Cintas Corp (CTAS) Stock Forecast & Price Target

Cintas has demonstrated a positive growth trajectory, with organic revenue growth of 8.6% in the second quarter of fiscal year 2026, supported by strong performance across various segments, including Uniform Rental and First Aid. Additionally, the company has raised its fiscal year 2026 revenue guidance to a range of approximately $11.15 billion to $11.22 billion, illustrating confidence in its continued expansion and operational efficiency. The recent increase in the NFIB Small Business Optimism Index to 100.3 indicates a favorable economic environment for Cintas’s outsourcing services, potentially leading to further business wins and volume gains.

Cintas is facing significant financial challenges highlighted by a projected approximate 10% decline in CY27E EPS, influenced by macroeconomic headwinds that threaten both volumes and customer retention. The company reported a $60 million year-over-year revenue impact due to customer churn in 3Q25, contributing to a slight decrease in rolling 12-month business retention to 91.9%. Additionally, the gross margin experienced a decline of 200 basis points year-over-year, dropping to 27%, with service costs rising to $492 million, indicating escalating operational pressures amidst a backdrop of potentially peaking employment and broader economic weakness.