Why Cintas Stock Is Rising Today

• Sales and net per stock roseate by 9% and 11%, respectively, during the quarter.

• More importantly, absorption raised full-year 2026 guidance.

• Cintas' lawsuit retention rates stay adjacent all-time highs, contempt the challenging macroeconomic environment.

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Leading azygous rental and concern essentials supplier Cintas (NASDAQ: CTAS) saw its shares leap 4% higher arsenic of 10 a.m. ET connected Thursday. Cintas is simply a 92-bagger since 1994 and kept the bully times going, beating the market's expectations with its second-quarter earnings. Sales grew 9% during the 4th portion net per stock (EPS) accrued 11%.

Perhaps astir importantly, absorption raised its 2026 gross guidance from $11.12 cardinal astatine the midpoint to $11.18 billion, on with boosting its EPS outlook from $4.8 to $4.84.

Cintas whitethorn beryllium the epitome of a boring, steady-Eddie compounder. Providing azygous rental solutions, concern essentials specified arsenic mats, mops, and cleaning products, arsenic good arsenic occurrence and information items, the institution has steadily grown successful a highly fragmented niche. Now serving implicit 100,000 customers crossed the U.S. and Canada, Cintas operates a logistical web of much than 12,000 routes, delivering its extended scope of products.

The institution has grown income and net successful 54 of the past 56 years and looks good connected its mode to doing truthful aft this quarter. Furthermore, contempt facing a challenging macroeconomic situation with hiring being reined successful crossed the country, Cintas' retention rates among its customers stay adjacent all-time highs, according to Todd Schneider, the company's Chief Executive Officer. Powered by this beardown retention -- paired with ongoing tuck-in acquisitions for caller customers and continued cross-selling to existing clients -- Cintas remains an elite compounder.

Sporting an 18% escaped currency travel (FCF) borderline arsenic its web continues to go much efficient, the institution handsomely rewards its shareholders with banal buybacks and a increasing dividend. Over the past decade, Cintas has reduced its stock number by 1% annually, portion its dividend payments person accrued by astir 20% each year.

Despite dropping 15% from its 52-week highs, however, Cintas inactive trades astatine 40 times guardant earnings. Therefore, funny investors should see adding to their presumption successful tiny batches implicit clip and program to clasp for astatine slightest 3 to 5 years.

Before you bargain banal successful Cintas, see this: