TJX Earnings: Sales Surge, Profit Forecast Raised
TJX earnings showed a stronger third quarter and a raised FY26 profit outlook; traders balance lifted EPS guidance with a softer Q4 revenue guide.
KEY TAKEAWAYS
- Net sales were $15.12 billion, up 7%, with consolidated comparable sales growth of 5%.
- Company raised full-year GAAP EPS guidance to a $4.65 midpoint.
- Q4 revenue midpoint of $16.76 billion sat below analyst consensus despite a strong holiday start.
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TJX Companies, Inc. reported stronger-than-expected third-quarter results on Nov. 19, 2025, and raised its full-year profit forecast, citing effective sourcing and ample seasonal inventory as drivers of demand.
Third-Quarter Results and Margins
For the quarter ended Nov. 1, 2025, TJX reported net sales of $15.12 billion, up 7% year-over-year, with consolidated comparable sales growth rising 5%, the company said in a press release. Every division contributed to the comparable-sales gain, reflecting broad demand across apparel, home, and seasonal categories. This reinforced TJX’s position as a destination for discounted merchandise.
Net income reached $1.44 billion, and diluted earnings per share rose to $1.28 from $1.14 a year earlier, beating consensus by about 5%. Pretax profit margin improved to 12.7%, while operating margin stood at 12.5%. Free-cash-flow margin increased to 6.6% from 4.4% a year earlier, indicating stronger cash conversion and providing more flexibility for inventory purchases and other priorities.
The company expanded its selling footprint, ending the quarter with 5,191 stores, up from 5,057 a year earlier. The additional locations boosted selling capacity during the seasonal quarter and extended TJX’s reach to value-conscious shoppers.
Guidance and Outlook
TJX raised its full-year fiscal 2026 GAAP earnings per share guidance to a midpoint of $4.65, reflecting the quarter’s outperformance and management’s confidence in execution and merchandise availability for the remainder of the year.
For the fourth quarter, the company set revenue guidance with a midpoint of $16.76 billion, representing about 2.5% year-over-year growth but below analyst consensus. Management attributed the outlook to continued strong demand, robust inventory, and effective sourcing, noting a strong start to the holiday season alongside persistent off-price retail demand. This combination highlights a near-term focus for investors as TJX navigates the critical holiday period and reports November and December results.
