Cintas' (CTAS) guidance implies revenue growth will moderate in fiscal H2 2026, but the company has the flexibility to continue share buybacks, invest in technology, and pursue M&A opportunities, RBC Capital Markets analysts said in a Thursday note.
The company said Thursday it now expects fiscal 2026 revenue of $11.15 billion to $11.22 billion, compared with the previous guidance of $11.06 billion to $11.18 billion.
Analysts said Cintas' fiscal Q2 organic growth of 8.6% despite concerns about a softer jobs market, highlights its ability to grow in uncertain macro environments.
RBC said Cintas' "strong" performance reflects favorable end-market exposure in various sectors, including healthcare and education, in addition to effective cross-selling and new business wins.
Analysts said the company's digital advancements, like SAP, SmartTruck, and MyCintas portal, should help drive new sales, improve retention, cross-sell, and realize pricing.
RBC has a sector perform rating and a $206 price target on the stock.
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