Cintas Corp (NASDAQ:CTAS) Q2 2026 Earnings: Record Revenue and Margin Despite Slight Top-Line Miss

Cintas Corporation (NASDAQ:CTAS) reported financial results for its second quarter of fiscal 2026, delivering a performance that largely met the high expectations set for the uniform and business services giant. The company posted record revenue and achieved an all-time high operating margin, yet its top-line figure came in just shy of Wall Street's consensus forecast, a detail that appears to be influencing early market sentiment.

Quarterly Performance Versus Estimates

For the quarter ended November 30, 2025, Cintas reported revenue of $2.80 billion, representing a solid 9.3% increase over the prior year. Organic growth, which strips out the impact of acquisitions and currency fluctuations, was a robust 8.6%. However, this result fell slightly short of the analyst consensus estimate of approximately $2.82 billion.

On the bottom line, the company demonstrated strong execution. Diluted earnings per share (EPS) came in at $1.21, an 11% increase from the $1.09 reported in the same quarter last year. This figure was very close to, but just below, the analyst estimate of $1.22.

The key financial highlights from the quarter include:

• Revenue: $2.80 billion (Estimate: ~$2.82 billion)
• Diluted EPS: $1.21 (Estimate: $1.22)
• Gross Margin: 50.4%, a 60 basis point improvement year-over-year.
• Operating Income: Increased 10.9% to $655.7 million, with the margin expanding to 23.4%.
• Net Income: Rose 10.4% to $495.3 million.

Market Reaction and Price Action

Following the earnings release, the stock's pre-market trading indicates a positive reaction, with shares up approximately 3.1%. This suggests investors are focusing on the company's strong profitability metrics, raised guidance, and consistent execution rather than the minor revenue miss. The positive momentum builds on a steady uptrend, with the stock also showing gains over the past week, two weeks, and month. The market appears to be rewarding the company's ability to expand margins and generate robust cash flow in what remains a stable end-market.

Raised Full-Year Guidance

A significant component of the earnings announcement was management's decision to raise its financial outlook for the remainder of fiscal 2026. This updated guidance provides a forward-looking benchmark against current analyst projections.

• Cintas raised its full-year revenue guidance to a range of $11.15 billion to $11.22 billion, up from a prior range of $11.06 billion to $11.18 billion.
• The company also raised its diluted EPS guidance to a range of $4.81 to $4.88, compared to the previous range of $4.74 to $4.86.

Notably, this new revenue guidance range has a midpoint of approximately $11.185 billion, which sits comfortably above the current analyst consensus estimate of $11.374 billion for fiscal 2026 sales. The EPS guidance midpoint of $4.845 is slightly above the consensus EPS estimate of $4.83. The company's outlook assumes a constant currency rate and does not include the impact of future share buybacks.

Capital Return and Segment Performance

Cintas continued its disciplined capital allocation strategy, returning significant cash to shareholders. During the second quarter and through mid-December, the company repurchased $622.5 million of its own stock and paid $180.7 million in dividends. In total, $1.24 billion has been returned to shareholders in the first half of the fiscal year.

The company's growth was broad-based across its segments:

• The core Uniform Rental and Facility Services segment revenue grew 8.3% to $2.16 billion.
• The First Aid and Safety Services and All Other segments (reported together as "Other") saw revenue increase 12.8% to $644.6 million.

Looking Ahead

For the upcoming third quarter, investors should note that Cintas benefited from a one-time $15 million gain on the sale of land in the prior-year period. This non-recurring item will create a headwind for year-over-year comparisons in Q3 fiscal 2026. Analysts are currently estimating Q3 revenue of approximately $2.87 billion and EPS of $1.25.

CEO Todd Schneider attributed the strong results to "disciplined execution of our strategy" and "the exceptional commitment of our employee-partners," expressing confidence in the company's position for sustainable growth.

For a detailed look at historical earnings, future estimates, and analyst projections for Cintas, you can review the data here.

Disclaimer: This article is for informational purposes only and does not constitute investment advice, nor does it recommend buying or selling any securities. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.