Cintas (CTAS) is likely to report in-line fiscal Q4 results amid small business optimism, stable employment trends and manageable tariff headwinds, RBC Capital Markets said in a Monday note.

RBC analysts as well as analysts polled by FactSet expect the business services firm to report Q4 adjusted earnings of $1.07 per share on revenue of $2.63 billion.

RBC expects the company to provide fiscal 2026 revenue growth guidance of 6.5% to 8% and incremental margins of 25% to 35% as its four focus segments, along with first aid and fire, continue to contribute towards its growth. Also, due to technology investments by the company, it has "significant" potential for margin expansion in materials, operations, and service and distribution, the analysts said.

RBC said it expects the company to focus its capital allocation on tuck-in acquisitions and share repurchases.

RBC raised its price target on the company to $240 from $215, while maintaining a sector perform rating on the stock.

Price: 225.44, Change: -2.22, Percent Change: -0.98