Cintas Corp (CTAS) Stock Forecast & Price Target

Cintas has demonstrated robust organic revenue growth of 8.6% in the second quarter of fiscal year 2026, fueled by significant performance across its various service segments, including Uniform Rental and First Aid. Additionally, the company's positive outlook is supported by the increased NFIB Small Business Optimism Index, which suggests favorable market conditions and potential for further business wins. Furthermore, Cintas has raised its fiscal year 2026 revenue guidance, indicating confidence in sustained growth, with the new projections ranging from approximately $11.15 billion to $11.22 billion.

Cintas faces considerable challenges reflected in its financial projections, particularly with an anticipated 10% decline in CY27E EPS, influenced by adverse macroeconomic conditions affecting both volume and customer retention. In the third quarter of 2025, the company reported a significant $60 million year-over-year revenue loss attributed to customer churn, which coincided with a slight dip in business retention to 91.9%. Furthermore, gross margins have also faced pressure, declining by 200 basis points year-over-year to 27%, as costs of services escalated to $492 million, raising concerns about operational efficiency amid peak employment and broader economic weaknesses.