# Cintas Corporation (CTAS) Q1 2026 Financial Results Summary
Cintas Corporation (Nasdaq: CTAS) released its fiscal 2026 first quarter results on September 24, 2025, detailing significant growth across various key metrics. Here is a summary of the financial performance for the quarter ended August 31, 2025:
– **Revenue:**
– Total revenue reached **$2.72 billion**, an increase of **8.7%** compared to **$2.50 billion** in the first quarter of fiscal 2025.
– Revenue growth was bolstered by **0.9%** from acquisitions.
– The organic revenue growth rate for this quarter was **7.8%**, adjusting for acquisitions and foreign currency fluctuations.
– **Gross Margin:**
– Gross margin increased to **$1.37 billion**, up **9.1%** compared to **$1.25 billion** in the same quarter last year.
– Gross margin percentage of revenue was **50.3%**, a slight improvement from **50.1%** last year, indicating an increase of **20 basis points**.
– **Operating Income:**
– Operating income rose to **$617.9 million**, up by **10.1%** from **$561.0 million** in the prior year’s quarter.
– Operating income as a percentage of revenue was **22.7%**, an increase from **22.4%** year-on-year.
– **Net Income:**
– Net income for the quarter was **$491.1 million**, representing an increase of **8.7%** compared to **$452.0 million** in Q1 2025.
– The effective tax rate for this quarter was **17.6%**, higher than the **15.8%** in the same period last year, influenced by discrete items related to stock-based compensation.
– **Earnings Per Share (EPS):**
– Diluted EPS for Q1 2026 was **$1.20**, an increase of **9.1%** compared to **$1.10** from the previous quarter.
– **Dividends and Share Repurchase:**
– Cintas declared a quarterly dividend of **$182.3 million** paid on September 15, 2025, marking an increase of **15.4%** from the same quarter last year.
– The company repurchased shares amounting to **$347.4 million** under its share buyback program as of September 23, 2025.
– **Cash Flow:**
– Net cash provided by operations during the quarter amounted to **$414.5 million**, down from **$460.4 million** in Q1 2025.
– Free cash flow was reported at **$312.5 million**, compared to **$367.4 million** in the prior-year quarter.
– **Guidance:**
– Cintas has raised its full fiscal year 2026 revenue guidance from a range of **$11.00 billion to $11.15 billion** to **$11.06 billion to $11.18 billion**.
– Diluted EPS guidance was also increased from **$4.71 to $4.85** to **$4.74 to $4.86**.
– The company maintains the same projected effective tax rate of **20.0%** for fiscal 2026, consistent with fiscal 2025.
– **Segment Performance:**
– Uniform rental and facility services revenue reached **$2.09 billion**, up **8.1%** from **$1.93 billion** in Q1 2025.
– Other revenue segments also saw growth, with revenues increasing **10.4%** to **$627.1 million** from **$567.7 million** last year.
Overall, Cintas reported strong performance driven by an effective mix of revenue growth and margin expansion, showcasing the company’s strategic operations and commitment to shareholder returns through dividends and share repurchases.
| 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 |
| 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: | ||
| Preferred stock, no par value: | — | — |
| 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 |
