- Record Revenue & Margin Growth Total revenue surged 9.3% to $2.8B (organic growth 8.6%), with gross margin rising 60 bps to 50.4%.
- Upside Guidance Raised FY2026 revenue guidance to $11.15B–$11.22B (7.8%–8.5% growth) and EPS to $4.81–$4.88 (9.3%–10.9% growth).
- Strong Segment Performance First Aid & Safety Services led with 14.1% growth, followed by Fire Protection at 11.5%.
- Shareholder Returns $1.24B returned to shareholders (dividends + buybacks) in H1, including a $622.5M share repurchase (3rd largest quarter).
- Free Cash Flow Expansion Q2 free cash flow rose 23.8% to $425M, driven by operational efficiency and margin discipline.
Segment Performance
In terms of business segments, Uniform Rental Facility Services had an organic growth rate of 7.8%, First Aid and Safety Services had a growth rate of 14.1%, Fire Protection Services had a growth rate of 11.5%, and Uniform Direct sale had a growth rate of 2%. The First Aid business performed well, with a low double-digit growth outlook for the foreseeable future.
Guidance and Outlook
The company is raising its fiscal 2026 financial guidance, expecting revenue to be in the range of $11.15 billion to $11.22 billion, a total growth rate of 7.8% to 8.5%, and diluted EPS to be in the range of $4.81 to $4.88, a growth rate of 9.3% to 10.9%. The company's guidance assumes no new acquisitions and a constant foreign currency exchange rate.
Cash Flow and Shareholder Returns
The company's free cash flow for the second quarter was $425 million, an increase of 23.8% over the prior year. Cintas returned $1.24 billion in capital to shareholders in the form of dividends and share buybacks during the first six months of fiscal 2026. The company repurchased $622.5 million of its shares in Q2, the third largest share repurchase in a quarter.
Valuation
With a P/E Ratio of 39.76 and an EV/EBITDA of 27.83, the market is pricing in a certain level of growth for Cintas Corporation. The company's ROE of 41.07% and ROIC of 25.0% indicate a strong ability to generate returns on equity and invested capital. Analysts estimate next year's revenue growth at 8.6%, which is slightly higher than the company's current guidance.
Growth Drivers
Cintas' management highlighted its ability to grow in any environment, citing its diversified services and customer base. The company sees opportunities for growth through new business, cross-selling to existing customers, and acquisitions. The company's growth verticals, including healthcare, hospitality, state and local government, and education, are growing slightly faster than the aggregate of the company.
Tariff Mitigation and Technology Investments
The company is working to mitigate tariff costs through supplier optimization and efficiency extraction, rather than passing costs to customers. Cintas is also investing in technology, including AI, to drive efficiency and cost savings. The company sees benefits in material cost, production, and delivery costs.