As the corporate services sector continues to navigate a landscape of cautious optimism, Cintas Corporation ( CTAS )‘s recent earnings report highlights a critical shift in investor sentiment. Despite surpassing earnings and sales expectations, the company’s stock dipped.

Cintas ( CTAS ) shares are trading lower on Thursday after the company reported fourth-quarter earnings per share of $1.09, beating the analyst consensus estimate $1.07.

Quarterly sales of $2.667 billion (+8% year over year) outpaced the Street view of $2.626 billion.

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The fourth quarter of fiscal 2025 was negatively impacted by one fewer workday compared to the fourth quarter of fiscal 2024.

Gross profit increased to $1.33 billion compared to $1.22 billion in last year’s fourth quarter, an increase of 9.1%. 

Gross margin was 49.7% compared to 49.2% in last year’s fourth quarter, an increase of 50 basis points.

Operating income for the fourth quarter of fiscal 2025 rose 9.1% to $597.5 million, with a margin of 22.4% versus 22.2% in the prior-year quarter.

“As we enter fiscal 2026, we remain focused on delivering unmatched service to our customers, leveraging our distinctive culture and generating sustainable, long-term results for all our stakeholders,” said the company’s CEO Todd M. Schneider.

The company exited the quarter with cash and equivalents totaling $263.97 million and inventories valued at $447.408 million.

Outlook: Cintas ( CTAS ) expects fiscal 2026 GAAP EPS to range between $4.71 and $4.85, compared to the $4.84 consensus estimate.

The company projects revenue between $11.00 billion and $11.15 billion, compared to the $11.04 billion estimate.

CTAS Price Action: Cintas shares were up 0.45% at $214.98 at the time of publication Thursday, according to Benzinga Pro.

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