Cintas Corp (NASDAQ:CTAS) posted better-than-expected second-quarter results and raised its outlook for the full fiscal year, supported by solid organic growth, expanding margins and strong cash generation. The update pushed the company’s shares up around 3% in premarket trading.
For the quarter ended November 30, the uniform rental and business services group reported diluted earnings of $1.21 per share, up from $1.09 a year earlier and slightly above market expectations. Revenue increased 9.3% year over year to $2.80 billion, compared with $2.56 billion in the prior-year period. Growth was driven primarily by 8.6% organic expansion, with acquisitions contributing an additional 0.7%.
Margins strengthened across the business. Gross profit rose 10.6% to $1.41 billion, with the gross margin improving by 60 basis points to 50.4%. Operating income climbed 10.9% to $655.7 million, pushing the operating margin to a record 23.4%.
Net income advanced 10.4% to $495.3 million, reflecting higher volumes across Cintas’ service lines and continued cost discipline.
Chief Executive Todd Schneider said the quarter delivered record revenue and strong cash generation, underscoring the effectiveness of the company’s strategy and ongoing investments in technology.
On the back of the solid performance, Cintas raised its guidance for fiscal 2026. The company now expects full-year earnings in the range of $4.81 to $4.88 per share, up from its previous forecast of $4.74 to $4.86 and broadly in line with consensus expectations.
Revenue for the year is now projected at $11.15 billion to $11.22 billion, compared with an earlier outlook of $11.06 billion to $11.18 billion. The company noted that the guidance assumes no additional acquisitions, constant currency effects and no change in the number of workdays year over year.
Cintas added that higher interest costs linked to debt refinancing and increased use of commercial paper are expected to modestly pressure full-year interest expense. In addition, a gain recorded in the third quarter of the prior year will not repeat, creating a year-over-year headwind.