Cintas Corp (CTAS) Stock Forecast & Price Target

Cintas has demonstrated robust organic revenue growth of 8.6% in 2Q26, propelled by strong performance across its route-based services, including significant gains in First Aid (+14.1%), Fire Protection (+11.5%), and Uniform Rental (+7.8%). The company has raised its fiscal year 2026 revenue guidance, indicating increased expectations for total revenue growth to a range of approximately $11.15 billion to $11.22 billion. Furthermore, the positive shift in the NFIB Small Business Optimism Index, which has surpassed its 52-year average, suggests favorable market conditions that may contribute to ongoing volume gains and new business acquisitions for Cintas.

Cintas faces significant financial challenges, evidenced by a projected 10% decline in CY27E EPS, coupled with a high P/E ratio of 34x that may not be sustainable under adverse macroeconomic conditions. The company has reported a $60 million year-over-year revenue impact from customer churn in 3Q25, resulting in a slight drop in rolling 12-month business retention to 91.9%. Additionally, Cintas experienced a decline in gross margin of 200 basis points year-over-year to 27%, reflecting rising cost of services, which reached $492 million, further complicating its financial outlook amid potential pressures from peak employment and general economic weakness.