Cintas Corporation Announces Fiscal 2026 Third Quarter Results

Computation of Free Cash Flow

Nine Months Ended

(In thousands)

February 28,

2026

February 28,

2025

Net cash provided by operations

$

1,567,176

$

1,525,587

Capital expenditures

(299,107

)

(294,260

)

Free cash flow

$

1,268,069

$

1,231,327

SUPPLEMENTAL SEGMENT DATA

(In thousands)

Uniform Rental

and Facility

Services

First Aid

and Safety

Services

All

Other

Total

For the three months ended February 28, 2026

Revenue

$

2,177,453

$

346,823

$

317,168

$

2,841,444

Cost of sales

1,083,019

145,176

164,793

1,392,988

Gross margin

1,094,434

201,647

152,375

1,448,456

Selling and administrative expenses

573,409

114,306

100,837

788,552

Operating income

$

521,025

$

87,341

$

51,538

$

659,904

For the three months ended February 28, 2025

Revenue

$

2,021,144

$

301,759

$

286,256

$

2,609,159

Cost of sales

1,009,660

129,626

150,532

1,289,818

Gross margin

1,011,484

172,133

135,724

1,319,341

Selling and administrative expenses

522,001

100,600

86,887

709,488

Operating income

$

489,483

$

71,533

$

48,837

$

609,853

For the nine months ended February 28, 2026

Revenue

$

6,423,919

$

1,023,720

$

911,919

$

8,359,558

Cost of sales

3,216,790

434,303

480,963

4,132,056

Gross margin

3,207,129

589,417

430,956

4,227,502

Selling and administrative expenses

1,660,436

334,745

298,844

2,294,025

Operating income

$

1,546,693

$

254,672

$

132,112

$

1,933,477

For the nine months ended February 28, 2025

Revenue

$

5,945,393

$

893,693

$

833,443

$

7,672,529

Cost of sales

3,004,875

381,272

438,207

3,824,354

Gross margin

2,940,518

512,421

395,236

3,848,175

Selling and administrative expenses

1,532,238

294,377

259,286

2,085,901

Operating income

$

1,408,280

$

218,044

$

135,950

$

1,762,274

Cintas Corporation

Consolidated Condensed Balance Sheets

(In thousands)

February 28,
2026

May 31,
2025

(Unaudited)

ASSETS

Current assets:

Cash and cash equivalents

$

183,204

$

263,973

Accounts receivable, net

1,542,973

1,417,381

Inventories, net

450,501

447,408

Uniforms and other rental items in service

1,240,648

1,137,361

Prepaid expenses and other current assets

185,608

170,046

Total current assets

3,602,934

3,436,169

Property and equipment, net

1,716,864

1,652,474

Investments

407,138

339,518

Goodwill

3,499,028

3,400,227

Service contracts, net

286,746

309,828

Operating lease right-of-use assets, net

255,290

224,383

Other assets, net

465,721

462,642

$

10,233,721

$

9,825,241

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current liabilities:

Accounts payable

$

481,010

$

485,109

Accrued compensation and related liabilities

209,995

229,538

Accrued liabilities

831,037

875,077

Income taxes, current

11,240

4,034

Operating lease liabilities, current

54,130

50,744

Debt due within one year

229,490

—

Total current liabilities

1,816,902

1,644,502

Long-term liabilities:

Debt due after one year

2,427,301

2,424,999

Deferred income taxes

507,608

471,740

Operating lease liabilities

207,266

178,738

Accrued liabilities

486,261

420,781

Total long-term liabilities

3,628,436

3,496,258

Shareholders’ equity:

Preferred stock, no par value:

100 shares authorized, none outstanding

—

—

Common stock, no par value, and paid-in capital:

1,700,000 shares authorized

FY 2026: 779,263 issued and 400,015 outstanding

FY 2025: 776,936 issued and 402,948 outstanding

2,807,548

2,593,479

Retained earnings

12,743,710

11,798,451

Treasury stock:

FY 2026: 379,248 shares

FY 2025: 373,988 shares

(10,839,028

)

(9,791,838

)

Accumulated other comprehensive income

76,153

84,389

Total shareholders’ equity

4,788,383

4,684,481

$

10,233,721

$

9,825,241

Cintas Corporation

Consolidated Condensed Statements of Cash Flows

(Unaudited)

(In thousands)

Nine Months Ended

February 28,

2026

February 28,

2025

Cash flows from operating activities:

Net income

$

1,488,979

$

1,364,025

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation

237,034

225,714

Amortization of intangible assets and capitalized contract costs

145,074

142,011

Stock-based compensation

96,950

97,586

Gain on sale of property and equipment

—

(19,341

)

Deferred income taxes

37,940

(7,286

)

Change in current assets and liabilities, net of acquisitions of businesses:

Accounts receivable, net

(124,798

)

(158,761

)

Inventories, net

(3,413

)

(8,053

)

Uniforms and other rental items in service

(101,861

)

(60,502

)

Prepaid expenses and other current assets and capitalized contract costs

(138,191

)

(146,062

)

Accounts payable

(4,213

)

72,799

Accrued compensation and related liabilities

(19,573

)

(4,562

)

Accrued liabilities and other

(52,952

)

47,617

Income taxes, current

6,200

(19,598

)

Net cash provided by operating activities

1,567,176

1,525,587

Cash flows from investing activities:

Capital expenditures

(299,107

)

(294,260

)

Purchases of investments

(8,271

)

(7,064

)

Proceeds from sale of property and equipment

—

23,972

Acquisitions of businesses, net of cash acquired

(102,685

)

(198,808

)

Other, net

(88

)

1,788

Net cash used in investing activities

(410,151

)

(474,372

)

Cash flows from financing activities:

Issuance of commercial paper, net

229,490

—

Proceeds from exercise of stock-based compensation awards

3,156

699

Dividends paid

(520,850

)

(453,703

)

Repurchase of common stock

(933,227

)

(678,129

)

Other, net

(17,542

)

(14,879

)

Net cash used in financing activities

(1,238,973

)

(1,146,012

)

Effect of exchange rate changes on cash and cash equivalents

1,179

(3,790

)

Net decrease in cash and cash equivalents

(80,769

)

(98,587

)

Cash and cash equivalents at beginning of period

263,973

342,015

Cash and cash equivalents at end of period

$

183,204

$

243,428