Cintas Raises Full-Year Forecast After Strong Quarter and Margin Expansion

Core Insights - Cintas Corp. reported second-quarter results that exceeded analyst expectations and raised its full-year outlook, driven by steady organic growth, margin expansion, and strong cash generation [1] Financial Performance - The company posted diluted earnings of $1.21 per share for the quarter ended November 30, an increase from $1.09 a year earlier and slightly above analyst expectations [2] - Revenue increased by 9.3% year over year to $2.80 billion from $2.56 billion, supported by 8.6% organic growth and an additional 0.7% contribution from acquisitions [2] - Gross profit rose by 10.6% to $1.41 billion, with gross margin expanding by 60 basis points to 50.4% [3] - Operating income climbed by 10.9% to $655.7 million, resulting in a record high operating margin of 23.4% [3] - Net income increased by 10.4% to $495.3 million, reflecting higher volumes across business segments and continued operating discipline [3] Strategic Outlook - CEO Todd Schneider highlighted that the quarter delivered record revenue and strong cash generation, emphasizing effective execution of the company's strategy and ongoing technology investments [4] - Cintas raised its fiscal 2026 guidance, now expecting earnings of $4.81 to $4.88 per share, compared to a prior range of $4.74 to $4.86, aligning with consensus forecasts [5] - Revenue projections were updated to range from $11.15 billion to $11.22 billion, up from the earlier outlook of $11.06 billion to $11.18 billion [5]