Executive Brief

Cintas Corporation reported fiscal 2026 Q1 results with revenue of $2.72 billion, up 8.7% YoY, driven by 7.8% organic growth and 0.9% acquisitions (Item 2.02, Exhibit 99).
Gross margin increased 9.1% to $1.37 billion, with margin rate improving 20 bps to 50.3%.
Operating income rose 10.1% to $617.9 million, operating margin at 22.7%.
Net income grew 8.7% to $491.1 million; diluted EPS increased 9.1% to $1.20.
Effective tax rate was 17.6% in Q1, impacted by discrete items related to stock-based compensation.
Share repurchases totaled $347.4 million during Q1 and through September 23, 2025.
Quarterly dividend paid September 15, 2025, was $182.3 million, up 15.4% YoY.
Fiscal 2026 guidance raised: revenue now $11.06-$11.18 billion (from $11.00-$11.15B), diluted EPS $4.74-$4.86 (from $4.71-$4.85).
Guidance assumes no acquisitions, constant FX rates, and interest expense of ~$97 million due to refinancing.
Key risk/trigger: interest expense increase from refinancing senior notes; monitoring acquisition activity and share buybacks that may affect interest and EPS.

Item-by-Item Analysis

What happened: Cintas announced fiscal 2026 Q1 results ended August 31, 2025.
Revenue: $2.72B, +8.7% YoY; organic growth 7.8%, acquisitions 0.9%.
Gross margin: $1.37B, +9.1%; margin rate 50.3% vs. 50.1% prior year.
Operating income: $617.9M, +10.1%; margin 22.7% vs. 22.4%.
Net income: $491.1M, +8.7%.
Diluted EPS: $1.20, +9.1%.
Effective tax rate: 17.6%, impacted by discrete tax items related to stock-based compensation.
Share repurchases: $347.4M during Q1 and through Sept 23, 2025.
Dividend: $182.3M paid Sept 15, 2025, +15.4% YoY.
Fiscal 2026 guidance raised:
- Revenue: $11.06B-$11.18B (prior $11.00B-$11.15B).
- Diluted EPS: $4.74-$4.86 (prior $4.71-$4.85).
Guidance assumptions:
- No future acquisitions.
- Constant FX rates.
- Interest expense ~$97M (vs. $95M prior year), reflecting refinancing senior notes at higher rates partially offset by lower variable rate interest.
Source: (Item 2.02), (Exhibit 99, paras 1-24).

Exhibits filed:
- 99: Press release dated September 24, 2025.
- 104: Inline XBRL cover page.
Source: (Item 9.01).

Exhibit 99: Press release provides detailed financial metrics, management commentary, and updated guidance.
No other agreements or decks attached.

Revenue growth of 8.7% driven by organic and acquisition growth.
Share repurchases of $347.4 million reduce share count, supporting EPS growth.
Dividend increased by 15.4%, reflecting strong cash flow.
Interest expense expected to rise slightly due to refinancing senior notes.
EPS guidance raised modestly, reflecting operational strength and capital allocation.

Q1 ended August 31, 2025.
Dividend paid September 15, 2025.
Report and press release issued September 24, 2025.
Guidance updated for full fiscal year 2026.
No acquisitions assumed in guidance; future acquisitions or buybacks may affect interest and EPS.

Interest expense increase from refinancing senior notes at higher rates.
Impact of discrete tax items on effective tax rate.
Potential changes in share buybacks or acquisitions affecting interest expense and EPS.
FX rate fluctuations not assumed in guidance but could impact results.