Cintas Corporation

Q4 + Full-Year performance (strong top-line + margin): - Q4 revenue: $2.91B, +8.9% YoY; organic +8.4%. - Profitability: Gross margin 51% (flat QoQ; ~+130 bps YoY). Operating income margin 23.2%, $673M (+12.7% YoY). - EPS: Diluted EPS $1.26 (+15.6% YoY); Adjusted EPS $1.29 (+18.3% YoY). - Full-year 2026: Revenue ~$11.26B (+8.9% YoY); organic +8.3%; Gross margin 50.7% (+70 bps YoY); Operating margin 23.1% (23.3% adjusted)—all-time high; Adjusted EPS $4.94 (+12.3% YoY).

Fiscal 2027 outlook (guidance provided; implies continued momentum): - Revenue: $12.1B to $12.25B, +7.4% to +8.7% total growth. - Adjusted diluted EPS: $5.36 to $5.50 (+8.5% to +11.3% growth). - Assumptions: 1 more work day than 2026 (~+40 bps to growth), no additional acquisitions assumed, constant FX, net interest expense ~ $105M, effective tax rate ~20.2%. - Energy/macro uncertainty acknowledged but expected to be manageable within the margin framework.

Operating efficiency + incremental margin expectations (investor focus): - Management emphasized incremental margin expectations of roughly ~30% to 32% (guided), aligning with their historical performance range (25%–35%). - Implied operating margin expansion: at the low end ~+10 bps, up to ~+60 bps at the high end of guidance. - Margin drivers: revenue leverage, route density/capacity utilization, supply chain execution, garment sharing tech (rental), production operational excellence, and SmartTruck service leverage.