-over-year [3][10] - Diluted EPS increased by 9.1% to $1.20 [3][10] - Cash flow from operating activities was $414.5 million [10] Business Segment Data and Key Metrics Changes - Organic growth by business: - Uniform rental facility services: 7.3% - First aid and safety services: 14.1% - Fire protection services: 10.3% - Uniform direct sale: declined by 9.2% [7][8] - Gross margin percentages by business: - Uniform rental facility services: 49.7% - First aid and safety services: 56.8% - Fire protection services: 48.9% - Uniform direct sale: 41.7% [8] Market Data and Key Metrics Changes - The company reported strong revenue growth across all three route-based businesses despite macroeconomic uncertainties [3][4] - Retention rates remained high, and customer behavior showed slight improvement during the quarter [23][24] Company Strategy and Development Direction - The company is raising its fiscal 2026 financial guidance, expecting revenue between $11.06 billion and $11.18 billion, and diluted EPS between $4.74 and $4.86 [4][11] - Continued investments in technology and operational efficiency are aimed at driving revenue growth and margin expansion [4][11] - The company focuses on converting "no programmers" into customers, emphasizing the value of outsourcing to improve cash flow and operational efficiency [18][61] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategy and the value provided to customers, despite a somewhat uncertain economic environment [13][24] - The company is optimistic about maintaining growth and expanding its market share, particularly among "do-it-yourselfers" [61][62] Other Important Information - The company announced a 15.4% increase in its quarterly cash dividend, marking the 42nd consecutive year of dividend increases [11] - Capital expenditures for the quarter were $102 million, with ongoing investments in all three route-based businesses [10][11] Q&A Session Summary Question: Impact of macroeconomic pressures on converting non-programmers - Management indicated that they can grow in various environments and help customers manage budget pressures, which can accelerate conversions from non-programmers [18] Question: Update on the selling environment and client budget trends - Management noted no significant changes in sales cycles and that customer retention rates improved slightly during the quarter [23][24] Question: Trends in net wear levels across rental business - Management acknowledged the deceleration in non-farm payrolls but emphasized their ability to grow despite employment levels [29][30] Question: Changes in competitive environment - Management stated that the market remains competitive, but they continue to focus on the large untapped market of "do-it-yourselfers" [61] Question: Update on tariff-driven expense growth - Management confirmed that while tariffs have impacted costs, their global supply chain provides a competitive advantage [49][51] Question: First aid segment gross margins - Management explained that gross margins were flat sequentially and attributed any year-over-year changes to timing issues rather than operational inefficiencies [55][57] Question: M&A pipeline and appetite for expansion - Management expressed ongoing interest in M&A, particularly in the fire and safety business, while also focusing on organic growth opportunities [67][78] Question: Impact of visa requirements on customer hiring - Management reported no material impact from changes in immigration policy on customer hiring [92] Question: Update on MyCintas portal - Management highlighted the MyCintas portal as a competitive advantage, noting continued investment and positive customer feedback [88][90]

Financial Data and Key Metrics Changes - Underlying EBIT earnings increased by 78% from 2023 to 2025, moving from $8 million to $32 million [21] - Revenue grew from $325 million to $427 million, driven by a $100 million increase in hyperscaler revenue over the two-year period [22][28] - Operating costs increased by only 15% over the same period, which is significantly lower than the revenue growth [23] Business Line Data and Key Metrics Changes - Revenue from hyperscalers rose from 31% to 47% of total revenue, reflecting strong growth in this segment [28] - The number of repurposed units doubled, indicating robust market growth [24] Market Data and Key Metrics Changes - The investment in AI data centers is projected to continue growing, with significant capital being allocated by major tech companies [10][11] - The competitive landscape consists of approximately 95% local providers, with only 5% being global competitors like Iron Mountain and SK Tes [12] Company Strategy and Development Direction - The company aims to remain capital light while expanding geographically and automating processes to scale efficiently [31] - Strategic partnerships and continuous innovation are emphasized to maintain a competitive edge in the rapidly evolving tech services market [32] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth potential in the hyperscaler market, driven by AI advancements and increasing demand for data center services [32] - The company is well-positioned to capture market share due to its diversified revenue streams and strong relationships with hyperscalers [32] Other Important Information - The company has a robust foundation with no single customer contributing more than 20% of total revenue, ensuring revenue diversification [18] - The company has been investing in scalable capacity, with an additional 50% to 60% capacity available in the U.S. [14] Q&A Session Summary Question: How should we think about the growth in hyperscalers influencing margins? - Management expects margins to increase as hyperscaler growth is paralleled with cost control and efficiency [33][34] Question: Is the hyperscaler segment a higher margin customer? - Management indicated that hyperscaler growth touches all three revenue streams, leading to increased service revenue and margins [36][39] Question: How do costs flex as the company scales? - The company has 50% to 60% capacity available in the U.S., with scaling achieved through adding shifts and automation where feasible [43] Question: Why do clients choose this company over competitors? - The company can move quickly and integrate closely with clients, providing customized services and maintaining high service levels [59][61] Question: What is the company's footprint and why Nashville? - Nashville was chosen for its logistical advantages, and the company has plans for growth in both the U.S. and Europe [64][68] Question: How does the company prevent disruption from competitors? - The company focuses on integrating systems with clients, making it difficult for them to switch providers [74][78]

Cintas (CTAS) came out with quarterly earnings of $1.2 per share, beating the Zacks Consensus Estimate of $1.19 per share. This compares to earnings of $1.1 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +0.84%. A quarter ago, it was expected that this uniform rental company would post earnings of $1.07 per share when it actually produced earnings of $1.09, delivering a surprise of +1.87%.Over the last four quarters, the comp ...

Market Overview - U.S. stock markets opened positively on September 24, 2025, recovering from losses experienced the previous day, with major indexes near all-time highs [1][2][3] - The S&P 500 was up 0.2% at 6674 points, the Dow Jones Industrial Average increased by 113 points (0.2%), and the Nasdaq Composite rose 0.3% [2] Economic Indicators - Investors are focused on upcoming economic data, particularly the U.S. core Personal Consumption Expenditures (PCE) price index, which is expected to show slight inflation acceleration [4] - Federal Reserve Chair Jerome Powell indicated a cautious approach to future interest rate adjustments, acknowledging the Fed's recent rate cut but not signaling immediate further cuts [5] - Revised U.S. GDP numbers, consumer confidence data, and reports on home sales and durable goods orders are also anticipated [6] Company Developments - Alibaba (BABA) shares surged nearly 9% in premarket trading after announcing increased AI spending plans beyond $50 billion [7] - Micron Technology (MU) gained over 1% following better-than-expected earnings and strong guidance [8] - Nvidia (NVDA) dropped 2.8% due to concerns over its $100 billion deal with OpenAI but showed signs of recovery, up nearly 1% in premarket [9][10] - Boeing (BA) stock rose by 2% after Uzbekistan Airways announced a purchase agreement for 14 Dreamliner airplanes [11] - Lithium Americas (LAC) shares soared on news of potential U.S. government investment in its lithium project [11] Earnings Reports - Cintas Corporation (CTAS) is expected to report fourth-quarter fiscal 2025 earnings with a consensus EPS forecast of $1.19 [12] - AutoZone Inc. (AZO) reported adjusted earnings that missed estimates, leading to a slight stock dip [12] - Firefly Aerospace (FLY) saw a significant stock drop of 15.3% after reporting a wider-than-expected loss [12] - Kenvue (KVUE) climbed 1.6% after recovering from previous losses related to comments about its Tylenol product [12] Market Sentiment - The market remains dynamic, with investors weighing economic indicators, Federal Reserve policy signals, and individual company performance, indicating a cautious optimism focused on growth sectors [13]

[Executive Summary & Financial Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Financial%20Highlights) Cintas Corporation reported strong financial results for the first quarter of fiscal 2026, with significant increases across revenue, gross margin, operating income, net income, and diluted EPS. The company also continued its share buyback program and increased quarterly dividends Fiscal 2026 First Quarter Financial Performance (YoY) | Metric | Q1 FY2026 | Q1 FY2025 | % Change | | :-------------------------------- | :---------- | :---------- | :------- | | Revenue | $2.72 billion | $2.50 billion | 8.7% | | Organic Revenue Growth Rate | - | - | 7.8% | | Gross Margin | $1.37 billion | $1.25 billion | 9.1% | | Gross Margin as % of Revenue | 50.3% | 50.1% | +20 bps | | Operating Income | $617.9 million | $561.0 million | 10.1% | | Operating Income as % of Revenue | 22.7% | 22.4% | +30 bps | | Net Income | $491.1 million | $452.0 million | 8.7% | | Diluted Earnings Per Share (EPS) | $1.20 | $1.10 | 9.1% | Shareholder Returns (Q1 FY2026) | Activity | Amount | | :------------------ | :------------- | | Share Buybacks | $347.4 million | | Quarterly Dividend Paid | $182.3 million | | Dividend Increase (YoY) | 15.4% | [Management Commentary and Outlook](index=1&type=section&id=Management%20Commentary%20and%20Outlook) CEO Todd M. Schneider highlighted strong Q1 performance driven by disciplined execution and strategic investments. The company is focused on operational excellence, investing in people and platforms for sustainable growth, and maintaining balanced capital allocation. Cintas has also raised its full fiscal year 2026 financial guidance for both revenue and diluted EPS - Cintas' President and CEO, Todd M. Schneider, attributed **strong Q1 revenue growth and margin expansion** to disciplined execution, ongoing investment in technology and talent, and employee-partner commitment, reflecting the strength of their value proposition[7](index=7&type=chunk) - The company is focused on **operational excellence**, investing in people and platforms to position Cintas for **sustainable growth** and **long-term value creation**, supported by **robust cash flow generation** and **balanced capital allocation**[8](index=8&type=chunk) Updated Fiscal Year 2026 Financial Guidance | Metric | Previous Guidance | Updated Guidance | | :---------------- | :---------------------- | :--------------------- | | Annual Revenue | $11.00 billion to $11.15 billion | $11.06 billion to $11.18 billion | | Diluted EPS | $4.71 to $4.85 | $4.74 to $4.86 | - The total revenue guidance assumes the same number of workdays as fiscal year 2025, no future acquisitions, and a constant foreign currency exchange rate[8](index=8&type=chunk) [Company Profile and Webcast Information](index=2&type=section&id=Company%20Profile%20and%20Webcast%20Information) Cintas Corporation, a Fortune 500 company, provides a wide range of products and services to over one million businesses, helping them maintain clean, safe, and professional facilities and employees. The company also announced details for its fiscal 2026 first quarter results webcast - Cintas Corporation helps over **one million businesses** by providing products and services including uniforms, mats, mops, restroom supplies, workplace water services, first aid and safety products, safety training, and fire protection services[9](index=9&type=chunk) - Cintas is headquartered in Cincinnati, a publicly held **Fortune 500 company** traded on the Nasdaq Global Select Market under the symbol **CTAS**, and is a component of both the **S&P 500** and **Nasdaq-100 Indices**[9](index=9&type=chunk) - A live webcast to review the fiscal 2026 first quarter results was scheduled for **September 24, 2025, at 10:00 a.m. Eastern Time**, available on Cintas' website, with a replay available for two weeks[9](index=9&type=chunk) [Caution Concerning Forward-Looking Statements](index=2&type=section&id=CAUTION%20CONCERNING%20FORWARD-LOOKING%20STATEMENTS) This section serves as a cautionary statement regarding forward-looking statements made in the press release, emphasizing that such statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations - The press release contains forward-looking statements, including fiscal 2026 full-year guidance, protected by the **Private Securities Litigation Reform Act of 1995**[10](index=10&type=chunk) - Forward-looking statements are based on current expectations and are subject to various risks, uncertainties, and assumptions that could cause actual results to differ[10](index=10&type=chunk) - Factors that might cause differences include operating costs, sales volumes, customer loss, acquisition integration, supply chain constraints, macroeconomic conditions, changes in trade policies, material and labor costs, regulatory compliance, exchange rate fluctuations, environmental liabilities, cybersecurity threats, and litigation[10](index=10&type=chunk) [Additional Financial Guidance Details](index=2&type=section&id=Additional%20Financial%20Guidance%20Details) This section provides specific assumptions and expectations for Cintas' fiscal year 2026 financial guidance, particularly concerning net interest, effective tax rate, and the factors not included in the diluted EPS guidance - Fiscal year 2026 interest, net is expected to be approximately **$97.0 million**, an increase from **$95.0 million** in fiscal year 2025, primarily due to refinancing senior notes at a higher interest rate, partially offset by lower variable rate interest[11](index=11&type=chunk) - The expected interest, net may change based on future share buybacks or acquisition activity[11](index=11&type=chunk) - The fiscal year 2026 effective tax rate is expected to remain at **20.0%**, consistent with fiscal year 2025[11](index=11&type=chunk) - The diluted EPS guidance does not include any future share buybacks or significant economic disruptions or downturns[11](index=11&type=chunk) [Consolidated Condensed Statements of Income](index=3&type=section&id=Consolidated%20Condensed%20Statements%20of%20Income) This section presents the unaudited consolidated condensed statements of income for Cintas Corporation for the three months ended August 31, 2025, and August 31, 2024, detailing revenue, costs, operating income, and net income Consolidated Condensed Statements of Income (Unaudited, In thousands except per share data) | | Three Months Ended | | | | :-------------------------------------- | :---------------- | :---------------- | :------- | | | August 31, 2025 | August 31, 2024 | % Change | | **Revenue:** | | | | | Uniform rental and facility services | $ 2,091,066 | $ 1,933,839 | 8.1% | | Other | 627,056 | 567,748 | 10.4% | | **Total revenue** | **2,718,122** | **2,501,587** | **8.7%** | | **Costs and expenses:** | | | | | Cost of uniform rental and facility services | 1,052,553 | 981,163 | 7.3% | | Cost of other | 299,008 | 268,293 | 11.4% | | Selling and administrative expenses | 748,702 | 691,100 | 8.3% | | **Operating income** | **617,859** | **561,031** | **10.1%** | | Interest income | (2,209) | (1,250) | 76.7% | | Interest expense | 24,161 | 25,619 | (5.7)% | | **Income before income taxes** | **595,907** | **536,662** | **11.0%** | | Income taxes | 104,767 | 84,629 | 23.8% | | **Net income** | **$ 491,140** | **$ 452,033** | **8.7%** | | Basic earnings per share | $ 1.21 | $ 1.12 | 8.0% | | Diluted earnings per share | $ 1.20 | $ 1.10 | 9.1% | | Basic weighted average common shares outstanding | 403,292 | 403,382 | | | Diluted weighted average common shares outstanding | 409,294 | 410,496 | | [Supplemental Financial Data](index=4&type=section&id=Supplemental%20Financial%20Data) This section provides additional financial details, including a breakdown of gross margins by service type, a reconciliation of non-GAAP free cash flow, and a detailed segment-level performance analysis for the first quarter of fiscal 2026 and 2025 [Gross Margin and Net Income Margin Results](index=4&type=section&id=Gross%20Margin%20and%20Net%20Income%20Margin%20Results) Analysis of gross margin performance for uniform rental and facility services, other services, and total gross margin, alongside the net income margin for the first quarter of fiscal 2026 compared to the prior year Gross Margin and Net Income Margin Results | | Three Months Ended | | :------------------------------------ | :---------- | :---------------- | | | August 31, 2025 | August 31, 2024 | | Uniform rental and facility services gross margin | 49.7% | 49.3% | | Other gross margin | 52.3% | 52.7% | | Total gross margin | 50.3% | 50.1% | | Net income margin | 18.1% | 18.1% | [Non-GAAP Financial Measures: Free Cash Flow](index=4&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) This section reconciles net cash provided by operations (GAAP) to free cash flow (non-GAAP), which management uses to evaluate the company's financial performance and its ability to fund ongoing business operations and growth Computation of Free Cash Flow (In thousands) | | Three Months Ended | | :-------------------------- | :---------------- | :---------------- | | | August 31, 2025 | August 31, 2024 | | Net cash provided by operations | $ 414,481 | $ 460,357 | | Capital expenditures | (101,957) | (92,921) | | Free cash flow | $ 312,524 | $ 367,436 | - Management uses **free cash flow** to assess the Company's **financial performance**, believing it is useful to investors as it relates **operating cash flow** to capital spent for continuing, improving, and growing business operations[19](index=19&type=chunk) [Supplemental Segment Data](index=5&type=section&id=SUPPLEMENTAL%20SEGMENT%20DATA) Detailed financial data is provided for Cintas' key segments: Uniform Rental and Facility Services, First Aid and Safety Services, and All Other, showing revenue, cost of sales, gross margin, selling and administrative expenses, and operating income for the first quarter of fiscal 2026 and 2025 Supplemental Segment Data (In thousands) | | Uniform Rental and Facility Services | First Aid and Safety Services | All Other | Total | | :------------------------------------ | :-------------------------------- | :---------------------------- | :---------- | :---------- | | **For the three months ended August 31, 2025** | | | | | | Revenue | $ 2,091,066 | $ 334,657 | $ 292,399 | $ 2,718,122 | | Cost of sales | 1,052,553 | 144,489 | 154,519 | 1,351,561 | | Gross margin | 1,038,513 | 190,168 | 137,880 | 1,366,561 | | Selling and administrative expenses | 538,576 | 109,841 | 100,285 | 748,702 | | Operating income | $ 499,937 | $ 80,327 | $ 37,595 | $ 617,859 | | **For the three months ended August 31, 2024** | | | | | | Revenue | $ 1,933,839 | $ 292,567 | $ 275,181 | $ 2,501,587 | | Cost of sales | 981,163 | 123,764 | 144,529 | 1,249,456 | | Gross margin | 952,676 | 168,803 | 130,652 | 1,252,131 | | Selling and administrative expenses | 506,238 | 97,515 | 87,347 | 691,100 | | Operating income | $ 446,438 | $ 71,288 | $ 43,305 | $ 561,031 | [Consolidated Condensed Balance Sheets](index=6&type=section&id=Consolidated%20Condensed%20Balance%20Sheets) This section presents the unaudited consolidated condensed balance sheets for Cintas Corporation as of August 31, 2025, and May 31, 2025, detailing assets, liabilities, and shareholders' equity Consolidated Condensed Balance Sheets (In thousands) | | August 31, 2025 | May 31, 2025 | | :------------------------------------------ | :---------------- | :---------------- | | **ASSETS** | | | | Current assets: | | | | Cash and cash equivalents | $ 138,143 | $ 263,973 | | Accounts receivable, net | 1,421,047 | 1,417,381 | | Inventories, net | 449,739 | 447,408 | | Uniforms and other rental items in service | 1,172,321 | 1,137,361 | | Prepaid expenses and other current assets | 194,676 | 170,046 | | Total current assets | 3,375,926 | 3,436,169 | | Property and equipment, net | 1,677,021 | 1,652,474 | | Investments | 369,503 | 339,518 | | Goodwill | 3,410,729 | 3,400,227 | | Service contracts, net | 298,025 | 309,828 | | Operating lease right-of-use assets, net | 244,067 | 224,383 | | Other assets, net | 462,419 | 462,642 | | **Total Assets** | **$ 9,837,690** | **$ 9,825,241** | | **LIABILITIES AND SHAREHOLDERS' EQUITY** | | | | Current liabilities: | | | | Accounts payable | $ 462,315 | $ 485,109 | | Accrued compensation and related liabilities | 135,185 | 229,538 | | Accrued liabilities | 779,672 | 875,077 | | Income taxes, current | 78,956 | 4,034 | | Operating lease liabilities, current | 51,691 | 50,744 | | Total current liabilities | 1,507,819 | 1,644,502 | | Long-term liabilities: | | | | Debt due after one year | 2,425,757 | 2,424,999 | | Deferred income taxes | 484,443 | 471,740 | | Operating lease liabilities | 197,818 | 178,738 | | Accrued liabilities | 466,153 | 420,781 | | Total long-term liabilities | 3,574,171 | 3,496,258 | | Shareholders' equity: | | | | Common stock, no par value, and paid-in capital | 2,694,077 | 2,593,479 | | Retained earnings | 12,107,250 | 11,798,451 | | Treasury stock | (10,125,516) | (9,791,838) | | Accumulated other comprehensive income | 79,889 | 84,389 | | Total shareholders' equity | 4,755,700 | 4,684,481 | | **Total Liabilities and Shareholders' Equity** | **$ 9,837,690** | **$ 9,825,241** | [Consolidated Condensed Statements of Cash Flows](index=7&type=section&id=Consolidated%20Condensed%20Statements%20of%20Cash%20Flows) This section presents the unaudited consolidated condensed statements of cash flows for Cintas Corporation for the three months ended August 31, 2025, and August 31, 2024, detailing cash flows from operating, investing, and financing activities Consolidated Condensed Statements of Cash Flows (Unaudited, In thousands) | | Three Months Ended | | :---------------------------------------------------------- | :---------------- | :---------------- | | | August 31, 2025 | August 31, 2024 | | **Cash flows from operating activities:** | | | | Net income | $ 491,140 | $ 452,033 | | Adjustments to reconcile net income to net cash provided by operating activities: | | | | Depreciation | 77,589 | 73,838 | | Amortization of intangible assets and capitalized contract costs | 48,348 | 46,554 | | Stock-based compensation | 30,348 | 33,367 | | Deferred income taxes | 13,496 | 1,887 | | Change in current assets and liabilities, net of acquisitions of businesses: | | | | Accounts receivable, net | (3,635) | (49,129) | | Inventories, net | (2,398) | 11,318 | | Uniforms and other rental items in service | (34,760) | (20,144) | | Prepaid expenses and other current assets and capitalized contract costs | (62,382) | (80,282) | | Accounts payable | (22,501) | 56,698 | | Accrued compensation and related liabilities | (94,275) | (86,965) | | Accrued liabilities and other | (101,114) | (44,268) | | Income taxes, current | 74,625 | 65,450 | | **Net cash provided by operating activities** | **414,481** | **460,357** | | **Cash flows from investing activities:** | | | | Capital expenditures | (101,957) | (92,921) | | Purchases of investments | (6,538) | (7,124) | | Acquisitions of businesses, net of cash acquired | (7,602) | (9,436) | | Other, net | (130) | 1 | | **Net cash used in investing activities** | **(116,227)** | **(109,480)** | | **Cash flows from financing activities:** | | | | Issuance of commercial paper, net | — | 166,000 | | Proceeds from exercise of stock-based compensation awards | 2,669 | 231 | | Dividends paid | (157,766) | (138,237) | | Repurchase of common stock | (266,097) | (614,802) | | Other, net | (2,807) | (4,461) | | **Net cash used in financing activities** | **(424,001)** | **(591,269)** | | Effect of exchange rate changes on cash and cash equivalents | (83) | (250) | | Net decrease in cash and cash equivalents | (125,830) | (240,642) | | Cash and cash equivalents at beginning of period | 263,973 | 342,015 | | **Cash and cash equivalents at end of period** | **$ 138,143** | **$ 101,373** |

Market Overview - Stock prices experienced a decline, with the S&P 500 index falling by 0.6%, the Nasdaq Composite decreasing nearly 1%, and the Dow Jones Industrial Average dropping by 0.2% [3] - The decline in stock prices followed a period of record highs earlier in the week, influenced by Fed Chair Jerome Powell's cautious stance on interest rate reductions [4] Federal Reserve Insights - Jerome Powell expressed concerns regarding persistent inflation and a slowing labor market, describing the current economic situation as "challenging" [4] - Investors are anticipating a potential second interest rate reduction in 2025 during the Fed's October meeting, although Powell did not confirm this expectation [4] Economic Indicators - Upcoming economic reports include new residential housing sales for August, with analysts predicting a slight dip to 650,000 from July's 652,000 [6] - Cintas Corporation is expected to report an EPS of $1.20 for the August quarter, an increase from $1.10 in the prior year [6] - Uranium Energy is projected to report a loss per share of $0.04 for the July quarter, compared to a $0.03 loss in the previous year [6] - KB Home aims to exceed a consensus EPS estimate of $1.51 for the August quarter, down from $2.04 in the prior year [6]

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