Cintas Corp (NASDAQ:CTAS) stock fell 0.87% (As on December 19, 11:21:20 AM UTC-4, Source: Google Finance) after the company reported second quarter results that topped expectations and raised its full year forecast, supported by steady organic growth, higher margins and strong cash generation. The company noted that higher interest costs from refinancing debt and increased commercial paper usage would weigh modestly on full year interest expense, while a gain booked in the prior year’s third quarter would not repeat, creating a year on year headwind.

CTAS in the second quarter of FY26 has reported the adjusted earnings per share of $1.21, beating the analysts’ estimates for the adjusted earnings per share of $1.19, according to Zacks Investment Research. The company had reported the adjusted revenue growth of 9.3 percent to $2.8 billion in the second quarter of FY26, beating the analysts’ estimates for revenue of $2.76 billion. This is driven by 8.6% organic growth, with acquisitions adding 0.7%. Profitability improved as well. Gross margin for the second quarter of fiscal 2026 was $1.41 billion compared to $1.28 billion in last year’s second quarter, an increase of 10.6%. Gross margin as a percentage of revenue was 50.4% for the second quarter of fiscal 2026 compared to 49.8% in last year’s second quarter, an increase of 60 basis points. Operating income for the second quarter of fiscal 2026 increased 10.9% to $655.7 million compared to $591.4 million in last year’s second quarter. Operating income as a percentage of revenue was 23.4% in the second quarter of fiscal 2026 compared to 23.1% in last year’s second quarter. Net income rose 10.4% to $495.3m, reflecting higher volumes across business segments and continued operating discipline.

Cintas raised its full fiscal 2026 guidance. It now expects earnings of $4.81 to $4.88 a share, compared with a prior range of $4.74 to $4.86 and broadly in line with consensus. Revenue is forecast at $11.15bn to $11.22bn, up from an earlier view of $11.06bn to $11.18bn. The company said the guidance assumes no future acquisitions, constant currency and no change in workdays year on year. Fiscal year 2026 interest, net is expected to be approximately $104.0 million compared to $95.5 million in fiscal year 2025, primarily as a result of refinancing senior notes at a higher interest rate in the fourth quarter of fiscal 2025, as well as higher variable rate interest expense from commercial paper as a result of buyback activity during fiscal 2026.