AI Takeaway
Cintas (CTAS) delivered strong Q2 FY2026 results with revenue of $2.80B (+9.3% YoY) and net income of $495.3M (+10.4% YoY), driven by broad-based organic growth and disciplined margin expansion.
Revenue
$2.8B
++9.30% YoY
EPS (Basic)
$1.23
++10.81% YoY
Gross Margin
50.4%
++0.61% YoY
Operating Income
$655.71M
++10.88% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Revenue grew 9.3% YoY to $2.80B in Q2 FY2026, reflecting continued demand for uniform rental, facility services, and first aid/safety products. This consistent double-digit-adjacent growth underscores Cintas's pricing power and customer retention strength.
Source: Source: 10-Q Income Statement
Gross margin improved 61 basis points YoY to 50.4%, as revenue growth outpaced cost of revenue growth (8.0% vs. 9.3%), indicating improving operational efficiency and favorable mix shift toward higher-margin services.
Source: Source: 10-Q Income Statement
SG&A expenses rose 10.4% YoY to $756.8M, slightly outpacing revenue growth, reflecting continued investment in sales force, technology, and administrative infrastructure to support the company's expanding customer base.
Source: Source: 10-Q Income Statement
2 more insights available
Upgrade to unlockLong-term debt increased 19.7% YoY to $2.43B, partly driven by aggressive share buyback activity totaling $901.7M year-to-date. While the current ratio of 1.71 remains healthy, sustained debt accumulation could pressure financial flexibility if economic conditions deteriorate.
Source: Source: 10-Q Balance Sheet
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $1.21 versus the $1.22 analyst consensus — a -0.9% miss for Q2 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $2.8B | $2.56B | +9.30% |
Cost of Revenue | $1.39B | $1.29B | +7.97% |
Gross Profit | $1.41B | $1.28B | +10.64% |
Operating Income | $655.71M | $591.39M | +10.88% |
Net Income | $495.34M | $448.5M | +10.45% |
EPS (Basic) | $1.23 | $1.11 | +10.81% |
EPS (Diluted) | $1.21 | $1.09 | +11.01% |
SG&A Expense | $756.77M | $685.31M | +10.43% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $10.13B | $9.37B | +8.18% |
Current Assets | $3.54B | $3.17B | +11.66% |
Current Liabilities | $2.08B | $2.01B | +3.40% |
Stockholders' Equity | $4.46B | $4.29B | +3.78% |
Cash & Equivalents | $200.84M | $122.39M | +64.09% |
Long-Term Debt | $2.43B | $2.03B | +19.71% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash FlowYTD | $945.7M | $905.09M | +4.49% |
Investing Cash FlowYTD | $-309.08M | $-349M | +11.44% |
Financing Cash FlowYTD | $-699.01M | $-773.9M | +9.68% |
Share BuybacksYTD | $901.67M | $651.52M | +38.39% |
D&AYTD | $253.44M | $242.2M | +4.64% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 50.4% | 49.8% | +0.61% |
Operating Margin | 23.4% | 23.1% | +0.33% |
Net Margin | 17.7% | — | — |
ROE | 11.1% | — | — |
ROA | 4.9% | — | — |
Current Ratio | $1.705 | — | — |
Other companies in Diversified Support Services
Cintas delivered strong Q2 FY2026 results with revenue of $2.80B (+9.3% YoY) and net income of $495.3M (+10.4% YoY). Diluted EPS came in at $1.21, up 11.0% from $1.09 in the prior-year quarter, reflecting both earnings growth and the benefit of share buybacks.
Yes, Cintas expanded both gross and operating margins in Q2 FY2026. Gross margin improved to 50.4% from 49.8% a year ago, and operating margin rose to 23.4% from 23.1%, demonstrating modest but consistent operating leverage as revenue growth outpaced cost increases.
On a cumulative fiscal year-to-date basis through Q2 FY2026, Cintas generated $945.7M in operating cash flow, up 4.5% from $905.1M in the same period last year. Implied year-to-date free cash flow was approximately $636.6M after $309.1M in investing activities.
Yes, Cintas has been aggressively repurchasing shares, with year-to-date buybacks of $901.7M through Q2 FY2026, a 38.4% increase compared to $651.5M in the same period of the prior year. This elevated buyback activity has contributed to an 11.0% increase in diluted EPS and a 19.7% rise in long-term debt to $2.43B.
Key risks include rising long-term debt (up 19.7% YoY to $2.43B) driven by aggressive buybacks, SG&A expense growth (10.4%) slightly outpacing revenue growth (9.3%), and labor cost inflation given Cintas's reliance on a large frontline workforce. A macroeconomic slowdown could also reduce customer headcounts and pressure the uniform rental segment.