Cintas' Q4 Earnings & Revenues Surpass Estimates, Increase Y/Y

Cintas Corporation CTAS reported fourth-quarter fiscal 2026 earnings of $1.29 per share, which beat the Zacks Consensus Estimate of $1.24 by 4%. The bottom line increased 18.3% from the year-ago quarter figure. Revenues of $2.91 billion surpassed the consensus estimate of $2.88 billion by 1% and rose 8.9% year over year.

The top line was driven by 8.4% organic revenue growth, reflecting solid demand across its route-based businesses. Record gross margins also stood out as a key highlight in the quarter.

Cintas’ Segmental Results

The company has two reportable segments, Uniform Rental and Facility Services and First Aid and Safety Services. Other businesses, like Uniform Direct Sale and Fire Protection Services, are included in All Other. Quarterly sales data are briefly discussed below.

Cintas’ Uniform Rental and Facility Services segment generated revenues of $2.20 billion, up 8.2% year over year from $2.03 billion. Segment operating income rose to $529.5 million from $465.1 million, reflecting steady demand and operating leverage.

The First Aid and Safety Services segment delivered revenues of $368.1 million, increasing 13.5% from $324.4 million in the prior-year quarter. Operating income climbed to $98.6 million from $76.7 million, supported by strong demand for safety and compliance solutions.

Revenues from the All Other segment totaled $339.4 million, up 8.6% from $312.6 million a year ago. Segment operating income increased to $59 million from $55.7 million.

Cintas Corporation Price, Consensus and EPS Surprise

Cintas Corporation price-consensus-eps-surprise-chart | Cintas Corporation Quote

Margin Profile

Cintas’ cost of sales (comprising costs related to uniform rental and facility services and others) increased 6.2% year over year to $1.42 billion. Cintas reported gross profit of $1.48 billion, up 11.6% year over year. Gross margin improved 130 basis points to 51%, marking a record high.

Selling and administrative expenses totaled $793.2 million, up 8.9% from the year-ago quarter figure. Despite this increase, operating income rose 12.7% to $673 million.

Operating margin was 23.2%, up from 22.4% in the prior-year quarter, helped by higher sales. Net income increased 14% to $511 million, with a tax rate of 21.2%.

Cintas’ Balance Sheet & Cash Flow

Exiting fiscal 2026, Cintas had cash and cash equivalents of $289 million compared with $264 million at the end of fiscal 2025. Long-term debt was about $1.43 billion compared with $2.42 billion at the end of fiscal 2025. 

In fiscal 2026, it generated net cash of $2.28 billion from operating activities, up 5.1% from the year-ago period. Capital expenditures in the same period totaled $395.1 million, down 3.4% year over year.

The company repurchased shares worth $952.1 million compared with $934.8 million in the previous fiscal year. Dividend payments totaled $701.5 million, up 14.7% year over year.

Fiscal 2027 Outlook

For fiscal 2027, the company expects revenues to be in the range of $12.10-$12.25 billion. Adjusted earnings per share are projected in the range of $5.36-$5.50. The guidance excludes any expected impacts associated with the pending UniFirst acquisition.

Management expects net interest expense of approximately $105 million and an effective tax rate of 20.2% for the year. The outlook assumes stable foreign exchange rates and excludes contributions from acquisitions.

Zacks Rank & Other Key Picks

The company currently carries a Zacks Rank #2 (Buy).  Some other top-ranked stocks from the same space are discussed below:

Duluth Holdings DLTH presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Duluth’s earnings surpassed the consensus estimate in each of the trailing four quarters. The average earnings surprise was 107.5%.  In the past 60 days, the Zacks Consensus Estimate for DLTH’s fiscal 2027 bottom line has increased 45.8%.

Columbia Sportswear COLM presently carries a Zacks Rank of 2. Columbia Sportswear’s earnings surpassed the consensus estimate in each of the trailing four quarters. The average earnings surprise was 44.1%. In the past 60 days, the Zacks Consensus Estimate for COLM’s 2026 earnings has increased 3.8%.

Vince Holding VNCE currently carries a Zacks Rank of 2. Vince Holding’s earnings topped the consensus estimate thrice and missed once in the trailing four quarters. The average earnings surprise was 635.7%. In the past 60 days, the Zacks Consensus Estimate for VNCE’s fiscal 2027 earnings has increased 59.5%.

Radical New Technology Could Hand Investors Huge Gains

Quantum Computing is the next technological revolution, and it could be even more advanced than AI.

While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.

Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.

Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Source Zacks-com