Cintas(US:CTAS)2025-12-18 13:31Revenue and Income - Revenue for Q2 fiscal 2026 was $2.80 billion, a 9.3% increase from $2.56 billion in Q2 fiscal 2025, with organic revenue growth at 8.6%[2] - Net income for Q2 fiscal 2026 was $495.3 million, a 10.4% increase from $448.5 million in Q2 fiscal 2025, with diluted EPS rising to $1.21 from $1.09[5] - Revenue for the three months ended November 30, 2025, was $2,799,992, an increase of 9.3% compared to $2,561,783 for the same period in 2024[23] - Operating income for the six months ended November 30, 2025, reached $1,273,573, reflecting a 10.5% increase from $1,152,421 in the prior year[23] - The company reported a net income of $986,483 for the six months ended November 30, 2025, compared to $900,528 for the same period in 2024[27] Margins and Expenses - Gross margin for Q2 fiscal 2026 was $1.41 billion, up 10.6% from $1.28 billion in the same quarter last year, representing 50.4% of revenue[3] - Cintas' total gross margin for Q2 fiscal 2026 was 50.4%, an increase from 49.8% in Q2 fiscal 2025[18] - Gross margin for the three months ended November 30, 2025, was $1,412,485, up from $1,276,703 in the same period of 2024, indicating a margin improvement[23] - Operating income increased by 10.9% to $655.7 million, with an operating margin of 23.4% compared to 23.1% in Q2 fiscal 2025[4] Shareholder Returns - Cintas returned $1.24 billion to shareholders in the first half of fiscal 2026 through share buybacks and dividends, including a $622.5 million stock repurchase in Q2[6] - The company repurchased common stock amounting to $901,667 during the six months ended November 30, 2025[27] Guidance and Projections - The company raised its full fiscal year 2026 revenue guidance to a range of $11.15 billion to $11.22 billion and diluted EPS guidance to $4.81 to $4.88[7] - Fiscal year 2026 interest expense is expected to be approximately $104.0 million, up from $95.5 million in fiscal year 2025[9] - The effective tax rate for fiscal year 2026 is projected to be 20.0%, consistent with fiscal year 2025[9] Cash Flow and Assets - Free cash flow for the six months ended November 30, 2025, was $737.5 million, compared to $710.8 million for the same period in 2024[22] - Cash and cash equivalents decreased to $200,842 as of November 30, 2025, from $263,973 at the end of May 2025[25] - Total current assets increased to $3,540,088 as of November 30, 2025, compared to $3,436,169 at the end of May 2025[25] - Net cash provided by operating activities for the six months ended November 30, 2025, was $945,704, compared to $905,091 for the same period in 2024[27] Liabilities and Goodwill - Total liabilities increased to $5,677,534 as of November 30, 2025, from $5,140,760 at the end of May 2025[25] - The company’s goodwill increased to $3,483,504 as of November 30, 2025, from $3,400,227 at the end of May 2025[25]