Cintas Corporation — Form 10-Q Summary
Reporting period: Three months ended August 31, 2026, compared with the three months ended August 31, 2025. Cintas provides uniform rental and facility services, first aid and safety services, fire protection services, and uniform direct sales, primarily in North America.
Financial performance
| Metric | Quarter ended Aug. 31, 2026 | Prior-year quarter | Change |
|---|---|---|---|
| Revenue | $3,014.0 million | $2,718.1 million | +10.9%; organic growth 8.9% |
| Operating income | $711.9 million | $617.9 million | +15.2% |
| Operating margin | 23.6% | 22.7% | +0.9 percentage points |
| Net income | $551.7 million | $491.1 million | +12.3% |
| Diluted EPS | $1.36 | $1.20 | +13.3% |
| Operating cash flow | $572.3 million | $414.5 million | +$157.9 million |
| Capital expenditures | $107.5 million | $102.0 million | +$5.6 million |
Revenue growth included a 1.7% benefit from one additional workday, a 0.4% benefit from acquisitions, and a 0.1% adverse foreign-exchange effect. Cost efficiencies and sourcing initiatives lifted margins: uniform and facility services cost of revenue declined to 49.2% of segment revenue from 50.3%; other cost of revenue declined to 46.1% from 47.7%. The effective tax rate increased to 20.0% from 17.6%, primarily reflecting discrete items including stock-based compensation tax accounting.
- Segment growth: Uniform Rental and Facility Services revenue rose 9.7% (8.0% organic); First Aid and Safety Services rose 16.1% (14.2% organic). Other revenue, including Fire Protection and Uniform Direct Sales, rose 14.7% (11.9% organic).
- Cash generation: Operating cash flow less capital expenditures was approximately $464.8 million, versus $312.5 million a year earlier. Management attributed the operating cash-flow increase to higher net income and favorable working-capital movements, partly offset by higher prepaid expenses and receivables.
- Liquidity and debt: Cash was $243.6 million at quarter-end, down from $289.0 million at May 31, 2026. Debt due within one year was $999.3 million and long-term debt was $1,429.6 million. No commercial paper or revolving-credit borrowings were outstanding. The company has a $2.0 billion revolving facility maturing in March 2031 and reported compliance with debt covenants.
- Capital returns: The company repurchased $315.7 million of stock and paid $180.7 million in dividends during the quarter. A $0.52-per-share dividend was declared for payment after quarter-end; dividends declared per share were $0.52 versus $0.45 in the comparable quarter.
Material developments, outlook and risks
Cintas has agreed to acquire UniFirst in a transaction valued at approximately $5.5 billion. UniFirst shareholders are to receive $155.00 in cash and 0.7720 Cintas shares per share, subject to the merger agreement. Cintas incurred $15.7 million of transaction expenses this quarter, including $14.4 million in operating expenses and $1.3 million in interest expense. The transaction had not closed as of the filing. Both companies certified substantial compliance with the FTC’s Second Request on October 2, 2026, and agreed not to close before December 11, 2026 unless the FTC earlier confirms its investigation is closed. Management expects closing before the end of calendar 2026, subject to required approvals and other customary conditions.
Management said operating cash flows and available credit should provide sufficient liquidity for at least the next 12 months and the foreseeable future. The filing does not provide quantified full-year revenue or earnings guidance. Risks include regulatory delay or failure to close the UniFirst transaction, integration challenges, transaction costs, potential share dilution and management distraction; also cited are economic and labor-cost pressures, tariffs and supply constraints, competition, cybersecurity, litigation, and foreign-exchange exposure. Ordinary-course legal matters were not expected by management to have a material adverse effect. Disclosure controls were assessed as effective, with no material change in internal control over financial reporting reported.
Key facts for investors to verify
- Progress and timing of FTC review, remaining closing conditions, final transaction consideration and expected financing needs for the UniFirst acquisition.
- Whether strong organic growth and margin improvement persist, particularly after accounting for the extra workday and acquisition contribution.
- Repurchase activity after quarter-end: Cintas reported $494.0 million of purchases through October 7, 2026, and completion of its July 2024 buyback program; confirm remaining authorization under the separate October 2025 program.
- How the approximately $1.0 billion of debt due within one year will be repaid or refinanced, and the effect of financing the UniFirst cash consideration on leverage and liquidity.
- Whether the higher effective tax rate and working-capital movements persist in subsequent quarters.