Cintas Accelerated Profit Growth as Margins Held at Record
Gross margin held at a record 51.0% as year-over-year expansion widened.
Cintas Corporation (CTAS), the uniform and workplace-services provider, accelerated fiscal fourth-quarter profit growth as revenue rose 8.9% and operating income increased 12.7%.
Revenue reached $2.91 billion after advancing throughout fiscal 2026. Organic growth quickened to 8.4% from 8.2% in the third quarter, extending a rebound from 7.8% in the first quarter.
Net income rose 14.0% to $511.0 million, while diluted earnings grew 15.6%, accelerating from each of the previous three quarters.
Gross margin expanded 130 basis points from a year earlier, compared with a 40-basis-point increase in the third quarter. Operating margin held at 23.2% even after the company recorded UniFirst transaction costs.
First Aid and Safety remained the fastest-growing disclosed business, with revenue rising 13.5% to $368.1 million. Its operating income jumped 28.6%, outpacing profit growth in Uniform Rental and Facility Services and All Other.
Full-year revenue rose 8.9% to $11.26 billion, finishing above the high end of Cintas's prior guidance. Adjusted diluted earnings of $4.94 a share also exceeded the company's previous ceiling.
For fiscal 2027, Cintas expects revenue of $12.10 billion to $12.25 billion, representing reported growth of 7.4% to 8.7%. Adjusted earnings guidance of $5.36 to $5.50 a share implies growth of 8.5% to 11.3%.
The proposed $5.5 billion acquisition of UniFirst received shareholder approval in June, though the companies also received a second request from the Federal Trade Commission. Cintas expects the transaction to close in the second half of calendar 2026.