Cintas Corp. R

Strong Q1 performance (revenue, EPS, margins) - Total revenue grew 10.9% to $3.01B (first time Cintas hit $3B+ in a quarter). - Organic growth: 8.9% (adjusted for acquisitions/FX/workdays). - Diluted EPS: $1.36 (+13.3% YoY); adjusted EPS: $1.39 (+15.8%) after excluding UniFirst transaction-related expenses. - Gross margin: 51.5% (all-time high); operating margin 23.6% (all-time high) vs 22.7% last year. - Operating income $711.9M (+15.2% YoY); adjusted operating income up 17.6% excluding UniFirst costs.

Full-year outlook raised (growth + profitability expectations) - Revenue guidance raised to $12.15B–$12.27B (from $12.10B–$12.25B), implying ~7.9%–8.9% growth. - Adjusted diluted EPS guidance raised to $5.45–$5.54 (from $5.36–$5.50), implying ~10.3%–12.1% growth. - Management expects double-digit EPS growth throughout the year and incremental margins ~32%–34% (improved vs 30%–32% previously cited).

Workday/comp dynamics are a key “good vs. headwind” driver - Guidance assumptions incorporate workdays: FY27 has one more workday than FY26. - Q1 had an extra workday (tailwind); Q2 is flat YoY workdays; Q3 has one less workday (headwind); Q4 has one more workday (tailwind). - They explicitly flagged quarter-to-quarter variability from workday comps: - Operating margin impact of extra workday in Q1: ~+50 bps (offset by UniFirst transaction expense ~ -50 bps). - Incremental margin workday impact highlighted as meaningful (they cited +400 bps in Q1), with reversal/headwinds later.