Cintas surpassed $3 billion in quarterly revenue for the first time in the first quarter of fiscal 2027 and raised its full-year guidance, driven by volume growth. Gross margin reached a record high, operating margin remained strong, and EPS increased year on year.
Cintas Corporation reported first-quarter fiscal 2027 revenue of $3.01 billion (approximately ¥480 billion), up approximately 10.9% year on year. Organic growth was reported at 8.9%, with management explaining that growth was driven primarily by volumes rather than simple price increases.
Gross margin reached a record high of 51.5%, while operating margin reached 23.6%. Diluted EPS was $1.36, and adjusted diluted EPS was $1.39, with both increasing from the same period a year earlier.
At the segment level, Uniform Rental and Facility Services and First Aid and Safety Services both achieved organic growth, and margin improvement was also reported. In particular, the margin at First Aid and Safety Services expanded from the previous quarter.
Full-year revenue guidance was raised to $12.15 billion to $12.27 billion (approximately ¥1.9 trillion), implying total growth of 7.9% to 8.9%, with adjusted diluted EPS of $5.45 to $5.54. The company also explained that differences in the number of business days would affect full-year margins and growth rates.
The company reaffirmed its policy of not passing through energy costs and absorbing fluctuations in fuel costs through efficiency measures. In capital allocation, it is continuing capital expenditures and increasing its dividend while also continuing share repurchases.
During the earnings call, the company explained that cross-selling, while still at an early stage, is spreading across all business lines. Regarding the acquisition of UniFirst, it avoided committing to a specific timing but indicated that its outlook assumes completion by the end of 2026.