Cintas (CTAS) Q3 2026 earnings summary

Executive summary

• Achieved record third quarter revenue of $2.84 billion, up 8.9% year-over-year, with organic growth of 8.2%.

• All-time high gross margins in each of the three route-based businesses, with consolidated gross margin at 51%, up 40 basis points year-over-year.

• Operating income grew 8.2% to $659.9 million; adjusted for a prior-year one-time gain, growth was 11%.

• Diluted EPS increased 9.7% to $1.24; adjusted EPS growth was 12.7%.

• Announced agreement to acquire UniFirst, expected to close in the second half of calendar 2026, with anticipated value creation.

Financial highlights

• Net income for the quarter was $502.5 million, up from $463.5 million year-over-year, with net income margin at 17.7%.

• Gross margin for Q3 reached $1.45 billion, up 9.8% year-over-year.

• Operating income for Q3 was $659.9 million, up 8.2% year-over-year; operating margin was 23.2%.

• Free cash flow for the nine months was $1.27 billion, up from $1.23 billion a year ago.

• Returned $1.45 billion to shareholders via dividends and buybacks in the first nine months of fiscal 2026.

Outlook and guidance

• Fiscal 2026 revenue guidance raised to $11.21–$11.24 billion, representing 8.4%–8.7% growth.

• Adjusted diluted EPS guidance increased to $4.86–$4.90, up 10.5%–11.4%.

• Guidance assumes constant FX, no future acquisitions, and a 20% effective tax rate.

• Fiscal 2026 net interest expense expected at $101 million, up from $95.5 million in 2025 due to refinancing and higher variable rates.

• Transaction costs from the UniFirst deal expected to impact EPS by $0.03–$0.04 in fiscal 2026.