The TJX Companies, Inc: Reports Q3 FY26 Results; Comp Sales Growth of 5%, Pretax Profit Margin of 12.7%, and Diluted EPS of $1.28 All Well Above Plan; Increases FY26 Comp Sales Growth, Pretax Profit Margin, and EPS Guidance

Imagery Source: The TJX Companies, Inc
Information Source: The TJX Companies, Inc 
  • Q3 consolidated comparable sales increased 5%, well above the Company’s plan.
  • Q3 pretax profit margin of 12.7%, well above the Company’s plan
  • Q3 diluted earnings per share of $1.28, up 12% and well above the Company’s plan
  • Returned $1.1 billion to shareholders in Q3 through share repurchases and dividends
  • Increases full year FY26 comp sales growth, pretax profit margin, and diluted earnings per share guidance
The TJX Companies, Inc. (NYSE: TJX), the leading off-price apparel and home fashions retailer in the U.S. and worldwide, today announced sales and operating results for the third quarter ended November 1, 2025. Net sales for the third quarter of Fiscal 2026 were $15.1 billion, an increase of 7% versus the third quarter of Fiscal 2025. Third quarter Fiscal 2026 consolidated comparable sales increased 5%. Net income for the third quarter of Fiscal 2026 was $1.4 billion, and diluted earnings per share were $1.28, up 12% versus $1.14 in the third quarter of Fiscal 2025.
For the first nine months of Fiscal 2026, net sales were $42.6 billion, an increase of 7% versus the first nine months of Fiscal 2025. Consolidated comparable sales for the first nine months of Fiscal 2026 increased 4%. Net income for the first nine months of Fiscal 2026 was $3.7 billion. For the first nine months of Fiscal 2026, diluted earnings per share were $3.30, up 9% versus $3.03 in the first nine months of Fiscal 2025.
CEO and President Comments
Ernie Herrman, Chief Executive Officer and President of The TJX Companies, Inc., stated, “I am extremely pleased with our third quarter performance and the excellent execution of our off-price business model by our teams across the Company. Sales, pretax profit margin, and earnings per share all exceeded our expectations. Overall comp sales grew 5%, with strength at every division. We believe this is a testament to our value proposition and treasure-hunt shopping experience, which continue to draw consumers to our retail banners worldwide. With our outperformance in the third quarter, we are raising our sales, pretax profit margin, and earnings per share guidance for the full year. The fourth quarter is off to a strong start, the availability of merchandise continues to be outstanding, and we are excited about the deals we are seeing in the marketplace. With our compelling values and ever-changing, fresh assortments of good, better, and best brands, we are convinced that our stores and e-commerce sites are strongly positioned as gifting destinations for value-conscious shoppers this holiday season. Going forward, we see great potential to continue capturing market share and successfully growing TJX around the globe.”
Margins
For the third quarter of Fiscal 2026, the Company’s pretax profit margin was 12.7%, well above the Company’s plan and 0.4 percentage points above last year’s third quarter pretax profit margin of 12.3%.
Gross profit margin for the third quarter of Fiscal 2026 was 32.6%, up 1.0 percentage point versus last year’s 31.6%, driven by a higher merchandise margin and expense leverage on sales.
Selling, general, and administrative (SG&A) costs as a percentage of sales for the third quarter of Fiscal 2026 were 20.1%, a 0.6 percentage point increase versus last year’s 19.5%. This was driven by incremental store wage and payroll costs, a contribution to the TJX Foundation, and higher incentive compensation accruals.
Net interest income negatively impacted third-quarter Fiscal 2026 pretax profit margin by 0.1 percentage point versus the prior year.
The Company’s third quarter Fiscal 2026 pretax profit margin was above the high end of its plan by 0.6 percentage points. The Company had a stronger-than-expected merchandise margin driven by lower freight costs and a benefit from expense leverage on its above-plan sales. With its above-plan performance, the Company had higher incentive compensation accruals and contributed to the TJX Foundation.
Inventory
Total inventories as of November 1, 2025, were $9.4 billion, compared to $8.4 billion at the end of the third quarter of Fiscal 2025. Consolidated inventories on a per-store basis as of November 1, 2025, including distribution centres, but excluding inventory in transit and the Company’s e-commerce sites, were up 8% on both a reported and constant currency basis versus last year. The Company’s inventory position reflects the terrific buying opportunities it saw in the third quarter. The Company has seen outstanding availability in the marketplace and is very well-positioned to deliver an eclectic mix of assortments and gifts to its stores and online this holiday season. Inventory on a constant currency basis reflects inventory adjusted for the impact of foreign currency, if any, as described below.
Cash and Shareholder Distributions
For the third quarter of Fiscal 2026, the Company generated $1.5 billion of operating cash flow and ended the quarter with $4.6 billion of cash.
During the third quarter of Fiscal 2026, the Company returned a total of $1.1 billion to shareholders. The Company repurchased 4.2 million shares of TJX stock for a total of $594 million and paid $472 million in shareholder dividends.
During the first nine months of Fiscal 2026, the Company returned a total of $3.1 billion to shareholders. The Company repurchased 13.4 million shares of TJX stock for a total of $1.7 billion and paid $1.4 billion in shareholder dividends.
The Company now expects to repurchase approximately $2.5 billion of TJX stock during the fiscal year ending January 31, 2026. The Company may adjust the amount purchased under this plan up or down depending on various factors. The Company remains committed to returning cash to its shareholders while continuing to invest in the business to support the near- and long-term growth of TJX.
Fourth Quarter and Full Year Fiscal 2026 Outlook
The Company’s fourth quarter and full year Fiscal 2026 guidance below assumes that the current level of tariffs on imports into the U.S. as of November 19, 2025, will stay in place for the remainder of the year. The Company’s guidance assumes that it can continue to offset the pressure it expects from tariffs in the fourth quarter of Fiscal 2026.
For the fourth quarter of Fiscal 2026, the Company continues to plan consolidated comparable sales to be up 2% to 3%, pretax profit margin to be in the range of 11.7% to 11.8%, and diluted earnings per share to be in the range of $1.33 to $1.36.
For the full year Fiscal 2026, the Company is now expecting its consolidated comparable sales to be up 4%. The Company is increasing its pretax profit margin outlook to 11.6%, up 0.1 percentage point versus the prior year’s 11.5%. The Company is also raising its diluted earnings per share outlook to be in the range of $4.63 to $4.66, which would represent a 9% increase over the prior year’s $4.26.
Impact of Foreign Currency
Changes in foreign currency exchange rates affect the translation of sales and earnings of the Company’s international businesses into U.S. dollars for financial reporting purposes. In addition, ordinary course, inventory-related hedging instruments are marked to market at the end of each quarter. Changes in currency exchange rates can have a material effect on the magnitude of these translations and adjustments when there is significant volatility in currency exchange rates. Given the global operations of the Company, to facilitate comparability, the Company has provided sales growth and inventory on a constant currency basis, which assumes a constant exchange rate between periods for translation based on the rate in effect for the prior period.
The movement in foreign currency exchange rates had a neutral impact on the Company’s net sales growth in the third quarter of Fiscal 2026 versus the prior year. The overall net impact of foreign currency exchange rates had a $.01 positive impact on third quarter Fiscal 2026 diluted earnings per share.
The movement in foreign currency exchange rates had a one percentage point positive impact on the Company’s net sales growth in the first nine months of Fiscal 2026 versus the prior year. The overall net impact of foreign currency exchange rates had a $.01 positive impact on the first nine months of Fiscal 2026 diluted earnings per share.
A table detailing the impact of foreign currency on TJX’s net sales and pretax profit margin, as well as those of its international businesses, can be found in the Investors section of TJX.com.
The foreign currency exchange rate impact on diluted earnings per share does not include the impact that currency exchange rates have on various transactions, which the Company refers to as “transactional foreign exchange.”
Global Corporate Responsibility Report
During the third quarter of Fiscal 2026, the Company published its 2025 Global Corporate Responsibility Report. The report shares details on the Company’s initiatives related to its reporting areas of workplace, communities, environmental sustainability, and responsible sourcing, in addition to details on governance. TJX has reported on its corporate responsibility efforts since 2011. More information can be found at TJX.com/responsibility.
About The TJX Companies, Inc.
The TJX Companies, Inc., a Fortune 100 company, is the leading off-price retailer of apparel and home fashions in the U.S. and worldwide. Our mission is to deliver great value to customers every day. We do this by offering a rapidly changing assortment of quality, fashionable, brand-name, and designer merchandise at prices generally 20% to 60% below full-price retailers’ regular prices on comparable merchandise. We operate over 5,100 stores across nine countries, including TJ Maxx, Marshalls, HomeGoods, Homesense, and Sierra in the U.S.; Winners, HomeSense, and Marshalls in Canada; TK Maxx and Homesense in Europe; and TK Maxx in Australia. We also operate e-commerce sites for TJ Maxx, Marshalls, and Sierra in the U.S. and three sites for TK Maxx in Europe. Our value mission extends to our corporate responsibility efforts, which are focused on supporting our Associates, giving back to the communities we serve, the environment, and operating responsibly. Additional information about TJX’s press releases, financial information, and corporate responsibility is available at TJX.com.
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The TJX Companies, Inc 
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