Cintas delivered a robust second quarter (fiscal 2026) with record revenue and all-time high operating margins, underscoring the strength of its outsourced services model in a mixed macro backdrop. Total revenue rose 9.3% to approximately $2.80 billion, with organic growth at 8.6%, driven by strong performance across all three route-based segments: Uniform Rental Facility Services (7.8% organic growth), First Aid and Safety Services (14.1%), and Fire Protection Services (11.5%), plus a modest 2% in Uniform Direct sales. Gross margin stood at 50.4%, up 60 basis points YoY, while operating income rose 10.9% to $655.7 million and diluted EPS reached $1.21, up 11% versus the prior year. Management raised the full-year revenue guidance to $11.15–$11.22 billion and EPS to $4.81–$4.88, signaling confidence in continued operating leverage and demand for outsourcing, even as the company navigates ERP-related costs and tariff dynamics.
Management stressed a durable, customers-first value proposition, emphasizing high retention, cross-selling opportunities, and ongoing technology investments to sustain growth and margin expansion. Cash generation remained robust, with free cash flow of about $425 million and disciplined capital allocation (Capex ~$106 million, acquisitions ~$86 million, dividends ~$182 million, and $622 million of buybacks in Q2 alone), contributing to a net debt position of roughly $3.04 billion and a strong balance sheet. The combination of steady organic growth, strategic acquisitions, and capital returns supports an constructive long-term outlook, albeit with near-term margin headwinds from ERP implementation and tariff exposure that require ongoing management attention.