Cintas Corporation Announces Fiscal 2027 First Quarter Results

Computation of Free Cash Flow

Three Months Ended

(In thousands)

August 31, 2026

August 31, 2025

Net cash provided by operations

$

572,331

$

414,481

Capital expenditures

(107,532

)

(101,957

)

Free cash flow

$

464,799

$

312,524

Computation of Organic Revenue Growth

Three Months Ended

August 31, 2026

August 31, 2025

Growth

%

A

B

G

Revenue

$

3,013,981

$

2,718,122

10.9%

G=(A-B)/B

C

D

Workdays in the period

66

65

E

F

H

Workday adjusted revenue

$

2,968,315

$

2,718,122

9.2%

E=(A/C)*D

F=(B/D)*D

H=(E-F)/F

Acquisition and foreign currency exchange impact, net

(0.3)%

Organic revenue growth

8.9%

SUPPLEMENTAL SEGMENT DATA

(In thousands)

Uniform Rental

and Facility Services

First Aid

and Safety Services

All

Other

Corporate

Total

For the three months ended August 31, 2026

Revenue

$

2,294,736

$

388,517

$

330,728

$

—

$

3,013,981

Cost of sales

1,128,884

164,700

166,854

—

1,460,438

Gross margin

1,165,852

223,817

163,874

—

1,553,543

Selling and administrative expenses

590,764

124,275

112,205

—

827,244

UniFirst Corporation transaction expenses

—

—

—

14,412

14,412

Operating income (loss)

$

575,088

$

99,542

$

51,669

$

(14,412

)

$

711,887

For the three months ended August 31, 2025

Revenue

$

2,091,066

$

334,657

$

292,399

$

—

$

2,718,122

Cost of sales

1,052,553

144,489

154,519

—

1,351,561

Gross margin

1,038,513

190,168

137,880

—

1,366,561

Selling and administrative expenses

538,576

109,841

100,285

—

748,702

Operating income

$

499,937

$

80,327

$

37,595

$

—

$

617,859

Cintas Corporation

Consolidated Condensed Balance Sheets

(In thousands)

August 31,
2026

May 31,
2026

(Unaudited)

ASSETS

Current assets:

Cash and cash equivalents

$

243,599

$

289,018

Accounts receivable, net

1,587,573

1,555,190

Inventories, net

433,286

446,435

Uniforms and other rental items in service

1,309,995

1,276,174

Prepaid expenses and other current assets

357,292

286,225

Total current assets

3,931,745

3,853,042

Property and equipment, net

1,768,378

1,740,501

Investments

448,875

438,662

Goodwill

3,548,696

3,544,212

Service contracts, net

272,972

287,869

Operating lease right-of-use assets, net

274,590

271,088

Other assets, net

407,479

393,766

$

10,652,735

$

10,529,140

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current liabilities:

Accounts payable

$

506,502

$

461,157

Accrued compensation and related liabilities

159,159

237,042

Accrued liabilities

841,215

889,198

Income taxes, current

140,129

44,070

Operating lease liabilities, current

58,370

56,505

Debt due within one year

999,291

998,987

Total current liabilities

2,704,666

2,686,959

Long-term liabilities:

Debt due after one year

1,429,554

1,429,086

Deferred income taxes

548,906

537,919

Operating lease liabilities

224,159

221,379

Accrued liabilities

540,918

513,910

Total long-term liabilities

2,743,537

2,702,294

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 2027: 780,726 issued and 399,517 outstanding

FY 2026: 779,537 issued and 400,147 outstanding

2,931,963

2,851,129

Retained earnings

13,416,890

13,073,999

Treasury stock:

FY 2027: 381,209 shares

FY 2026: 379,390 shares

(11,235,046

)

(10,869,708

)

Accumulated other comprehensive income

90,725

84,467

Total shareholders’ equity

5,204,532

5,139,887

$

10,652,735

$

10,529,140

Cintas Corporation

Consolidated Condensed Statements of Cash Flows

(Unaudited)

(In thousands)

Three Months Ended

August 31, 2026

August 31, 2025

Cash flows from operating activities:

Net income

$

551,711

$

491,140

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

Depreciation

78,918

77,589

Amortization of intangible assets and capitalized contract costs

48,408

48,348

Stock-based compensation

31,047

30,348

Deferred income taxes

9,132

13,496

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

Accounts receivable, net

(32,734

)

(3,635

)

Inventories, net

12,817

(2,398

)

Uniforms and other rental items in service

(33,880

)

(34,760

)

Prepaid expenses and other current assets and capitalized contract costs

(108,897

)

(62,382

)

Accounts payable

46,486

(22,501

)

Accrued compensation and related liabilities

(77,801

)

(94,275

)

Accrued liabilities and other

(49,338

)

(101,114

)

Income taxes, current

96,462

74,625

Net cash provided by operating activities

572,331

414,481

Cash flows from investing activities:

Capital expenditures

(107,532

)

(101,957

)

Purchases of investments

(7,179

)

(6,538

)

Acquisitions of businesses, net of cash acquired

(3,916

)

(7,602

)

Other, net

1,260

(130

)

Net cash used in investing activities

(117,367

)

(116,227

)

Cash flows from financing activities:

Proceeds from exercise of stock-based compensation awards

159

2,669

Dividends paid

(180,700

)

(157,766

)

Repurchase of common stock

(315,710

)

(266,097

)

Other, net

(3,917

)

(2,807

)

Net cash used in financing activities

(500,168

)

(424,001

)

Effect of exchange rate changes on cash and cash equivalents

(215

)

(83

)

Net decrease in cash and cash equivalents

(45,419

)

(125,830

)

Cash and cash equivalents at beginning of period

289,018

263,973

Cash and cash equivalents at end of period

$

243,599

$

138,143