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 company reported steady customer behavior and retention rates, with no significant changes in sales cycles despite a somewhat uncertain environment [26][50] - The customer base improved slightly during the quarter [26] 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 conditions, highlighting the value proposition offered to customers [15][26] - The company is optimistic about the future of its first aid and safety services business, expecting it to maintain low double-digit growth [86][87] - Management noted that the competitive environment remains strong, with a focus on expanding the customer base among do-it-yourselfers [72][104] Other Important Information - The company has maintained 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 no-programmers - Management indicated that in pressured environments, the company helps customers free up cash flow and manage budgets, which aids in converting no-programmers [19][20] Question: Update on the selling environment and client budget trends - Management reported no significant changes in sales cycles and noted that customer retention rates remain strong [26][27] Question: Effects of decelerating non-farm payrolls on rental business - Management acknowledged the deceleration but emphasized the company's ability to grow despite employment levels [33][34] Question: Changes in competitive environment - Management stated that while the market remains competitive, the focus is on converting no-programmers rather than competing directly with traditional competitors [72] Question: Update on tariff-driven expense growth - Management acknowledged the impact of tariffs but emphasized the strength of their global supply chain and process improvements to mitigate costs [57][58] Question: Gross margins in the first aid segment - Management explained that the gross margin was flat sequentially and attributed any year-over-year changes to timing and investment strategies [66][67] Question: M&A pipeline and appetite for expansion - Management confirmed that M&A remains important, with ongoing evaluations for both tuck-in deals and larger acquisitions [80][82] Question: Impact of visa requirements on customer hiring - Management noted no material impact from changes in immigration policy on customer hiring [110] Question: Update on myCintas portal - Management highlighted the myCintas portal as a competitive advantage, though specific metrics were not disclosed for competitive reasons [105][106]

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]