Cintas Corp. has recently released its latest 10-Q report. The company provides corporate identity uniforms and related garments in the U.S., Canada and Latin America, along with facility services, first aid and safety products, and fire protection services. Its operations are organized into Uniform Rental and Facility Services, First Aid and Safety Services, and All Other, with sales coming through its distribution network, local routes and direct representatives.
In Item 2, management said Cintas’ strategy centers on expanding revenue by selling more products and services to existing customers, adding new customers, and pursuing acquisitions when appropriate. The company said it serves more than one million businesses and continues to use frequent service visits and a national sales force to deepen customer relationships and broaden its reach.
For the three months ended Aug. 31, 2026, total revenue rose 10.9% to $3.014 billion from $2.718 billion a year earlier. Organic revenue growth was 8.9%, with 0.4% from acquisitions, 1.7% from one additional workday and a 0.1% drag from foreign exchange.
Uniform Rental and Facility Services revenue increased 9.7% to $2.295 billion, with organic growth of 8.0%. Management attributed the gain to new business, added products and services to existing customers, price increases and customer retention. The segment’s cost rose 7.3% to $1.129 billion, but as a share of revenue it fell to 49.2% from 50.3%.
The First Aid and Safety Services segment posted revenue of $388.5 million, up 16.1% from $334.7 million, with organic growth of 14.2%. Revenue there was lifted by new business, penetration of existing accounts, price increases and retention. Gross margin in the segment improved to 57.6% from 56.8%.
Revenue in the company’s All Other category, which includes Fire Protection Services and Uniform Direct Sales, rose to $330.7 million from $292.4 million. Combined with First Aid and Safety Services, other revenue totaled $719.2 million, up 14.7%.
Cost of other increased 10.9% to $329.8 million, while its share of revenue improved to 46.1% from 47.7%. Selling and administrative expenses climbed 10.5% to $826.0 million, but stayed nearly flat as a percentage of revenue at 27.4%.
Operating income increased to $711.9 million from $617.9 million, and operating margin widened to 23.6% from 22.7%. The company said the improvement reflected more efficient use of in-service inventory, sourcing initiatives, efficiency gains and better leverage of fixed costs.
Net interest expense was $22.1 million, compared with $22.0 million a year earlier. The effective tax rate rose to 20.0% from 17.6%. Net income increased 12.3% to $551.7 million, and diluted earnings per share rose 13.3% to $1.36.
Cintas also disclosed transaction expenses tied to its planned acquisition of UniFirst. It recorded $15.7 million of transaction costs in the quarter, including $14.4 million in operating income and $1.3 million in interest expense. The proposed deal is valued at about $5.5 billion, with UniFirst shareholders set to receive $155.00 in cash and 0.7720 shares of Cintas stock for each UniFirst share, if completed. The market has reacted to these announcements by moving the company's shares 0.29% to a price of $195.96. If you want to know more, read the company's complete 10-Q report here.
