Cintas reports Q2 revenue growth of 9.3% to $2.8 billion, raising full-year guidance as operating margins reach all-time highs.
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Summary
- Cintas reported record revenues of $2.8 billion for the second quarter of fiscal 2026, a 9.3% increase year-over-year, with an organic growth rate of 8.6%.
- The company achieved an all-time high operating margin, with operating income increasing 10.9% to $655.7 million and diluted EPS rising 11% to $1.21.
- Cintas raised its fiscal 2026 guidance, expecting revenue between $11.15 billion and $11.22 billion and diluted EPS between $4.81 and $4.88.
- The company highlighted strong performance in its route-based businesses, especially in first aid and safety services and fire protection services, which saw significant revenue growth.
- Management emphasized the success of strategic initiatives such as technology advancements and customer engagement efforts, which have led to all-time highs in retention rates.
- Cintas is actively investing in capital expenditures, technology, and strategic acquisitions, with $106.3 million spent on CapEx and $85.6 million on acquisitions in the second quarter.
- The company continues to focus on key verticals like healthcare, hospitality, education, and government, which are experiencing growth above the company average.
- Cintas is managing tariff and sourcing costs effectively, using geographic diversity and supply chain flexibility to mitigate impacts.
- Management reiterated a commitment to leveraging current growth levers and maintaining a balanced approach to capital allocation, including share buybacks and dividends.
We will discuss our fiscal 2026 second quarter results. After our commentary, we will open the call to questions from analysts. The Private Securities Litigation Reform act of 1995 provides a safe harbor from civil litigation for forward looking statements. This conference call contains forward looking statements that reflect the Company's current views as to future events and financial performance. These forward looking statements are subject to risks and uncertainties which could cause actual results to differ materially from those we may discuss. I refer you to the discussion on these points contained in our most recent filings with the securities and Exchange Commission. I'll now turn the call over to Todd.
Thank you Jared we had another successful quarter reflecting the strength of our value proposition. Cintas delivered record revenues and strong operating margin performance while we continue to invest in our business to position the company for the future. Second quarter total revenue grew a strong 9.3% to $2.8 billion. The organic growth rate which adjusts for the impacts of acquisitions and foreign currency exchange rate fluctuations was 8.6%. Each of our three route based businesses had strong revenue growth in the quarter. Our business continues to operate at a high level as our employee partners deliver strong execution across the board and maintain a clear focus on driving value for our customers and shareholders. Gross margin as a percent of revenue was 50.4%, a 60 basis point increase over the prior year. Operating income grew to $655.7 million, an increase of 10.9% over the prior year. Diluted EPS of $1.21 grew 11% over the prior year. Our strong revenue growth is creating leverage and our cost savings initiatives and investments we've made are helping to improve our employee partners productivity and help them deliver better solutions for our customers. Our operating margin for the company was an all time high. The operating margins for our two largest route based businesses were also all time highs reflecting the high level of execution by our employee partners. Turning to guidance, we are raising our fiscal 2026 financial guidance. We expect our revenue to be in the range of $11.15 billion to $11.22 billion, a total growth rate of 7.8% to 8.5%. We expect diluted EPS to be in the range of $4.81 to $4.88, a growth rate of 9.3% to 10.9%. With that, I'll turn it over to Jim to discuss the details of our second quarter results.