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January 9, 2026 • 4 min read
The business of uniforms, floor mats, and industrial cleaning supplies might seem mundane, but for Cintas Corporation (CTAS), it is a machine of consistency and profitability. As the largest player in the North American uniform rental and facility services industry, Cintas serves as a bellwether for the broader services economy.
Competing against rivals like Aramark and UniFirst, Cintas differentiates itself through its massive route density and a diversified portfolio that extends beyond just work shirts and pants into first aid, fire protection, and safety training. Let’s unpack the numbers from their latest 10-Q filing to see how this industrial giant performed in the second quarter of their 2026 fiscal year.
To understand how revenue translates into profit at Cintas, the following diagram illustrates the flow of funds for the three months ended November 30, 2025:
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Cintas reported total revenue of $2.80 billion for the quarter, an increase of 9.3% compared to $2.56 billion in the same period last year. What stands out in this report is the composition of that growth. While many mature companies rely heavily on acquisitions to move the needle, Cintas reported organic growth of 8.6%, adjusted for currency fluctuations and M&A activity.
The bulk of this revenue comes from their core Uniform Rental and Facility Services segment, which generated $2.16 billion (roughly 77% of total revenue). This segment involves the iconic white Cintas trucks picking up dirty uniforms and mats and replacing them with clean ones.
However, the First Aid and Safety Services segment is arguably the more dynamic story. This division grew its revenue to $342.2 million, now accounting for 12.2% of the total mix, up from 11.7% the previous year. This suggests Cintas is successfully cross-selling high-margin safety products to its existing uniform clients.
In a service-heavy industry dependent on fuel, labor, and textiles, maintaining margins is a constant battle against inflation. Cintas appears to be winning that battle.
Gross margin for the quarter stood at $1.41 billion, or 50.4% of revenue. For those new to financial analysis, gross margin represents revenue minus the direct costs of services (like the cost of the uniforms, laundry detergents, and plant labor). A gross margin exceeding 50% in an asset-heavy industrial service business indicates significant pricing power and operational efficiency.
Operating income—profit after selling and administrative expenses are deducted—rose to $655.7 million, an increase of nearly 11% year-over-year. This growth in operating income outpaced revenue growth, demonstrating operating leverage; essentially, Cintas is adding revenue faster than it is adding overhead costs.
Management continues to aggressively return capital to shareholders. In this quarter alone, the company spent $635.6 million on share buybacks, purchasing approximately 3.3 million shares. This reduces the total share count, which boosts Earnings Per Share (EPS). Consequently, diluted EPS jumped to $1.21, compared to $1.09 in the prior year period.
On the liability side, there was a notable increase in commercial paper usage. The company listed $550.8 million in debt due within one year (commercial paper) at a weighted average interest rate of 4.09%, compared to zero at the end of the previous fiscal year. This likely funded the robust buyback activity and ongoing capital expenditures.
Cintas delivered a "boring" quarter in the best possible sense: consistent high-single-digit revenue growth, expanding margins, and disciplined capital allocation.
While the company faces risks common to the sector—specifically labor wage inflation and energy costs for their fleet of delivery trucks—their ability to maintain organic growth near 9% suggests they are successfully passing these costs on to customers. As businesses continue to prioritize cleanliness and safety compliance, Cintas remains a dominant, efficient operator in a fragmented market.
Last updated: January 9, 2026