Core Insights - Cintas Corporation (CTAS) reported first-quarter fiscal 2026 earnings of $1.20 per share, exceeding the Zacks Consensus Estimate of $1.19, with a year-over-year increase of 9.1% [1] - Total revenues reached $2.72 billion, surpassing the consensus estimate of $2.70 billion, and reflecting an 8.7% year-over-year growth driven by higher segmental revenues [1] Segmental Results - The Uniform Rental and Facility Services segment generated revenues of $2.09 billion, accounting for 76.9% of total sales, marking an 8.1% increase year over year [2] - The First Aid and Safety Services segment reported revenues of $334.7 million, representing 12.3% of total sales, with a year-over-year growth of 14.4% [3] - Revenues from All Other businesses totaled $292.4 million, making up 10.8% of total sales, and increased by 6.3% year over year [3] Margin Profile - Cintas' cost of sales rose 8.2% year over year to $1.35 billion, constituting 49.7% of net sales, while gross profit increased 9.1% to $1.37 billion, resulting in a gross margin of 50.3% compared to 50.1% in the previous year [4] - Selling and administrative expenses totaled $748.7 million, reflecting an 8.3% increase from the prior year, representing 27.5% of net sales [5] - Operating income increased by 10.1% year over year to $617.9 million, with an operating margin of 22.7% compared to 22.4% in the year-ago quarter [5] Balance Sheet & Cash Flow - As of the end of the first three months of fiscal 2026, Cintas had cash and cash equivalents of $138.1 million, down from $264 million at the end of fiscal 2025, while long-term debt slightly increased to about $2.43 billion [6] - The company generated net cash of $414.5 million from operating activities, a decrease of 10% year over year, with capital expenditures totaling $102 million, up 9.7% [7] - Free cash flow decreased by 14.9% year over year to $312.5 million, and share repurchases amounted to $266.1 million compared to $614.8 million in the previous year [7] FY26 Guidance - Cintas raised its fiscal 2026 revenue guidance to a range of $11.06-$11.18 billion, up from the previous estimate of $11-$11.15 billion, and EPS guidance was adjusted to $4.74-$4.86 from $4.71-$4.85 [9][10] - The company anticipates net interest expenses of approximately $97 million, compared to $95 million in fiscal 2025, with an expected effective tax rate of 20% [10]

Cintas (CTAS) reported $2.72 billion in revenue for the quarter ended August 2025, representing a year-over-year increase of 8.7%. EPS of $1.20 for the same period compares to $1.10 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $2.69 billion, representing a surprise of +0.87%. The company delivered an EPS surprise of +0.84%, with the consensus EPS estimate being $1.19.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street ex ...

Core Insights - Cintas (CTAS) is expected to report quarterly earnings of $1.19 per share, reflecting an 8.2% increase year over year, with revenues projected at $2.69 billion, a 7.7% increase from the previous year [1] Earnings Estimates - Analysts have not revised the consensus EPS estimate for the quarter in the past 30 days, indicating stability in projections [1] - Changes in earnings estimates are crucial for predicting investor reactions, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock performance [2] Revenue Projections - Analysts estimate 'Revenue- Uniform Rental and Facility Services' at $2.07 billion, indicating a 6.8% year-over-year increase [4] - 'Revenue- Other' is projected to reach $624.15 million, reflecting a 9.9% increase from the prior year [4] - 'Revenue- All Other' is expected to be $294.27 million, showing a 6.9% increase year over year [4] - 'Revenue- First Aid and Safety Services' is forecasted at $329.18 million, indicating a 12.5% increase from the previous year [5] Stock Performance - Cintas shares have returned -7.7% over the past month, contrasting with the Zacks S&P 500 composite's +3% change [5] - Cintas holds a Zacks Rank 2 (Buy), suggesting it is expected to outperform the overall market in the near future [5]

Core Insights - Cintas reported revenue of $2.67 billion for the quarter ended May 2025, reflecting an 8% increase year-over-year and a surprise of +1.57% over the Zacks Consensus Estimate of $2.63 billion [1] - Earnings per share (EPS) for the quarter was $1.09, up from $1.00 in the same quarter last year, with an EPS surprise of +1.87% compared to the consensus estimate of $1.07 [1] Revenue Breakdown - Revenue from Uniform Rental and Facility Services was $2.03 billion, slightly above the average estimate of $2.02 billion, representing a +6.3% year-over-year change [4] - Revenue from Other services reached $636.97 million, exceeding the estimated $602.77 million, marking a +13.8% increase compared to the previous year [4] - Revenue from All Other services was $312.58 million, surpassing the average estimate of $296.5 million, with a +10.8% year-over-year change [4] - Revenue from First Aid and Safety Services was $324.4 million, above the estimated $307.63 million, reflecting a +16.8% increase year-over-year [4] Operating Income Insights - Operating income for Uniform Rental and Facility Services was $465.11 million, slightly below the estimated $472.32 million [4] - Operating income for First Aid and Safety Services was $76.68 million, exceeding the average estimate of $71.85 million [4] - Operating income for All Other services was $55.66 million, above the estimated $52.88 million [4] Stock Performance - Cintas shares have returned -2.9% over the past month, contrasting with the Zacks S&P 500 composite's +4.2% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Core Viewpoint - Analysts project that Cintas (CTAS) will report quarterly earnings of $1.07 per share, reflecting a 7% year-over-year increase, with revenues expected to reach $2.63 billion, a 6.3% increase from the same quarter last year [1] Earnings Estimates - Revisions to earnings estimates are crucial indicators for predicting investor actions regarding the stock, with empirical research showing a strong correlation between earnings estimate trends and short-term stock price performance [2] Key Metrics Analysis - Analysts estimate 'Total Revenue- Uniform Rental and Facility Services' will reach $2.02 billion, indicating a year-over-year change of +5.6% [4] - 'Total Revenue- Other' is projected to be $601.96 million, reflecting a +7.5% change from the year-ago quarter [4] - 'Revenue- All Other' is expected to reach $295.60 million, suggesting a +4.8% year-over-year change [4] Operating Income Projections - 'Revenue- First Aid and Safety Services' is forecasted to be $307.85 million, indicating a +10.9% year-over-year change [5] - 'Operating income- Uniform Rental and Facility Services' is expected to be $472.66 million, up from $432.95 million in the same quarter last year [5] - 'Operating income- First Aid and Safety Services' is projected at $71.95 million, compared to $63.33 million from the previous year [5] - 'Operating income- All Other' is estimated to arrive at $52.00 million, slightly up from $51.32 million year-over-year [6] Stock Performance - Cintas shares have experienced a -3% change in the past month, contrasting with a +4% move of the Zacks S&P 500 composite, with a Zacks Rank 2 (Buy) indicating expected outperformance in the near future [6]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 increased by 8.4% to $2,610 million, with an organic growth rate of 7.9% [5][11] - Gross margin grew to 50.6%, an all-time high, up from 49.4% last year, reflecting an increase of 120 basis points [6][12] - Operating income rose by 17.1% to $609.9 million, with an operating margin of 23.4%, up from 21.6% [6][16] - Diluted EPS increased by 17.7% to $1.13, compared to $0.96 last year [6][17] - Free cash flow for the first nine months of the year increased by 14.5% over the prior year [7][17] Business Line Data and Key Metrics Changes - Uniform Rental and Facility Services experienced organic growth of 7% [11] - First Aid and Safety Services grew by 15%, while Fire Protection Services increased by 10.6% [11] - Uniform Direct Sale saw a decline of 2.3% [11] Market Data and Key Metrics Changes - Foreign exchange rates negatively impacted third quarter revenue growth by 40 basis points [11][19] - The company expects the second half of the year to be negatively impacted by approximately 40 basis points due to foreign currency exchange rate fluctuations [19] Company Strategy and Development Direction - The company is focused on operational excellence, leveraging technology and supply chain initiatives to improve efficiency and customer experience [6][7] - Strategic acquisitions are a priority, with ongoing efforts to consolidate mid-sized private platforms in the rental uniform and other verticals [21][37] - The company aims to maintain a strong value proposition to customers, particularly in uncertain economic environments [26][50] Management's Comments on Operating Environment and Future Outlook - Management noted that customer purchasing behaviors remain stable, with attractive new business and retention rates [26] - The company is monitoring the macroeconomic environment closely but remains confident in its ability to grow despite uncertainties [50] - Management emphasized the importance of outsourcing as a solution for customers looking to reduce costs [112][115] Other Important Information - The company terminated discussions regarding the acquisition of Unifirst, citing a lack of substantive engagement on key transaction terms [21] - The company is investing in technology, including the rollout of SAP and other systems to enhance operational efficiency [99] Q&A Session Summary Question: Changes in customer purchasing behaviors and sales cycles - Management indicated that customer behavior remains stable, with no significant changes in sales cycles [26] Question: Pricing trends in the current quarter - Management noted that pricing is at historic levels, with no significant changes observed [28] Question: Impact of tariffs on COGS - Management stated it is too early to assess the impact of potential tariffs, but the supply chain organization is a strategic advantage [32] Question: M&A opportunities in the market - Management confirmed that M&A remains a key strategy, with ongoing efforts to pursue tuck-in acquisitions [36] Question: Drivers of impressive margins - Management highlighted strong execution, operational efficiencies, and technology investments as key drivers of margins [40] Question: Outlook for fiscal year 2026 - Management is optimistic about growth potential, emphasizing the company's ability to adapt to various economic conditions [50] Question: Update on cross-selling efforts - Management reported successful cross-selling initiatives, particularly in fire and first aid products [110] Question: Trends in outsourcing during budget tightening - Management noted that outsourcing tends to accelerate during budget cuts, as customers seek to reduce upfront costs [112]