Cintas Corporation

Strong Q1 results; revenue broke $3B - Total revenue +10.9% YoY to $3.01B; organic growth +8.9% (adjusting for acquisitions/FX/workdays). - Diluted EPS $1.36 (+13.3% YoY); adjusted diluted EPS $1.39 (+15.8% YoY) excluding UniFirst transaction-related expenses. - Gross margin % 51.5% (all-time high); driven by Uniform Rental/FMS +110 bps to 50.8%, and First Aid/Safety +80 bps. - Surprising/positive: Operating margin at 23.6% (all-time high), supported by extra workday tailwind and cost execution.

Guidance raised for fiscal 2027 (growth + margin/incrementals) - Revenue outlook raised to $12.15B–$12.27B (from $12.10B–$12.25B): +7.9% to +8.9% growth. - Adjusted diluted EPS outlook raised to $5.45–$5.54 (from $5.36–$5.50): ~10.3% to 12.1% growth. - Incremental margins expected 32%–34% (improved vs 30%–32% previously referenced), implying continued operating leverage. - Workday impact is a key planning assumption: Q2 flat vs prior year, Q3 has one less workday (headwind), Q4 has one more workday.

Business momentum and “what’s driving growth” - Core strategy: outsourcing value in image, safety, cleanliness, compliance; strong execution by employee partners. - Organic growth by segment: - Uniform Rental & Facility Services: +8% - First Aid & Safety: +14.2% - Fire Protection: +9.2% - Uniform Direct Sale: +9.6% - Primary growth driver emphasized: converting “no-programmers” to managed services; over 2/3 of new business comes from this conversion. - Also improving: retention (slight improvement) and cross-sell (slight improvement); management noted growth is mostly volume-led (pricing broadly consistent).