TJX Companies Q3 Earnings Beat Expectations, Raises Full-Year Outlook

November 19, 2025 at 19:22 UTC
4 min read
TJX Companies earnings beat visualization with sales growth and raised outlook for TJX

Key Points

  • TJX Companies reported third-quarter fiscal 2026 earnings per share of $1.28, surpassing analyst estimates of $1.22.
  • Third-quarter net sales rose 7% year-over-year to $15.12 billion, exceeding the consensus forecast of approximately $14.87 billion.
  • Consolidated comparable sales increased 5% in Q3, with all divisions showing growth, led by TJX Canada at 8%.
  • The company raised its full-year fiscal 2026 guidance, expecting comparable sales growth of 4% and earnings per share between $4.63 and $4.66.

Strong Third-Quarter Financial Performance

The TJX Companies, Inc., owner of off-price retail brands including T.J. Maxx, Marshalls, and HomeGoods, reported robust financial results for the third quarter of fiscal 2026, which ended November 1, 2025. The company posted earnings per share (EPS) of $1.28, exceeding the consensus analyst estimate of $1.22 by approximately 5%. Net income for the quarter was $1.44 billion, up from $1.30 billion in the same period a year earlier. Revenue increased 7% year-over-year to $15.12 billion, surpassing analyst expectations of around $14.87 billion. This growth was driven by strong sales across all divisions, with consolidated comparable sales rising 5%, well above the anticipated 3.7% growth. The Marmaxx division (which includes T.J. Maxx, Marshalls, and Sierra stores) saw a 6% increase in comparable sales, HomeGoods grew 5%, TJX Canada led with an 8% increase, and TJX International (Europe and Australia) posted a 3% rise. The company’s pretax profit margin improved to 12.7%, up 0.4 percentage points from the prior year, while gross profit margin increased by one percentage point to 32.6%, reflecting higher merchandise margins and expense leverage on sales.

Operational Highlights and Inventory Position

TJX’s operational execution was highlighted by CEO Ernie Herrman, who emphasized the company’s value proposition and treasure-hunt shopping experience as key drivers attracting consumers worldwide. The retailer’s inventory position strengthened, with total inventories reaching $9.4 billion as of November 1, 2025, compared to $8.4 billion a year earlier. On a per-store basis, inventory was up 8% year-over-year, reflecting the company’s ability to capitalize on buying opportunities in the marketplace. The company operated 5,191 stores globally at the end of the quarter, an increase from 5,057 stores in the prior year period, with a 1.0% increase in total square footage. This expansion supports TJX’s growth strategy by increasing market penetration and accessibility. The availability of merchandise remained strong heading into the holiday season, positioning the company well to meet consumer demand for value-conscious gifting. Additionally, TJX generated $1.5 billion in operating cash flow during the quarter and ended with $4.6 billion in cash and cash equivalents.

Shareholder Returns and Capital Allocation

During the third quarter, TJX returned $1.1 billion to shareholders through a combination of share repurchases and dividends. The company repurchased 4.2 million shares for $594 million and paid $472 million in dividends. For the first nine months of fiscal 2026, TJX returned $3.1 billion to shareholders, including $1.7 billion in share repurchases and $1.4 billion in dividends. In February 2025, the Board approved a new stock repurchase program authorizing up to $2.5 billion in additional share buybacks, with approximately $1.9 billion remaining available as of November 1, 2025. The company also increased its quarterly dividend by 13% to $0.425 per share, reflecting confidence in its cash flow generation and commitment to returning capital to shareholders while investing in growth initiatives.

Outlook and Market Positioning

Following the strong third-quarter results, TJX raised its full-year fiscal 2026 guidance. The company now expects consolidated comparable sales growth of 4%, up from the prior outlook of 3%, and anticipates earnings per share in the range of $4.63 to $4.66, an increase from the previous guidance of $4.52 to $4.57. This revised EPS outlook surpasses the consensus estimate of $4.60. For the fourth quarter, TJX projects comparable sales growth between 2% and 3%, slightly below Wall Street’s forecast of 3.1%, and expects EPS between $1.33 and $1.36, marginally under the consensus of $1.37. CEO Ernie Herrman described the holiday season as off to a strong start, citing outstanding merchandise availability and attractive deals in the marketplace. The company’s off-price retail model continues to benefit from consumer demand for value amid uncertain economic conditions, with a trade-down effect encouraging shoppers to seek discounted brand-name merchandise. Additionally, the company views current tariff levels as manageable, expecting to offset related cost pressures through merchandise margin improvements and operational efficiencies. TJX’s global footprint, including operations in the U.S., Canada, Europe, and Australia, along with its expanding e-commerce presence, positions it well to capture market share and sustain growth.

Key Takeaways

  • TJX Companies delivered a strong third quarter with earnings and sales exceeding analyst expectations, driven by broad-based comparable sales growth.
  • The company raised its full-year guidance for comparable sales and earnings per share, reflecting confidence in its business model and market positioning.
  • Robust inventory levels and merchandise availability support a positive outlook for the holiday season, a critical period for retail performance.

References

  1. 1. https://www.benzinga.com/markets/earnings/25/11/48949342/tjx-cashes-in-on-treasure-hunt-shoppers-sweetens-outlook
  2. 2. https://www.cnbc.com/2025/11/19/tjx-companies-tjx-earnings-q3-2026.html
  3. 3. https://www.wsj.com/business/retail/t-j-maxx-owner-lifts-outlook-again-as-profit-sales-climb-01b0012b?siteid=yhoof2&yptr=yahoo
  4. 4. https://finance.yahoo.com/m/1615ebb0-95b2-3afa-b5fc-9e9a374d78b7/t.j.-maxx-owner-lifts-outlook.html
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