Cintas Corp (CTAS) Stock Forecast & Price Target

Cintas has demonstrated robust organic revenue growth of 8.6% in the second quarter of FY26, supported by strong performances across its various service segments, including Uniform Rental, First Aid, and Fire Protection. The company has raised its FY26 revenue guidance to a new range of approximately $11.15 billion to $11.22 billion, reflecting increasing confidence in its growth trajectory. Additionally, favorable end-market exposure, along with volume gains driven by new business wins, positions Cintas favorably in a market bolstered by rising small business optimism as indicated by the NFIB Small Business Optimism Index, which stands slightly above its long-term average.

Cintas is facing substantial challenges that contribute to a negative outlook for its stock, including a projected 10% decline in CY27E EPS due to worsening macroeconomic headwinds affecting both volumes and customer retention. The company reported a significant $60 million year-over-year revenue decline in 3Q25, attributed to increased churn, resulting in a 12-month business retention rate of 91.9%. Furthermore, a deterioration in gross margin, which fell by 200 basis points to 27%, combined with rising costs of services at $492 million, highlights ongoing financial pressures that could hinder future growth amid peak employment and broader economic weakening.