Cintas beats estimates but stock edges lower

Investing.com -- Cintas Corporation (NASDAQ: CTAS) reported first-quarter results that exceeded analyst expectations, though shares fell 1.2% premarket.

The uniform and facility services provider posted adjusted earnings per share of $1.39 for the quarter ended August 31, 2026, compared to $1.20 in the prior year period. Revenue reached $3.01 billion, up 10.9% YoY from $2.72 billion and surpassing the consensus estimate of $2.98 billion.

Reported EPS of $1.36 beat the analyst estimate of $1.35 by $0.01. The company recorded $14.4 million in transaction expenses related to its proposed UniFirst Corporation acquisition, which reduced diluted EPS by $0.03.

Cintas raised its full-year fiscal 2027 revenue guidance to a range of $12.15 billion to $12.27 billion, up from its prior range of $12.10 billion to $12.25 billion. The midpoint of $12.21 billion falls slightly below the consensus estimate of $12.22 billion. The company also increased its adjusted diluted EPS guidance to $5.45 to $5.54, compared to its previous range of $5.36 to $5.50. The midpoint of $5.495 aligns with the consensus of $5.49.

"We are pleased with our start to fiscal 2027," said Todd M. Schneider, Chief Executive Officer. "Our employee-partners delivered another strong quarter, producing record revenue and record operating margin. Organic revenue growth of 8.9% and a record gross margin reflect the value we continue to provide our customers and the impact of our ongoing investments in technology, capacity and talent."

Gross margin expanded to 51.5% from 50.3% in the prior year quarter, an increase of 120 basis points. Operating income rose 15.2% to $711.9 million, representing 23.6% of revenue compared to 22.7% in the year-ago period.

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