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.

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

• Gross margin improved to 50.4% of revenue, up 60 basis points from last year.

Financial highlights

• Operating income reached $655.7 million, up 10.9% year-over-year, with margin at 23.4%.

• Free cash flow for the first six months was $737.5 million, up from $710.8 million.

• Net income margin for the quarter was 17.7%.

• Selling and administrative expenses rose slightly to 27% of revenue.

• Effective tax rate was 21.2% for the quarter, impacted by discrete items.

Outlook and guidance

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

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

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

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

• Management expects cash flows from operations to remain sufficient for liquidity and strategic objectives.