The TJX Companies is leaning into its off-price strength this holiday season, delivering another quarter of solid growth and raising its full-year outlook as shoppers hunt harder for value in 2025. With higher sales, stronger margins, and an aggressive shareholder return program, the retailer is signaling confidence in its momentum heading into Fiscal 2026’s final quarter.
Q3 FY26 by the numbers
In the third quarter of Fiscal 2026, The TJX Companies reported net sales of 15.1 billion, up 7% versus the same quarter in Fiscal 2025. Consolidated comparable sales rose 5%, while net income reached 1.4 billion, and diluted EPS climbed 12% to $1.28 from $1.14 a year earlier.
Pretax profit margin for the quarter reached 12.7%, 0.4 percentage points higher than last year and 0.6 percentage points above the high end of the company’s plan, helped by a 32.6% gross profit margin driven by higher merchandise margin and sales leverage. SG&A rose to 20.1% of sales, up 0.6 percentage points, reflecting higher store wages, incentive compensation, and a contribution to the TJX Foundation.
Nine-month performance and cash strength
For the first nine months of Fiscal 2026, net sales grew 7% to 42.6 billion, with consolidated comparable sales up 4%. Net income for the period reached 3.7 billion, and diluted EPS rose 9% to 3.30 from 3.03 in the prior-year period.
Operating cash flow for the third quarter came in at 1.5 billion, with cash and cash equivalents totaling 4.6 billion at the quarter’s end. Total inventories reached 9.4 billion, up 1.0 billion from the third quarter of Fiscal 2025, with per-store inventories, including distribution centers but excluding e-commerce and in-transit, up 8% on both a reported and constant-currency basis.
Store growth and global off-price footprint
During the quarter ended November 1, 2025, The TJX Companies added 57 stores, bringing its total store count to 5,191 and increasing total square footage by 1.0% compared with the prior quarter. The retailer now operates over 5,100 stores across nine countries, including TJ Maxx, Marshalls, HomeGoods, Homesense, and Sierra in the United States, plus Winners, HomeSense, and Marshalls in Canada, and TK Maxx and Homesense in Europe and TK Maxx in Australia.
Segment profit for the third quarter reached 2.1 billion, including 1.35 billion from Marmaxx, 344 million from HomeGoods, 222 million from TJX Canada, and 188 million from TJX International, reflecting broad-based strength across banners. The company continues to lean on its off-price model and “treasure-hunt” shopping experience, which CEO Ernie Herrman stated continues to draw customers across all divisions.
Holiday outlook and upgraded guidance
Looking ahead to the fourth quarter of Fiscal 2026, The TJX Companies expects consolidated comparable sales to increase 2% to 3%, pretax profit margin in the 11.7% to 11.8% range, and diluted EPS between $1.33 and $1.36. For the full year, the company now expects consolidated comparable sales growth of 4%, pretax profit margin of 11.6% (up 0.1 percentage point from the prior year), and diluted EPS in the range of $4.63 to $4.66, representing about 9% growth over the prior year’s 4.26.
The company assumes current U.S. tariff levels as of November 19, 2025, will remain in place through year-end and expects to continue offsetting tariff-related pressures through its buying and pricing strategies. Ernie Herrman, CEO and president, said that “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.”
Shareholder returns and responsibility focus
In the third quarter of Fiscal 2026, The TJX Companies returned 1.1 billion to shareholders, including 4.2 million shares repurchased for 594 million and 472 million in dividends. Over the first nine months of the year, total cash returned reached 3.1 billion, with 13.4 million shares repurchased for 1.7 billion and 1.4 billion paid in dividends, and the company now expects about 2.5 billion in repurchases for the full fiscal year.
During the quarter, The TJX Companies also released its 2025 Global Corporate Responsibility Report, outlining initiatives across workplace, communities, environmental sustainability, responsible sourcing, and governance, building on reporting efforts that date back to 2011. The company positions its value mission as extending beyond price to how it supports associates, local communities, and environmental priorities across its off-price network.
