Sep 23, 2026 earnings call — Raised full-year guidance after strong quarter
Cintas raised fiscal 2027 revenue guidance to a range of $12.15 billion to $12.27 billion.
Revenue $3.0B (est $3.0B) · EPS $1.39 (est $1.35) · Next-quarter revenue outlook $12.2B–$12.3B
Key quotes
"We are succeeding in tapping into the massive total addressable market as we convert no-programmers to a managed solution."
"In addition, we continue to see margin expansion as a result of the investments we are making in technology."
"We remain optimistic that the deal will close by the end of calendar 2026."
Analyst Q&A 11
Drivers of raised revenue guide
Q (Renee Gagliardo · William Blair): Why was full-year revenue guidance raised? What are the main drivers?
A: Management said new business is the most important driver, especially converting “no-programmers,” which account for over 2/3 of new business. They also cited steady customer growth, volume growth, retention and cross-sell improvements as contributors.
"Converting over no-programmers has been a part of our history and part of our future." — Todd Schneider (CEO)
Customer demand, margins, workday impact
Q (Manav Patnaik · Barclays): How are customer conversations given macro uncertainty and UniFirst; and what about margins, incrementals, and workday effects?
A: Management said demand is solid across a broad customer base and outsourcing still resonates, especially in dynamic times. They raised incremental margin guidance to 32% to 34% and warned the extra workday in Q1 is a tailwind that will reverse in Q3, causing quarter-to-quarter variability.
"So the incrementals that we're guiding for would be now at 32% to 34%." — Todd Schneider (CEO)
Interest expense and SAP timing
Q (Andrew J. Wittmann · R.W. Baird): Why will net interest expense increase and how does UniFirst financing affect it? Also, status and timing of SAP rollout in Fire Protection and SG&A effects?
A: Management said the net interest guide for Q2–Q4 is unchanged; Q1 benefited from favorable cash and no commercial paper. Bridge loan fees of approximately $6 million over 18 months add to net interest expense and about $4 million will hit fiscal year '27. On SAP, Fire Protection is still in pilot and not live; rollout is expected this fiscal year and is not yet impacting results.
"SAP is still in pilot, and we are working diligently on that program, and we expect it to start rolling out at some point during this fiscal year." — James Rozakis (COO)
Vertical performance and fuel impact
Q (Keen Fai Tong · Goldman Sachs): How did performance vary by verticals? And how are higher fuel/energy costs affecting margins and actions taken?
A: Management said all chosen verticals are performing above company average, with no single standout or weakness. On fuel, they do not pass through fuel surcharges and manage fuel operationally; they expect energy to be a bit above Q1 for the year but will extract inefficiencies and have it in the guide.
"We manage it operationally, and we expect to get -- extract out inefficiencies in our business, and I think you're seeing it show up." — Todd Schneider (CEO)
Input cost inflation and management
Q (Joshua Chan · UBS): What are you seeing for other cost inflation (cotton etc.) and how are you managing it?
A: Management said they are not immune to inflation but rely on corporate culture and supply chain to manage input costs rather than automatically passing costs to customers. They use technology and other initiatives to extract inefficiencies and believe they are well positioned to handle inflationary pressures.
"Our supply chain has done a remarkable job in managing through the input costs that are important." — Todd Schneider (CEO)
First Aid growth and cross-sell
Q (Jasper Bibb · Truist): What's driving First Aid's strong growth and how is cross-sell penetration between First Aid and uniform customers?
A: Management said First Aid benefits from a clear value proposition around employee and customer wellness and strong sales productivity. New business, improving retention, and cross-sell all contributed; cross-sell momentum between rental and First Aid is strong and the team is executing well.
"New business, and we continue to see increased productivity levels on our new business team in our First Aid and Safety business, and we like the way that's performing." — James Rozakis (COO)
Incremental margin math and Fire margin drivers
Q (Jason Haas · Wells Fargo): Can you clarify the math behind the 32%–34% incrementals? And why did Fire Protection gross margin jump while growth moderated?
A: Management said the 32%–34% incremental margin is based on the mid to high end of the revenue range and to use those points when modeling. For Fire Protection, they still expect double-digit growth; the strong gross margin in the quarter reflected the extra workday and favorable mix, but margins can vary due to investments (technicians, new markets, bench) and revenue mix shifts.
"We expect this to be a double-digit growth business. Our trailing 12 months is above 10%." — James Rozakis (COO)
Cross-sell progress and sales cycle changes
Q (Seth Weber · BNP Paribas): Can you quantify current cross-sell penetration and its potential? Also, any change in sales cycles or customer pauses?
A: Management said cross-sell is in the early innings and an important future driver; they are encouraged but did not give penetration metrics. They have not seen any change in sales cycle length and described the customer base as stable.
"I'll call it, we're in the early innings of cross-sell." — Todd Schneider (CEO)
Energy level in guide and cross-sell product wins
Q (Curtis Nagle · BofA): Confirm energy level implied by guide and how many basis points change year-over-year; and which product lines show outsized cross-sell success?
A: Management said energy finished Q1 at 1.8% and the guide assumes energy slightly above Q4, so model around Q1/Q4 levels; they view fuel exposure as limited and can offset costs. On cross-sell, success is broad across product lines and driven by high-touch customer relationships rather than one product category.
"We have such a broad product offering that it's really one-off on exactly what products may resonate for a particular customer at a particular time." — James Rozakis (COO)
Labor market and UniFirst regulatory process
Q (Faiza Alwy · Deutsche Bank): Are you seeing tighter labor market signs and are you cooperating with the FTC on UniFirst information requests?
A: Management said employee partner retention is at record, attractive levels and they feel well positioned; they do not see the tighter conditions affecting them materially. On UniFirst, they declined to comment further on the transaction details but reiterated confidence in closing in the back half of calendar 2026.
"Our retention levels of our employee partners is really attractive at record levels." — Todd Schneider (CEO)
Pricing outlook and productivity examples
Q (Toni Kaplan · Morgan Stanley): If higher costs persist, will the industry command higher prices next year? And what productivity initiatives give most benefit?
A: Management said they cannot speak for the whole market and will not simply pass input costs to customers; they focus on culture, technology and many smaller productivity gains. Examples include routing improvements via SmartTruck, garment sharing, automation, supply chain advantages and leveraging top-line growth to boost capacity utilization.
"And as we look at trying to expand our margin and deliver strong financials, it always starts for us with strong top line growth." — James Rozakis (COO)