Uniform rental firm Cintas Q1 revenue beats estimates, raises annual outlook

Overview

• Cintas fiscal Q1 2026 revenue rises 8.7% yr/yr, beating analyst expectations, per LSEG data

• Net income for fiscal Q1 2026 increases 8.7% to $491.1 mln

• Co raises fiscal 2026 revenue and EPS guidance, reflecting confidence in growth

Outlook

• Cintas raises fiscal 2026 revenue guidance to $11.06 bln-$11.18 bln

• Cintas increases fiscal 2026 EPS guidance to $4.74-$4.86

• Company assumes no future acquisitions in fiscal 2026 guidance

• Cintas expects fiscal 2026 effective tax rate to be 20%

Result Drivers

• ACQUISITIONS - Revenue growth positively impacted by 0.9% due to acquisitions

• ORGANIC GROWTH - Organic revenue growth rate was 7.8%, adjusting for acquisitions and currency fluctuations

• MARGIN EXPANSION - Gross margin increased by 20 basis points to 50.3%

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 8 "strong buy" or "buy", 9 "hold" and 3 "sell" or "strong sell"

• The average consensus recommendation for the business support services peer group is "buy."

• Wall Street's median 12-month price target for Cintas Corp is $226.50, about 11.4% above its September 23 closing price of $200.59

• The stock recently traded at 40 times the next 12-month earnings vs. a P/E of 47 three months ago

Press Release: ID:nBw88wYka