Cintas (CTAS) Q2 2026 earnings summary

Executive summary

• Achieved record quarterly revenue of $2.8 billion, up 9.3% year-over-year, with organic growth of 8.6%.

• Net income rose 10.4% to $495.3 million, and diluted EPS increased 11% to $1.21.

• All business segments contributed to growth, with operating margin reaching an all-time high of 23.4%.

• Growth was driven by new business, increased product penetration, price increases, and strong customer retention.

• Retention rates reached all-time highs, supported by superior service, expanded offerings, and a strong company culture.

Financial highlights

• Operating income increased 10.9% to $655.7 million, with margin at 23.4%.

• Gross margin improved to 50.4%, up 60 basis points year-over-year.

• Free cash flow for the quarter was $425 million, and for the first six months was $737.5 million.

• Diluted EPS for the six-month period was $2.41, up 10% from the prior year.

• Net income margin for the quarter was 17.7%.

Outlook and guidance

• Fiscal 2026 revenue guidance raised to $11.15–$11.22 billion, representing 7.8%–8.5% growth.

• Diluted EPS guidance increased to $4.81–$4.88, a 9.3%–10.9% growth rate.

• Guidance assumes constant FX, no future acquisitions, and a 20% effective tax rate.

• Management expects cash flows from operating activities to remain sufficient for liquidity needs and strategic objectives.

• Interest expense projected to rise due to refinancing and buyback activity.