Cintas slightly beats Q3 revenue estimates, raises FY revenue and profit guidance

Overview

• U.S. uniform and facility services provider's fiscal Q3 revenue rose 8.9%, slightly beating analyst expectations

• EPS for fiscal Q3 grew 9.7% yr/yr

• Company entered agreement to acquire UniFirst and raised full-year revenue and EPS guidance

Outlook

• Cintas raises fiscal 2026 revenue guidance to $11.21 bln-$11.24 bln, excluding UniFirst impact

• Company lifts fiscal 2026 adjusted diluted EPS outlook to $4.86-$4.90, excluding UniFirst costs

• Cintas says diversified customer base and execution position it well for continued growth

Result Drivers

• ORGANIC GROWTH - 8.2% organic revenue growth driven by strong performance in route-based businesses, per CEO Todd Schneider

• GROSS MARGIN IMPROVEMENT - Gross margin as a percent of revenue reached an all-time high of 51.0%, up 40 basis points from last year

• INVESTMENTS IN TECHNOLOGY AND CAPACITY - Co said investments in technology, capacity and talent contributed to improved results

Company press release: ID:nBw1z3KyDa

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 9 "strong buy" or "buy", 11 "hold" and 1 "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 $224.50, about 26% above its March 24 closing price of $178.13

• The stock recently traded at 34 times the next 12-month earnings vs. a P/E of 36 three months ago

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