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Some businesses are so deeply embedded in daily operations that customers rarely bother to leave, and four companies have quietly built their dividends on exactly that kind of inertia. The question is whether sticky revenue alone is enough to keep…

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Customers rarely switch from a payroll provider, a trash hauler, a credit analytics subscription or a weekly uniform service once it is up and running. That repeat-by-default revenue is the shared engine behind Paychex (NASDAQ:PAYX | PAYX Price Prediction), Republic Services (NYSE:RSG), Moody’s (NYSE:MCO) and Cintas (NASDAQ:CTAS), and it is what keeps a dividend funded when the economy cools (the same idea behind the dividend ladder we mapped out in a free income guide here). Republic just announced a dividend increase for the 23rd consecutive year, a clean shorthand for what this kind of revenue can support. Three of these four carry modest yields, so the case rests on coverage, cash flow and payout growth.

Paychex: Payroll Switching Friction Backs the Group’s Biggest Yield Paychex runs payroll, HR and benefits administration for small and midsize businesses, and it operates a professional employer organization (PEO) that co-employs a client’s workers. Payroll repeats every pay period, and moving it means migrating tax filings and employee records, which gives this revenue real switching friction. Management calls the PEO “the best retention solution that we have,” and PEO and insurance revenue grew 12% to $367.6 million last quarter.

At $101.37, Paychex yields 4.47%, the highest in this group. The quarterly payout is $1.19, an annualized forward rate of $4.76 per share.

Dividend safety: Its payout has the weakest backing of the four. Trailing dividends of $4.54 per share sit against diluted trailing EPS of $5.04, so most earnings go straight to shareholders. Cash flow is stronger: fiscal 2026 operating cash flow was $2.5567 billion against capex of $234.9 million and dividends of $1.6 billion. The company carries about $4.6 billion of debt versus roughly $1 billion in cash and corporate investments. Recent raises took the quarterly payout from $0.98 to $1.08 to $1.19, though the dividend held at $0.62 from 2019 into early 2021, so the recent raise pattern matters more than any long unbroken streak.

Bull case: Margins are expanding. GAAP operating margin reached 38.0% versus 35.2% a year earlier, and adjusted EPS of $1.34 beat the $1.32 estimate. Management guides fiscal 2027 adjusted EPS growth of 7% to 9%, and CEO John Gibson said “we believe Paychex has never been better positioned.” After an 18.83% slide over the past month, the stock sells for roughly 18 times forward earnings, which is why the yield looks so much higher than its peers.

Risk: The client base is small businesses, which feel employment slowdowns first. Growth is already cooling: The Wall Street Journal flagged slowing sales growth, and management guided second-quarter revenue growth of about 4%.

Republic Services: Essential Contracts and 23 Straight Years of Raises Republic collects, transfers and landfills non-hazardous solid waste and runs recycling and environmental solutions operations. Its revenue repeats through municipal franchises and commercial service agreements, and customer retention held at more than 94%. Trash pickup is about as non-discretionary as a service gets, which makes this the stickiest revenue in the group.

At $212.12, the stock yields 1.18%. The board just lifted the quarterly dividend to $0.67 from $0.625, an annualized forward rate of $2.68.

Dividend safety: Trailing dividends of $2.50 per share compare with trailing EPS of $7.06, a comfortable margin. Free cash flow reached $2.433 billion last year, while dividends and buybacks together returned $1.6 billion. Management raised its adjusted free cash flow guidance to $2.54 billion to $2.575 billion. Debt stands at $14.2 billion, with leverage near 2.6 times and $2.8 billion of liquidity. Dividend records show the quarterly payment climbing from $0.405 in 2020 to today’s $0.67.

Bull case: Pricing power. Core price on total revenue rose 5.3% last quarter, and CEO Jon Vander Ark said “We’re pricing ahead of our cost structure.” A beta of 0.4 and a 390.99% ten-year price gain show how steadily that compounding has worked for patient holders.

Risk: Volume is shrinking. Organic volume fell 1.6% on total revenue, with residential down 4.3% on contract losses and large container down 2.2% on soft construction activity. Pricing can offset that for a while, but prolonged volume declines would slow dividend growth.

Moody’s: Analytics Subscriptions Anchor the Payout While Issuance Swings Moody’s sells credit ratings through Moody’s Investors Service and data, software and risk tools through Moody’s Analytics. The analytics side is the true subscription engine: recurring revenue represented 99% of Moody’s Analytics revenue, annualized recurring revenue (ARR) reached $3.7 billion, and retention was 95%. Ratings carry a recurring layer too, with Investors Service recurring revenue up 6% to $369 million, but most rating fees depend on new bond deals.

At $468.80, the yield is 0.84%, the lowest here. The quarterly dividend rose to $1.03 from $0.94, for an annualized forward rate of $4.12.

Dividend safety: This is the largest margin in the bundle. Trailing dividends of $4.03 per share sit against trailing EPS of $15.56, and full-year adjusted EPS guidance is $16.50 to $17.00. Free cash flow hit $688 million in the second quarter, up 47%, with full-year guidance of $2.7 billion to $2.9 billion. Moody’s plans to return more than 130% of free cash flow this year, helped by proceeds from recent portfolio actions, so buybacks take in the swings while the dividend stays small. Management says it intends to preserve balance-sheet flexibility while funding growth. The per-payment dividend has risen every year in the record since 2010, climbing from $0.105 to $1.03.

Bull case: Adjusted operating margin expanded to 55.3%, and adjusted EPS of $4.68 exceeded the $4.25 estimate. CEO Rob Fauber said customers are “increasingly turning to Moody’s intelligence, our ratings, analytics, and insights to make consequential decisions with greater confidence.” The stock sells for roughly 24 times forward earnings.

Risk: Ratings revenue depends on issuance, and issuance can freeze. Ratings produced $1.260 billion of second-quarter revenue versus $925 million from analytics, so the more cyclical half is currently the larger one. A credit-market seizure or widening spreads would cut transaction revenue quickly, even though the dividend itself is well covered.

Cintas: Weekly Route Service and a 43-Year Dividend Growth Record Cintas rents and cleans uniforms and supplies mats, restroom products, first aid kits and fire protection services, delivered by route trucks on a recurring schedule. That revenue is more routine than contractual: a business can bring the work back in-house, but few bother once the truck shows up every week. CEO Todd Schneider said over two-thirds of new business comes from companies that previously handled these tasks themselves, and management reported a “slight improvement in retention.”

At $199.91, Cintas yields 0.95%. The quarterly dividend rose 15.6% to $0.52 from $0.45, an annualized forward rate of $2.08.

Dividend safety: First-quarter free cash flow of $464.8 million, up 48.72%, compared with an aggregate dividend payment of $208.8 million. Fiscal 2026 free cash flow was $1.881 billion. Trailing dividends of $1.87 per share sit against trailing EPS of $5.08, leaving room for both raises and buybacks, which reached $544.7 million in the quarter. Schneider said “We are pleased to have increased our dividend every year since going public 43 years ago,” and recent records back the pattern, with the quarterly payment moving from $0.39 to $0.45 to $0.52.

Bull case: Gross margin hit a record 51.5%, operating margin reached an all-time high of 23.6%, and organic growth was 8.9%. Management raised fiscal 2027 adjusted EPS guidance to $5.45 to $5.54. Over ten years, the stock has gained 685.7%.

Risk: The pending UniFirst acquisition faces an FTC second request, and Cintas booked $14.4 million in non-recurring transaction expenses last quarter. A delayed or conditioned approval would add cost and distraction, and integrating a large competitor raises execution risk.

Who This Recurring Revenue Group Suits These four suit income investors who prize a dividend that keeps rising over a big starting check. Republic and Paychex bring the strongest switching friction, Moody’s carries the largest earnings margin, and Cintas pairs a double-digit raise with surging free cash flow. Paychex supplies the current income at 4.47%, while the other three compound payouts funded by revenue that shows up again every month. For a retiree building an income stream meant to survive a downturn, repeat-by-default revenue is the foundation that counts.

Contact [email protected] for any questions or corrections.

CINCINNATI--(BUSINESS WIRE)--Cintas Corporation (Nasdaq: CTAS) today reported results for its fiscal 2027 first quarter ended August 31, 2026. Revenue for the first quarter of fiscal 2027 was $3.01 billion compared to $2.72 billion in last year’s first quarter, an increase of 10.9%. The organic revenue growth rate for the first quarter of fiscal 2027, which adjusts for the impacts of acquisitions, foreign currency exchange rate fluctuations and workday differences, was 8.9%.

Gross margin for the first quarter of fiscal 2027 was $1.55 billion compared to $1.37 billion in last year’s first quarter, an increase of 13.7%. Gross margin as a percent of revenue was 51.5% for the first quarter of fiscal 2027, compared to 50.3% in last year's first quarter, an increase of 120 basis points.

Operating income for the first quarter of fiscal 2027 increased 15.2% to $711.9 million compared to $617.9 million in last year's first quarter. Operating income as a percent of revenue was 23.6% in the first quarter of fiscal 2027 compared to 22.7% in last year's first quarter. Operating income in the first quarter of fiscal 2027 included $14.4 million of transaction expenses related to the proposed UniFirst Corporation (UniFirst) acquisition.

Net income was $551.7 million for the first quarter of fiscal 2027 compared to $491.1 million in last year's first quarter, an increase of 12.3%. The first quarter of fiscal 2027 effective tax rate was 20.0% compared to 17.6% in last year's first quarter. The tax rates in both quarters were impacted by certain discrete items, primarily the tax accounting impact for stock-based compensation. First quarter of fiscal 2027 diluted earnings per share (EPS) was $1.36 compared to $1.20 in last year's first quarter, an increase of 13.3%. Excluding the UniFirst non-recurring transaction expenses, which had a $0.03 impact on diluted EPS, adjusted diluted EPS was $1.39 for the first quarter, an increase of 15.8% over the prior year.

Reflecting our commitment to return capital to our shareholders, on September 15, 2026, Cintas paid an aggregate quarterly dividend of $208.8 million to shareholders. During the first quarter of fiscal 2027 and through September 22, 2026, Cintas purchased shares of Cintas common stock under our share buyback programs, for a total purchase price of $544.7 million.

Todd M. Schneider, Cintas’ Chief Executive Officer, stated “We are pleased with our start to fiscal 2027. Our employee-partners delivered another strong quarter, producing record revenue and record operating margin. Organic revenue growth of 8.9% and a record gross margin reflect the value we continue to provide our customers and the impact of our ongoing investments in technology, capacity and talent. These results demonstrate the strength of our business model and our ability to help customers operate their facilities in a clean, safe and professional manner."

Mr. Schneider continued, "We continue to engage with the U.S. Federal Trade Commission as it reviews our transaction with UniFirst. We remain excited about the substantial value we expect to create for shareholders and customers through the transaction, and we look forward to welcoming the UniFirst Team Partners to Cintas once the transaction is complete, which we expect to occur prior to the end of calendar 2026."

Mr. Schneider concluded, "As we look forward to what lies ahead for fiscal 2027, we are raising our full fiscal year financial guidance. We are raising our annual revenue expectations from a range of $12.10 billion to $12.25 billion to a range of $12.15 billion to $12.27 billion, and we are raising our adjusted diluted EPS expectations from a range of $5.36 to $5.50 to a range of $5.45 to $5.54. The adjusted diluted EPS guide does not include the impact of non-recurring transaction expenses related to the UniFirst acquisition."

Initial Guidance

Fiscal 2027

Updated Guidance

Fiscal 2027

(In millions)

Fiscal

2026

Low end

of Range

Growth

vs. 2026

High end

of Range

Growth

vs. 2026

Low end

of Range

Growth

vs. 2026

High end

of Range

Growth

vs. 2026

A

B

E

H

I

L

M

P

Q

Total revenue

$ 11,264.8

$ 12,100.0

7.4%

$ 12,250.0

8.7%

$ 12,150.0

7.9%

$ 12,270.0

8.9%

E=(B-A)/A

I=(H-A)/A

M=(L-A)/A

Q=(P-A)/A

C

D

D

D

D

Workdays in the period

260

261

261

261

261

A

F

G

J

K

N

O

R

S

Workday adjusted revenue growth

$ 11,264.8

$ 12,053.6

7.0%

$ 12,203.1

8.3%

$ 12,103.4

7.4%

$ 12,223.0

8.5%

F=(B/D)*C

G=(F-A)/A

J=(H/D)*C

K=(J-A)/A

N=(L/D)*C

O=(N-A)/A

R=(P/D)*C

S=(R-A)/A

Please note the following regarding the annual revenue guidance:

Fiscal year 2027 has one more workday than fiscal year 2026. Guidance excludes expected impacts from the proposed UniFirst acquisition. Guidance does not assume any future acquisitions. Guidance assumes a constant foreign currency exchange rate. Initial Guidance

Fiscal 2027

Updated Guidance

Fiscal 2027

Fiscal

2026

Low end

of Range

Growth

vs. 2026

High end

of Range

Growth

vs. 2026

Low end

of Range

Growth

vs. 2026

High end

of Range

Growth

vs. 2026

Diluted EPS

$

4.91

$

—

$

—

$

—

$

—

UniFirst transaction related expenses

0.03

—

—

—

—

Adjusted diluted EPS (1)

$

4.94

$

5.36

8.5

%

$

5.50

11.3

%

$

5.45

10.3

%

$

5.54

12.1

%

Please note the following regarding the adjusted diluted EPS guidance:

Fiscal year 2027 interest, net is expected to be approximately $103.0 million compared to $101.2 million in fiscal year 2026. The increase is primarily a result of the amortization of bridge loan financing expenses related to the UniFirst acquisition. Expected interest, net does not factor in any debt activity or issuance of commercial paper related to future share buybacks or acquisition activity, including the funding necessary for the proposed acquisition of UniFirst. Fiscal year 2027 effective tax rate is expected to be 20.4% compared to 20.2% in fiscal year 2026. Our adjusted diluted EPS guidance does not include the impact of future share buybacks or significant economic disruptions or downturn. Adjusted diluted EPS guidance excludes non-recurring transaction costs related to the UniFirst acquisition, which cannot be reasonably estimated at this time. Cintas

Cintas Corporation helps more than one million businesses of all types and sizes get Ready™ to open their doors with confidence every day by providing products and services that help keep their customers’ facilities and employees clean, safe and looking their best. With offerings including uniforms, mats, mops, towels, restroom supplies, workplace water services, first aid and safety products, eye-wash stations, safety training, fire extinguishers, sprinkler systems and alarm service, Cintas helps customers get Ready for the Workday®. Headquartered in Cincinnati, Cintas is a publicly held Fortune 500 company traded over the Nasdaq Global Select Market under the symbol CTAS and is a component of both the Standard & Poor’s 500 Index and Nasdaq-100 Index.

Cintas will host a live webcast to review the fiscal 2027 first quarter results today at 10:00 a.m., Eastern Time. The webcast will be available to the public on Cintas' website at www.Cintas.com. A replay of the webcast will be available approximately two hours after the completion of the live call and will remain available for two weeks.

CAUTION CONCERNING FORWARD-LOOKING STATEMENTS

This Press Release contains forward-looking statements, within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended, including statements regarding our future business plans and expectations, and including the company's fiscal 2027 full-year guidance which involve risks and uncertainties. The Private Securities Litigation Reform Act of 1995 provides a safe harbor from civil litigation for forward-looking statements. Forward-looking statements may be identified by words such as “estimates,” “anticipates,” “predicts,” “projects,” “plans,” “expects,” “intends,” “targets,” “forecasts,” “believes,” “seeks,” “could,” “should,” “may” and “will” or the negative versions thereof and similar words, terms and expressions and by the context in which they are used. Such statements are based upon current expectations of Cintas and speak only as of the date made. You should not place undue reliance on any forward-looking statement. We cannot guarantee that any forward-looking statement will be realized. Forward-looking statements in this release include, but are not limited to, statements about the completion and the benefits of the transaction between Cintas and UniFirst (the “Transaction”), including future financial and operating results, the combined company’s plans, objectives, expectations and intentions, and other statements that are not historical facts. These statements are subject to various risks, uncertainties, potentially inaccurate assumptions and other factors that could cause actual results to differ from those set forth in or implied by this Press Release.

The following Transaction-related factors, among others, could cause actual results to differ materially from those expressed in or implied by forward-looking statements: the occurrence of any event, change, or other circumstance that could give rise to the right of one or both of the parties to terminate the definitive merger agreement between Cintas and UniFirst; the outcome of any legal proceedings that may be instituted against Cintas or UniFirst; the possibility that the Transaction does not close when expected or at all because required regulatory, or other approvals and other conditions to closing are not received or satisfied on a timely basis or at all (and the risk that seeking or obtaining such approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the Transaction); the risk that the benefits from the Transaction may not be fully realized or may take longer to realize than expected, including as a result of changes in, or problems arising from, general economic and market conditions, interest and exchange rates, monetary policy, trade policy (including tariff levels), laws and regulations and their enforcement, and the degree of competition in the geographic and business areas in which Cintas and UniFirst operate; any failure to promptly and effectively integrate the businesses of Cintas and UniFirst; the possibility that the Transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events; reputational risk and potential adverse reactions of Cintas’ or UniFirst’s customers, employees or other business partners, including those resulting from the announcement, pendency or completion of the Transaction; the dilution caused by Cintas’ issuance of additional shares of its capital stock in connection with the Transaction; changes in the trading price of Cintas’ or UniFirst’s capital stock; and the diversion of management’s attention and time to the Transaction from ongoing business operations and opportunities.

Additional important factors relating to Cintas that could cause actual results to differ from those in forward-looking statements include, but are not limited to, the possibility of greater than anticipated operating costs including energy and fuel costs; lower sales volumes; loss of customers due to outsourcing trends; the performance and costs of integration of acquisitions; supply chain constraints and macroeconomic conditions, including inflationary pressures and higher interest rates; changes in global trade policies, tariffs, and other measures that could restrict international trade; fluctuations in costs of materials and labor, including increased medical costs; costs and possible effects of union organizing activities; failure to comply with government regulations concerning employment discrimination, employee pay and benefits and employee health and safety; the effect on operations of exchange rate fluctuations, and other political, economic and regulatory risks; uncertainties regarding any existing or newly-discovered expenses and liabilities related to environmental compliance and remediation; Cintas' ability to meet its aspirations relating to sustainability opportunities, improvements and efficiencies; the cost, results and ongoing assessment of internal controls over financial reporting; the effect of new accounting pronouncements; risks associated with cybersecurity threats, including disruptions caused by the inaccessibility of computer systems data and cybersecurity risk management; the initiation or outcome of litigation, investigations or other proceedings; higher assumed sourcing or distribution costs of products; the disruption of operations from catastrophic or extraordinary events including global health pandemics; the amount and timing of repurchases of Cintas' common stock, if any; changes in global tax and labor laws; the reactions of competitors in terms of price and service and the other risks and contingencies detailed in Cintas’ most recent Annual Report on Form 10-K and its other filings with the Securities and Exchange Commission.

Cintas undertakes no obligation to publicly release any revisions to any forward-looking statements or to otherwise update any forward-looking statements whether as a result of new information or to reflect events, circumstances or any other unanticipated developments arising after the date on which such statements are made, except otherwise as required by law. A further list and description of risks, uncertainties and other matters can be found in our Annual Report on Form 10-K for the year ended May 31, 2026, and in our reports on Forms 10-Q and 8-K. The risks and uncertainties described herein are not the only ones we may face. Additional risks and uncertainties presently not known to us, or that we currently believe to be immaterial, may also harm our business.

Cintas Corporation

Consolidated Condensed Statements of Income

(Unaudited)

(In thousands except per share data)

  Three Months Ended

August 31, 2026

August 31, 2025

%

Change

Revenue:

Uniform rental and facility services

$

2,294,736

$

2,091,066

9.7%

Other

719,245

627,056

14.7%

Total revenue

3,013,981

2,718,122

10.9%

Costs and expenses:

Cost of uniform rental and facility services

1,128,884

1,052,553

7.3%

Cost of other

331,554

299,008

10.9%

Selling and administrative expenses

827,244

748,702

10.5%

UniFirst Corporation transaction expenses

14,412

—

100.0%

Operating income

711,887

617,859

15.2%

Interest income

(2,649

)

(2,209

)

19.9%

Interest expense

24,706

24,161

2.3%

Income before income taxes

689,830

595,907

15.8%

Income taxes

138,119

104,767

31.8%

Net income

$

551,711

$

491,140

12.3%

Basic earnings per share

$

1.37

$

1.21

13.2%

Diluted earnings per share

$

1.36

$

1.20

13.3%

Basic weighted average common shares outstanding

400,137

403,292

Diluted weighted average common shares outstanding

404,290

409,294

CINTAS CORPORATION SUPPLEMENTAL DATA

Gross Margin and Net Income Margin Results

  Three Months Ended

August 31, 2026

August 31, 2025

Uniform rental and facility services gross margin

50.8%

49.7%

Other gross margin

53.9%

52.3%

Total gross margin

51.5%

50.3%

Net income margin

18.3%

18.1%

Reconciliation of Non-GAAP Financial Measures

The press release contains non-GAAP financial measures within the meaning of the rules promulgated by the U.S. Securities and Exchange Commission. To supplement its consolidated condensed financial statements presented in accordance with U.S. generally accepted accounting principles (GAAP), the Company provides these additional non-GAAP financial measures of free cash flow and organic revenue growth. The Company believes that these non-GAAP financial measures are appropriate to enhance understanding of its past performance as well as prospects for future performance. A reconciliation of the difference between these non-GAAP financial measures with the most directly comparable financial measures calculated in accordance with GAAP are shown in the tables below.

Computation of Free Cash Flow

  Three Months Ended

(In thousands)

August 31, 2026

August 31, 2025

Net cash provided by operations

$

572,331

$

414,481

Capital expenditures

(107,532

)

(101,957

)

Free cash flow

$

464,799

$

312,524

Management uses free cash flow to assess the financial performance of the Company. Management believes that free cash flow is useful to investors because it relates the operating cash flow of the Company to the capital that is spent to continue, improve and grow business operations.

Computation of Organic Revenue Growth

  Three Months Ended

August 31, 2026

August 31, 2025

Growth

%

A

B

G

Revenue

$

3,013,981

$

2,718,122

10.9%

G=(A-B)/B

C

D

Workdays in the period

66

65

E

F

H

Workday adjusted revenue

$

2,968,315

$

2,718,122

9.2%

E=(A/C)*D

F=(B/D)*D

H=(E-F)/F

Acquisition and foreign currency exchange impact, net

(0.3)%

Organic revenue growth

8.9%

Management believes that organic revenue growth is valuable to investors because it reflects the revenue performance compared to a prior period with the same number of revenue generating days and excludes the impact from acquisitions and foreign currency exchange rate fluctuations.

SUPPLEMENTAL SEGMENT DATA

  (In thousands)

Uniform Rental

and Facility Services

First Aid

and Safety Services

All

Other

Corporate

Total

For the three months ended August 31, 2026

Revenue

$

2,294,736

$

388,517

$

330,728

$

—

$

3,013,981

Cost of sales

1,128,884

164,700

166,854

—

1,460,438

Gross margin

1,165,852

223,817

163,874

—

1,553,543

Selling and administrative expenses

590,764

124,275

112,205

—

827,244

UniFirst Corporation transaction expenses

—

—

—

14,412

14,412

Operating income (loss)

$

575,088

$

99,542

$

51,669

$

(14,412

)

$

711,887

For the three months ended August 31, 2025

Revenue

$

2,091,066

$

334,657

$

292,399

$

—

$

2,718,122

Cost of sales

1,052,553

144,489

154,519

—

1,351,561

Gross margin

1,038,513

190,168

137,880

—

1,366,561

Selling and administrative expenses

538,576

109,841

100,285

—

748,702

Operating income

$

499,937

$

80,327

$

37,595

$

—

$

617,859

Cintas Corporation

Consolidated Condensed Balance Sheets

(In thousands)

  August 31,
2026

May 31,
2026

(Unaudited)

ASSETS

Current assets:

Cash and cash equivalents

$

243,599

$

289,018

Accounts receivable, net

1,587,573

1,555,190

Inventories, net

433,286

446,435

Uniforms and other rental items in service

1,309,995

1,276,174

Prepaid expenses and other current assets

357,292

286,225

Total current assets

3,931,745

3,853,042

Property and equipment, net

1,768,378

1,740,501

Investments

448,875

438,662

Goodwill

3,548,696

3,544,212

Service contracts, net

272,972

287,869

Operating lease right-of-use assets, net

274,590

271,088

Other assets, net

407,479

393,766

$

10,652,735

$

10,529,140

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current liabilities:

Accounts payable

$

506,502

$

461,157

Accrued compensation and related liabilities

159,159

237,042

Accrued liabilities

841,215

889,198

Income taxes, current

140,129

44,070

Operating lease liabilities, current

58,370

56,505

Debt due within one year

999,291

998,987

Total current liabilities

2,704,666

2,686,959

Long-term liabilities:

Debt due after one year

1,429,554

1,429,086

Deferred income taxes

548,906

537,919

Operating lease liabilities

224,159

221,379

Accrued liabilities

540,918

513,910

Total long-term liabilities

2,743,537

2,702,294

Shareholders’ equity:

Preferred stock, no par value:

100 shares authorized, none outstanding

—

—

Common stock, no par value, and paid-in capital:

1,700,000 shares authorized

FY 2027: 780,726 issued and 399,517 outstanding

FY 2026: 779,537 issued and 400,147 outstanding

2,931,963

2,851,129

Retained earnings

13,416,890

13,073,999

Treasury stock:

FY 2027: 381,209 shares

FY 2026: 379,390 shares

(11,235,046

)

(10,869,708

)

Accumulated other comprehensive income

90,725

84,467

Total shareholders’ equity

5,204,532

5,139,887

$

10,652,735

$

10,529,140

Cintas Corporation

Consolidated Condensed Statements of Cash Flows

(Unaudited)

(In thousands)

  Three Months Ended

August 31, 2026

August 31, 2025

Cash flows from operating activities:

Net income

$

551,711

$

491,140

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation

78,918

77,589

Amortization of intangible assets and capitalized contract costs

48,408

48,348

Stock-based compensation

31,047

30,348

Deferred income taxes

9,132

13,496

Change in current assets and liabilities, net of acquisitions of businesses:

Accounts receivable, net

(32,734

)

(3,635

)

Inventories, net

12,817

(2,398

)

Uniforms and other rental items in service

(33,880

)

(34,760

)

Prepaid expenses and other current assets and capitalized contract costs

(108,897

)

(62,382

)

Accounts payable

46,486

(22,501

)

Accrued compensation and related liabilities

(77,801

)

(94,275

)

Accrued liabilities and other

(49,338

)

(101,114

)

Income taxes, current

96,462

74,625

Net cash provided by operating activities

572,331

414,481

Cash flows from investing activities:

Capital expenditures

(107,532

)

(101,957

)

Purchases of investments

(7,179

)

(6,538

)

Acquisitions of businesses, net of cash acquired

(3,916

)

(7,602

)

Other, net

1,260

(130

)

Net cash used in investing activities

(117,367

)

(116,227

)

Cash flows from financing activities:

Proceeds from exercise of stock-based compensation awards

159

2,669

Dividends paid

(180,700

)

(157,766

)

Repurchase of common stock

(315,710

)

(266,097

)

Other, net

(3,917

)

(2,807

)

Net cash used in financing activities

(500,168

)

(424,001

)

Effect of exchange rate changes on cash and cash equivalents

(215

)

(83

)

Net decrease in cash and cash equivalents

(45,419

)

(125,830

)

Cash and cash equivalents at beginning of period

289,018

263,973

Cash and cash equivalents at end of period

$

243,599

$

138,143

Bank of America Corp DE acquired a new position in Cintas Corporation (NASDAQ:CTAS – Free Report) during the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund acquired 1,370,595 shares of the business services provider’s stock, valued at approximately $233,111,000. Bank of America Corp DE owned about 0.34% of Cintas at the end of the most recent quarter.

Other institutional investors and hedge funds have also recently modified their holdings of the company. Caisse de depot et placement du Quebec bought a new position in shares of Cintas during the 2nd quarter worth $21,295,000. Man Group plc purchased a new stake in Cintas during the second quarter valued at about $119,083,000. Invst LLC bought a new position in Cintas during the second quarter worth about $592,000. First Bancorp Inc ME bought a new position in Cintas during the second quarter worth about $39,000. Finally, Jupiter Topco LLC purchased a new position in shares of Cintas in the second quarter worth about $6,661,000. 63.46% of the stock is owned by institutional investors.

Cintas Stock Up 0.3% CTAS stock opened at $199.46 on Thursday. The company’s 50 day moving average is $201.14 and its 200 day moving average is $185.72. The stock has a market cap of $79.82 billion, a price-to-earnings ratio of 53.33, a price-to-earnings-growth ratio of 3.21 and a beta of 0.91. The company has a current ratio of 1.43, a quick ratio of 1.27 and a debt-to-equity ratio of 0.28. Cintas Corporation has a 1-year low of $161.16 and a 1-year high of $219.16.

Cintas (NASDAQ:CTAS – Get Free Report) last announced its earnings results on Wednesday, July 15th. The business services provider reported $1.29 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.24 by $0.05. Cintas had a net margin of 17.75% and a return on equity of 42.05%. The business had revenue of $2.91 billion during the quarter, compared to analyst estimates of $2.87 billion. During the same period in the previous year, the business posted $1.09 earnings per share. Cintas’s revenue for the quarter was up 8.9% on a year-over-year basis. Cintas has set its FY 2027 guidance at 5.360-5.500 EPS. Sell-side analysts predict that Cintas Corporation will post 5.49 EPS for the current fiscal year. Cintas Increases Dividend The business also recently announced a quarterly dividend, which was paid on Tuesday, September 15th. Investors of record on Friday, August 14th were given a $0.52 dividend. This represents a $2.08 annualized dividend and a yield of 1.0%. This is a boost from Cintas’s previous quarterly dividend of $0.45. The ex-dividend date was Friday, August 14th. Cintas’s dividend payout ratio (DPR) is presently 55.61%.

Analyst Upgrades and Downgrades Several research firms have recently issued reports on CTAS. Royal Bank Of Canada reissued a “sector perform” rating and issued a $206.00 price target on shares of Cintas in a research report on Thursday, July 16th. Truist Financial reduced their price objective on shares of Cintas from $255.00 to $225.00 and set a “buy” rating for the company in a research note on Monday, June 15th. UBS Group reissued a “buy” rating and set a $230.00 target price (up from $228.00) on shares of Cintas in a report on Thursday, July 16th. The Goldman Sachs Group restated a “buy” rating and set a $231.00 target price on shares of Cintas in a research report on Wednesday, July 15th. Finally, Sanford C. Bernstein reaffirmed a “market perform” rating on shares of Cintas in a report on Thursday, September 10th. One research analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, five have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $212.31.

Get Our Latest Stock Report on CTAS

About Cintas (Free Report)

Cintas Corporation is a provider of workplace products and services for businesses across North America. The company helps organizations manage employee appearance, workplace cleanliness, safety, and compliance through a range of recurring service programs.

Its offerings include uniform rental and workwear, branded apparel, entrance mats, restroom supplies, and facility cleaning services. Cintas also provides first-aid and safety products, training, and fire protection services, including inspection and maintenance programs for fire extinguishers, sprinkler systems, alarms, and related equipment.

Headquartered in Mason, Ohio, Cintas traces its roots to a family-operated industrial laundry business established by Richard T.

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Some companies keep writing bigger dividend checks even when their end markets are shrinking, and the trait that separates them from the rest has nothing to do with yield. Five names across insurance, automation, and home improvement have quietly built…

Dividend growth beats dividend yield when the cycle turns against you. The five names below span home improvement, insurance, uniform services, and industrial automation, and each has kept raising its payout while its end markets wobbled. The shared hook is durability: Cintas just reported its 55th year of the last 57 that Cintas grew both its top and bottom lines, and that kind of operating consistency is what actually funds a rising dividend when the market is not cooperating.

A quick housekeeping note before the names. Home Depot and Lowe’s are direct competitors in the same end market, so owning both concentrates you in home improvement and housing turnover rather than diversifying you. Size positions accordingly.

Home Depot: A Housing-Cycle Compounder Still Writing Bigger Checks Home Depot (NYSE:HD | HD Price Prediction) currently pays a quarterly dividend of $2.33 per share, or $9.32 annualized. The trailing yield sits at 1.44% against a share price of $310.48. That is modest, but the check keeps growing: the quarterly went from $2.25 in 2024 to $2.30 in 2025, then to $2.33 in 2026.

On safety, FY2025 free cash flow was $12.646B against operating cash flow of $16.325B, and net debt/EBITDA sits at 2.65x with interest coverage of 8.66x. FY2025 diluted EPS came in at $14.23, giving the payout comfortable coverage. Home Depot returned approximately $2.3 billion in dividends to shareholders during the quarter and still funded $880 million in capex.

Bull case for income investors: management said “the headline here for us this quarter is that our teams took share in a difficult environment”, and Pro/SRS/GMS expansion adds durable, sticky revenue that funds continued raises. The stock is -23.12% over one year, which lifts the entry yield.

Risk: “Housing turnover, just as one point in the economy that we watch, has been at historical lows”, and FCF fell 22.54% YoY in FY2025, tightening the near-term coverage cushion.

Chubb: An All-Weather Insurer With a Fortress Balance Sheet Chubb (NYSE:CB) raised its quarterly dividend from $0.97 to $1.02 per share earlier this year, an annualized $4.08. The trailing yield is 1.15%. The dividend record shows a higher quarterly rate in each successive year from 2019 through 2026.

Coverage is not the concern here. Q2 2026 P&C underwriting income was more than $1.9 billion, up almost 19% year over year, with a consolidated combined ratio of 83.8. Adjusted net investment income hit a record $1.88 billion, and adjusted operating cash flow was $3.5 billion. Book value reached $75 billion, or $195.45 per share. Chubb returned $1.4 billion of capital to shareholders during the quarter, split between buybacks and the dividend.

Bull case: Evan Greenberg called Chubb “an all-weather firm” and expressed confidence in “double digit” EPS and tangible book value growth. A reinvestment rate of 5.5% above the portfolio book yield of 5.1% is a structural tailwind for future dividend capacity. Shares are up 23.44% over one year.

Risk: property and financial-lines pricing is softening quickly. North America commercial property pricing was down about 6%, and Greenberg warned that “Pricing in numerous areas of casualty are failing to keep pace with loss costs, which are hardly benign.”

Cintas: Recurring Revenue That Funds Double-Digit Raises Cintas (NASDAQ:CTAS) just moved its quarterly dividend from $0.45 to $0.52 per share, for an annualized $2.08. Yield is only 0.9%, so this is dividend growth, not income. The prior raise, from $0.39 to $0.45, took effect in 2025.

Safety is exceptional. FY2026 free cash flow was $1.881B (+7.07%) on revenue of $11.265B (+8.94% YoY). Full-year gross margin was 50.7%, up 70 basis points from the prior year, and adjusted diluted EPS was $4.94, up 12.3%. Cintas returned $1.7 billion in dividends and buybacks for the year. Management said “Our annual dividend remains an important component of shareholder return, and our share buyback program continues to be executed opportunistically.”

Bull case: recurring uniform-rental and facility-services revenue behaves like a subscription. FY2027 guidance calls for revenue of $12.10B–$12.25B and adjusted diluted EPS of $5.36–$5.50. Management’s framing: “We grow in multiples of employment, we grow in multiples of GDP.”

Risk: the pending UniFirst deal received an FTC second request, and the shares trade at a premium forward multiple of 37x, leaving little room for execution slips.

Lowe’s: A Buyback-Heavy Balance Sheet Still Raising the Payout Lowe’s (NYSE:LOW) raised its quarterly dividend from $1.20 to $1.25 per share at the July ex-date, for an annualized $5. Yield stands at 2.37%, the highest in this group. CFO Brandon Sink referenced “our status as a dividend aristocrat” on the Q2 call.

Coverage read: Q2 FY26 free cash flow was $3.1 billion, dividends paid were $673 million, and return on invested capital was 25.5%. FY2026 guidance calls for adjusted diluted EPS of about $12.25 on sales near $92 billion. The FCF yield reads at 6.87%, which is what funds continued raises.

Bull case: comparable sales were positive in nine of 13 merchandise divisions, appliances put up a seventh consecutive quarter of positive comps, and management believes “there is $20 and $50 billion of pent-up deferred project demand in home improvement.”

Risk: shareholders’ equity is -$7.437B from aggressive buybacks, adjusted debt/EBITDA sits at 3.0 times versus a target of 2.75 times, and shares are down 24.67% over one year on the DIY slowdown.

Emerson Electric: Automation Cash Flow Feeding a Long Dividend Record Emerson (NYSE:EMR) currently pays a quarterly dividend of $0.555 per share, or $2.22 annualized, for a yield of 1.44%. The most recent raise took the quarterly from 0.5275 to 0.555, and the payment history shows steady annual increases going back through 2010 in the supplied record.

Coverage is deep. Q3 FY26 free cash flow was $1.3 billion, up 36%, with a margin of 27.1%. Full-year FCF guidance is approximately $3.6 billion, and the FY2026 capital return plan is $2.2 billion, split $1.2 billion in dividends and $1 billion of share repurchases. Adjusted segment EBITDA margin expanded 140 basis points to 28.5%.

Bull case: underlying orders grew 7%, growth verticals rose 27%, and the project funnel expanded to $12.4 billion, up 8% year over year. Power, semiconductor, and software exposure gives the dividend a secular tailwind.

Risk: Europe sales declined 1% and China was down 3%, so international cyclicality remains the swing factor.

Bottom Line for Income-Focused Investors These are dividend growers, and that is the point. Home Depot and Lowe’s fund raises through housing-cycle scale, Chubb through underwriting profitability and record investment income, Cintas through recurring-revenue compounding, and Emerson through an automation and power backlog that keeps cash flow expanding. Pair Chubb, Cintas, and Emerson if you want diversification away from housing turnover, since owning both HD and LOW doubles that single macro exposure. (If you want to go one step further on payout longevity, we ranked ten companies with 50+ years of consecutive raises by valuation in a free report here: 10 Dividend Kings to Buy Now and Hold Forever.)

Contact [email protected] for any questions or corrections.

BlackRock Inc. acquired a new stake in shares of Cintas Corporation (NASDAQ:CTAS – Free Report) during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm acquired 26,578,230 shares of the business services provider’s stock, valued at approximately $4,520,425,000. BlackRock Inc. owned approximately 6.64% of Cintas as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also modified their holdings of the stock. Nemes Rush Group LLC purchased a new stake in Cintas during the 4th quarter valued at about $25,000. First United Bank & Trust purchased a new position in Cintas in the 1st quarter worth approximately $25,000. Whipplewood Advisors LLC boosted its holdings in shares of Cintas by 1,712.5% during the 1st quarter. Whipplewood Advisors LLC now owns 145 shares of the business services provider’s stock worth $25,000 after purchasing an additional 137 shares during the last quarter. Swiss RE Ltd. acquired a new position in shares of Cintas during the 4th quarter worth approximately $25,000. Finally, Camelot Portfolios LLC purchased a new stake in shares of Cintas in the fourth quarter valued at approximately $26,000. Hedge funds and other institutional investors own 63.46% of the company’s stock.

Cintas Stock Performance NASDAQ:CTAS opened at $199.45 on Wednesday. The company has a current ratio of 1.43, a quick ratio of 1.27 and a debt-to-equity ratio of 0.28. The company has a market capitalization of $79.81 billion, a P/E ratio of 53.33, a price-to-earnings-growth ratio of 3.22 and a beta of 0.91. The firm has a 50-day moving average price of $189.72 and a two-hundred day moving average price of $184.77. Cintas Corporation has a twelve month low of $161.16 and a twelve month high of $219.87.

Cintas (NASDAQ:CTAS – Get Free Report) last posted its quarterly earnings results on Wednesday, July 15th. The business services provider reported $1.29 EPS for the quarter, beating the consensus estimate of $1.24 by $0.05. Cintas had a return on equity of 42.05% and a net margin of 17.75%.The company had revenue of $2.91 billion during the quarter, compared to analysts’ expectations of $2.87 billion. During the same quarter in the previous year, the business earned $1.09 EPS. The firm’s revenue was up 8.9% on a year-over-year basis. Cintas has set its FY 2027 guidance at 5.360-5.500 EPS. As a group, research analysts expect that Cintas Corporation will post 5.49 earnings per share for the current fiscal year. Cintas Increases Dividend The company also recently announced a quarterly dividend, which will be paid on Tuesday, September 15th. Investors of record on Friday, August 14th will be paid a $0.52 dividend. The ex-dividend date is Friday, August 14th. This is a positive change from Cintas’s previous quarterly dividend of $0.45. This represents a $2.08 dividend on an annualized basis and a dividend yield of 1.0%. Cintas’s dividend payout ratio is currently 55.61%.

Wall Street Analysts Forecast Growth Several brokerages have recently commented on CTAS. Robert W. Baird upped their price target on Cintas from $200.00 to $214.00 and gave the company an “outperform” rating in a research note on Thursday, July 16th. Argus upgraded shares of Cintas to a “strong-buy” rating in a research report on Friday, July 17th. UBS Group reissued a “buy” rating and issued a $230.00 price target (up from $228.00) on shares of Cintas in a research note on Thursday, July 16th. Wells Fargo & Company reissued an “overweight” rating and issued a $250.00 target price (up from $245.00) on shares of Cintas in a research report on Thursday, July 16th. Finally, Truist Financial decreased their price target on Cintas from $255.00 to $225.00 and set a “buy” rating on the stock in a research note on Monday, June 15th. One equities research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, six have issued a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $212.31.

Check Out Our Latest Stock Analysis on Cintas

Cintas Profile (Free Report)

Cintas Corporation (NASDAQ: CTAS) is a provider of business services and products focused on workplace appearance, safety and facility maintenance. The company is best known for its uniform rental and corporate apparel programs, which include rental, leasing and direct-purchase options, laundering and garment repair. Cintas markets its services to a wide range of end-users, including manufacturing, food service, healthcare, hospitality, retail and government customers.

Beyond uniforms, Cintas offers a suite of facility services and products designed to help organizations maintain clean, safe and compliant workplaces.

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Todd M. Schneider, the CEO of Cintas Corporation (CTAS -0.33%), disposed of 35,599 shares of common stock on August 10, according to an SEC Form 4 filing.

Transaction summaryMetricValueShares sold35,599Transaction value$7.2 millionPost-transaction shares (directly held)691,407Post-transaction shares (indirectly held)3,466Transaction value based on SEC Form 4 weighted average sale price ($202.71); post-transaction value based on the August 10 market close ($202.71).

Key questionsWhat was the motivation behind this transaction?
This was a non-discretionary sell-to-cover event in which the company withheld shares to satisfy tax withholding requirements triggered by the vesting of restricted stock awards previously granted to the executive.How does this impact the insider's long-term alignment with the company?
Despite the disposition of 35,599 shares, Schneider remains a major individual shareholder with a combined direct and indirect stake of 694,873 shares, valued at $140.9 million as of the August 10 market close.What is the broader context of the insider's ownership stake?
Following this transaction, Schneider's total beneficial ownership represents a close to 0.2% stake in the company, which has a total market capitalization of $82.1 billion.How has the stock performed leading up to this vesting event?
As of the transaction date, the company's stock had delivered a one-year return of (10%), with the shares priced at $202.71 at the time of the tax withholding.Company OverviewMetricValueShare Price (as of market close 2026-08-11)$205.28Market Capitalization$82.1 billionRevenue (TTM)$11.3 billionNet Income (TTM)$2.0 billionCompany SnapshotCintas Corporation provides professional uniform rental and maintenance services, first aid and safety solutions, and facility services, generating revenue primarily through recurring service contracts across the United States, Canada, and Latin America.The company operates a subscription-based business model where customers pay recurring fees for uniform rental, cleaning, and maintenance services, supplemented by sales of first aid and safety products and facility services.Cintas serves a diverse customer base, including manufacturing facilities, healthcare institutions, hospitality businesses, and other commercial enterprises requiring professional workwear and safety solutions.Cintas Corporation is a leading specialty business services provider with a market capitalization of $82.1 billion and TTM revenues of $11.3 billion, demonstrating substantial scale and market presence. The company's diversified service portfolio and recurring revenue model provide stable cash flows and competitive advantages through high customer switching costs and operational efficiency. With 48,100 employees and established operations across North America and Latin America, Cintas maintains a strong market position in the professional services sector.

What this transaction means for investorsSchneider still holds nearly 695,000 shares worth around $141 million, so this move barely moves the needle in terms of his overall stake. Plus, the filing makes clear it's purely for tax withholdings.

More importantly, the company just closed one of its stronger years. Cintas grew fiscal fourth-quarter revenue 8.9% to $2.91 billion and reached a record 51% gross margin, capping a year of double-digit earnings growth that few in its unglamorous business of uniform rental and facility services can match. On the earnings call, Schneider said Cintas stays focused on "what it can control," but the development worth tracking sits ahead of it, since the company has agreed to buy rival UniFirst, a deal now working through an FTC second request that could reshape the industry if it clears.

Cintas is already the dominant player in uniform services, and folding in a major competitor would extend that lead, which is precisely why regulators are taking a closer look before letting it through. Shares have jumped over 20% from lows earlier in 2026, but they remain down over the past year, signaling investors might still be a little apprehensive even if a bit more bullish.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool recommends Cintas. The Motley Fool has a disclosure policy.

A month has gone by since the last earnings report for Cintas (CTAS - Free Report) . Shares have lost about 2.7% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Cintas due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

Cintas' Q4 Earnings & Revenues Surpass Estimates, Increase Y/YCintas reported fourth-quarter fiscal 2026 earnings of $1.29 per share, which beat the Zacks Consensus Estimate of $1.24 by 4%. The bottom line increased 18.3% from the year-ago quarter figure. Revenues of $2.91 billion surpassed the consensus estimate of $2.88 billion by 1% and rose 8.9% year over year.

The top line was driven by 8.4% organic revenue growth, reflecting solid demand across its route-based businesses. Record gross margins also stood out as a key highlight in the quarter.

Cintas’ Segmental ResultsThe company has two reportable segments, Uniform Rental and Facility Services and First Aid and Safety Services. Other businesses, like Uniform Direct Sale and Fire Protection Services, are included in All Other. Quarterly sales data are briefly discussed below.

Cintas’ Uniform Rental and Facility Services segment generated revenues of $2.20 billion, up 8.2% year over year from $2.03 billion. Segment operating income rose to $529.5 million from $465.1 million, reflecting steady demand and operating leverage.

The First Aid and Safety Services segment delivered revenues of $368.1 million, increasing 13.5% from $324.4 million in the prior-year quarter. Operating income climbed to $98.6 million from $76.7 million, supported by strong demand for safety and compliance solutions.

Revenues from the All Other segment totaled $339.4 million, up 8.6% from $312.6 million a year ago. Segment operating income increased to $59 million from $55.7 million.

Margin ProfileCintas’ cost of sales (comprising costs related to uniform rental and facility services and others) increased 6.2% year over year to $1.42 billion. Cintas reported gross profit of $1.48 billion, up 11.6% year over year. Gross margin improved 130 basis points to 51%, marking a record high.

Selling and administrative expenses totaled $793.2 million, up 8.9% from the year-ago quarter figure. Despite this increase, operating income rose 12.7% to $673 million.

Operating margin was 23.2%, up from 22.4% in the prior-year quarter, helped by higher sales. Net income increased 14% to $511 million, with a tax rate of 21.2%.

Cintas’ Balance Sheet & Cash FlowExiting fiscal 2026, Cintas had cash and cash equivalents of $289 million compared with $264 million at the end of fiscal 2025. Long-term debt was about $1.43 billion compared with $2.42 billion at the end of fiscal 2025.

In fiscal 2026, it generated net cash of $2.28 billion from operating activities, up 5.1% from the year-ago period. Capital expenditures in the same period totaled $395.1 million, down 3.4% year over year.

The company repurchased shares worth $952.1 million compared with $934.8 million in the previous fiscal year. Dividend payments totaled $701.5 million, up 14.7% year over year.

Fiscal 2027 OutlookFor fiscal 2027, the company expects revenues to be in the range of $12.10-$12.25 billion. Adjusted earnings per share are projected in the range of $5.36-$5.50. The guidance excludes any expected impacts associated with the pending UniFirst acquisition.

Management expects net interest expense of approximately $105 million and an effective tax rate of 20.2% for the year. The outlook assumes stable foreign exchange rates and excludes contributions from acquisitions.

How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in estimates review.

VGM ScoresAt this time, Cintas has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. Following the exact same course, the stock has a grade of F on the value side, putting it in the lowest quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Cintas has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.

Cintas Corp. (NASDAQ:CTAS) on Wednesday reported better-than-expected fiscal fourth-quarter 2026 results.

For fiscal 2027, Cintas forecast revenue of $12.10 billion to $12.25 billion, above the analyst consensus estimate of $12.08 billion. The outlook implies annual growth of 7.4% to 8.7%.

The company expects adjusted diluted EPS of $5.36 to $5.50, compared with analysts’ estimate of $5.43. That represents projected growth of 8.5% to 11.3%.

Cintas shares rose 2.9% to $197.89 in pre-market trading.

These analysts made changes to their price targets on Cintas following earnings announcement.

B of A Securities analyst Curtis Nagle upgraded the stock from Neutral to Buy and raised the price target from $200 to $230. Baird analyst Andrew Wittmann maintained the stock with an Outperform rating and boosted the price target from $200 to $214. Considering buying CTAS stock? Here’s what analysts think:

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Key Takeaways Cintas is expected to report fiscal Q4 revenues of $2.88 billion, up 7.8% year over year. CTAS may benefit from customer retention, AED Rentals demand and gains from recent acquisitions. Cintas faces margin pressure from higher SG&A costs and potential foreign exchange headwinds. Cintas Corporation (CTAS - Free Report) is scheduled to release fourth-quarter fiscal 2026 (ended May 2026) results on July 15, before market open.

The Zacks Consensus Estimate for CTAS’ fiscal fourth-quarter revenues is pegged at $2.88 billion, indicating growth of 7.8% from the prior-year quarter’s figure. The consensus mark for earnings is pinned at $1.24 per share, which has been stable in the past 60 days. The figure indicates growth of 13.8% from the year-ago quarter's figure.

The company has a stellar earnings surprise history, having outperformed the consensus estimate in each of the preceding four quarters, the average beat being 1.3%. In the last reported quarter, its earnings of $1.24 per share beat the consensus estimate of $1.23 by 0.8%.

Let’s see how things have shaped up before Cintas’ fiscal fourth-quarter earnings release.

Factors to Note Ahead of CTAS’ ResultsStrong customer retention and penetration of additional products and services into existing customers are expected to have driven the Uniform Rental and Facility Services segment’s performance in the fiscal fourth quarter. The Zacks Consensus Estimate for the segment’s revenues is pegged at $2.17 billion, indicating a 7% jump from the year-ago reported number.

Solid demand for the company’s AED Rentals is likely to have supported the performance of the First Aid and Safety Services segment. Also, strong customer retention levels and an improved sales mix are likely to have boded well for the segment. The consensus mark for the segment’s revenues is pegged at $358 million, which implies a 10.5% increase from the year-ago reported figure.

Also, synergistic gains from the acquisitions of Paris Uniform Services (March 2024) and SITEX (February 2024) are expected to have boosted Cintas’ top line in the to-be-reported quarter. While the Paris Uniform Services buyout has strengthened CTAS’ market presence in Pennsylvania, New York, Maryland and West Virginia, the SITEX acquisition has enhanced its footprint in the U.S. central Midwest region.

However, the escalating selling, general and administrative (SG&A) expenses pose a threat to CTAS’ bottom line. Increase in employee-partner related expensesare expected to have pushed up the SG&A expenses, which are likely to have impacted the company’s margins in the fiscal fourth quarter.

Given Cintas’ extensive geographic presence, its operations are subject to global political risks and foreign exchange headwinds. A stronger U.S. dollar is likely to have hurt CTAS’ overseas business in the quarter.

Earnings WhispersOur proven model predicts an earnings beat for CTAS this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here, as elaborated below.

Earnings ESP: CTAS has an Earnings ESP of +0.58% as the Zacks Consensus Estimate is pegged at $1.25 per share, higher than the Most Accurate Estimate of $1.24. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank: CTAS currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Stocks to ConsiderHere are some other companies, which according to our model, have the right combination of elements to beat on earnings in this reporting cycle.

Ingersoll Rand Inc. (IR - Free Report) has an Earnings ESP of +0.61% and a Zacks Rank of 3 at present. The company is slated to release second-quarter 2026 results on July 30.

Ingersoll Rand’s earnings surpassed the Zacks Consensus Estimate in two of the trailing four quarters while matching the mark in two, the average surprise being 2.4%.

Crane Company (CR - Free Report) has an Earnings ESP of +4.73% and a Zacks Rank of 2 at present. The company is scheduled to release second-quarter 2026 results on July 28.

Crane’s earnings surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 11.3%.

Illinois Tool Works Inc. (ITW - Free Report) has an Earnings ESP of +0.31% and a Zacks Rank of 3 at present. The company is slated to release second-quarter 2026 results on July 28.

Illinois Tool’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 2.8%.