CINTAS CORP (CTAS) Q4 2025 Earnings Summary

Executive Summary

Q4 FY2025 revenue was $2.67B (+8.0% YoY; +9.6% same-workday) and diluted EPS was $1.09 (+9% YoY); operating margin was 22.4% and total gross margin 49.7% .
Results beat Wall Street consensus: revenue $2.6677B vs $2.6268B* and EPS $1.09 vs $1.0713*; organic growth was 9.0% with segment strength led by First Aid (+18.5%) and solid Uniform Rental (+7.2%) .
FY2026 guidance introduced: revenue $11.00–$11.15B and EPS $4.71–$4.85, implying operating margin >23% at the midpoint; tax rate 20% and interest, net ~$98M .
Capital returns remained robust: FY2025 dividends $611.6M (+15.2% YoY) and buybacks $679.3M; post-quarter dividend raised 15.4% to $0.45 per share .
Management flagged one-off Q4 tailwinds (training spike in First Aid and a strong Uniform Direct close) and reiterated pricing normalization to historical levels, while emphasizing mitigation levers against tariff/macro risks (dual sourcing, amortized material costs, SmartTruck efficiencies) .

Record-level profitability: gross margin expanded to 49.7% (+50 bps YoY) and operating margin to 22.4% in Q4; FY2025 operating margin hit an all-time high at 22.8% .
Strong organic growth across segments: Q4 organic revenue growth 9.0%; Uniform Rental +7.2%, First Aid +18.5%, All Other (incl. Fire/Uniform Direct) +11.1% .
Management execution and tech leverage: “We achieved strong organic revenue growth and set all-time highs in gross margin and operating margin” — Todd M. Schneider, CEO .

Pricing normalization: price increases returned to historical levels (roughly 0–2%), constraining top-line uplift vs prior inflationary periods .
One-off boosts in Q4: First Aid training spike and a bumpy Uniform Direct year (with a strong Q4 close) suggest growth normalization into FY2026 .
FX and macro uncertainty: FX headwinds noted in H2 FY2025; management highlighted tariff and interest rate uncertainty; Canadian FX specifically flagged in Q3 .

Metric	Q4 2024	Q2 2025	Q3 2025	Q4 2025
Revenue ($USD Billions)	$2.47	$2.56	$2.61	$2.67
Total Gross Margin %	49.2%	49.8%	50.6%	49.7%
Operating Margin %	22.2%	23.1%	23.4%	22.4%
Net Income ($USD Millions)	$414.3	$448.5	$463.5	$448.3
Diluted EPS ($USD)	$1.00	$1.09	$1.13	$1.09

Segment breakdown (Q4 FY2025 vs Q4 FY2024):

Segment	Revenue ($USD Millions) Q4 2024	Revenue ($USD Millions) Q4 2025	Operating Income ($USD Millions) Q4 2024	Operating Income ($USD Millions) Q4 2025
Uniform Rental & Facility Services	$1,911.2	$2,030.7	$432.954	$465.109
First Aid & Safety Services	$277.638	$324.397	$63.325	$76.684
All Other	$282.107	$312.575	$51.315	$55.659

KPIs (Q4 FY2025):

Metric	Period	Previous Guidance	Current Guidance	Change
Total Revenue ($B)	FY2025	$10.255–$10.320	$10.280–$10.305	Narrowed (low raised, high lowered)
Organic Revenue Growth %	FY2025	7.0–8.1	7.4–7.7	Raised low end; high end maintained
Diluted EPS ($)	FY2025	$4.28–$4.34	$4.36–$4.40	Raised
Effective Tax Rate %	FY2025	20.2	20.2	Maintained
Interest, net ($M)	FY2025	~101	~100	Lowered
Total Revenue ($B)	FY2026	N/A	$11.00–$11.15	New
Diluted EPS ($)	FY2026	N/A	$4.71–$4.85	New
Effective Tax Rate %	FY2026	N/A	20.0	New
Interest, net ($M)	FY2026	N/A	~98	New
Quarterly Dividend ($/sh)	Post-Q4	$0.39 (paid in Dec/March)	$0.45 (payable Sep 15, 2025)	Raised 15.4%

Topic	Q2 FY2025 (Dec 19)	Q3 FY2025 (Mar 26)	Q4 FY2025 (Jul 17)	Trend
AI/Tech investments (SAP, SmartTruck, myCintas)	Emphasized SAP leverage; SmartTruck efficiency; myCintas portal benefits	SAP rollout to Fire; continued tech investments	Ongoing tech-enabled efficiencies; SmartTruck adoption; auto-sortation	Expanding execution
Supply chain resilience	Sourcing gains, garment sharing; DC benefits	Dual sourcing; amortization smooths cost recognition	Diversified sourcing; inventory build; process improvements	Resilient/improving
Tariffs/macro	Monitoring proposed tariffs; positioned to pivot	Too early to tell; dual sources; amortization buffers	Tariff costs contemplated; dynamic environment; mitigation levers	Manageable risk
First Aid performance	+12.3% organic; margin mix favorable	Double-digit growth; recurring products strength	+18.5% organic; training spike one-off; recurring products demand	Strong; normalizing
Uniform Direct Sale	-9.2%; strategic cross-sell role	Bumpy; strategic customers	+9% Q4 close; not expected to persist	Volatile
Vertical strategy (HC, gov’t, education, hospitality)	Focused verticals performing well	Above-average growth in verticals	HC privacy curtains and scrub dispensing scaling; patents	Scaling solutions
Regulatory/legal	Prior-year class action settlement affected comps	No new issues; cadence manageable	No notable items	De-risking
FX/Regional	—	Canadian FX called out as unusual H2 headwind	FX backdrop acknowledged; constant FX in FY2026 guide	Minor headwind

“Our fourth quarter and full year results underscore the enduring strength of the Cintas value proposition. We achieved strong organic revenue growth and set all-time highs in gross margin and operating margin” — Todd M. Schneider, CEO .
“We generated $1.6B of free cash flow... invested $408.9M in capex, $232.9M in acquisitions, returned over $1B via dividends and buybacks” — Scott A. Garula, CFO .
“Retention rates are right at our all-time highs... gross margin improvement reflects supply chain progress, garment sharing, auto sortation, and SmartTruck routing efficiency” — Jim Rozakis, COO .

Pricing has normalized to historical levels (roughly 0–2%): “Our pricing strategy is back at historical levels” with growth driven by volume and cross-sell .
Tariff risk management: diversified dual sourcing, amortized rental material costs, inventory positioning and process improvements (garment sharing, auto sortation, SmartTruck) .
Incremental margins: target range 25–35% maintained; FY2026 guide implies margin expansion with incrementals “in the high 20s” despite SAP investment in Fire .
First Aid momentum: recurring products (AED rentals, eyewash, WaterBreak) drove leverage; Q4 training spike viewed as discrete .
M&A pipeline: active across route-based businesses in North America; focus on quality tuck-ins bringing customers, partners, capacity, and synergies .

Metric	Q4 2025 Consensus	Q4 2025 Actual
Revenue ($USD Billions)	$2.6268* (12 est.)	$2.6677
Diluted EPS ($USD)	$1.0713* (14 est.)	$1.09

Values retrieved from S&P Global.

Beat vs consensus on revenue and EPS; organic growth 9% with broad-based segment strength; sets constructive tone into FY2026 .
Margin resilience supported by structural efficiencies (SmartTruck, auto-sortation, garment sharing) and diversified sourcing; FY2026 midpoint implies >23% operating margin .
Expect First Aid growth to normalize as training one-offs fade; recurring product mix supports sustained double-digit trajectory .
Pricing tailwind has normalized; growth relies more on unit volumes, cross-sell within focused verticals, and tuck-in M&A .
Tariff/macro/FX risks appear manageable given amortized materials and dual sourcing; inventory positioning provides time to adjust .
Capital returns remain a lever: dividend raised 15.4% post-quarter to $0.45; FY2025 buybacks $679.3M support per-share growth .
Near term: shares may respond to beat and confident FY2026 guide; medium term: watch operational cadence in Fire SAP rollout and normalization of one-off growth drivers .