TJX Companies (TJX) Q1 2026 earnings summary

Executive summary

• Q1 FY26 net sales rose 5% year-over-year to $13.1 billion, with consolidated comp sales up 3% at the high end of guidance, driven by increased customer transactions across all divisions and geographies.

• Diluted EPS was $0.92, above plan but down from $0.93 prior year; net income reached $1.0 billion.

• Pre-tax profit margin was 10.3%, down 80 basis points year-over-year but above plan, reflecting higher cost of sales and SG&A ratios.

• All divisions, including Marmaxx, HomeGoods, TJX Canada, and TJX International, posted comp sales and customer transaction growth, supporting market share gains.

• $1 billion was returned to shareholders in Q1 via $613 million in share repurchases and $420 million in dividends.

Financial highlights

• Q1 net sales: $13.1B (+5% YoY); comp sales +3%; e-commerce ~2% of total sales.

• Gross margin: 29.5% (down 0.5pp YoY); pre-tax margin: 10.3% (down 0.8pp YoY); SG&A as % of sales: 19.4% (up 0.2pp YoY).

• Net income: $1.0B; diluted EPS: $0.92 (vs. $0.93 YoY).

• Operating cash flow: $394M (down from $737M YoY); cash and equivalents: $4.3B at quarter end.

• Inventory: $7.1B (up from $6.2B YoY); per-store inventory up 7% YoY.

Outlook and guidance

• Full-year FY26 comp sales expected to rise 2–3%, with consolidated sales of $58.1–$58.6 billion, up 3–4%.

• Full-year pre-tax profit margin guided at 11.3%–11.4% (down 0.1–0.2pp YoY); gross margin expected at 30.4%–30.5%.

• Full-year diluted EPS forecasted at $4.34–$4.43, a 2%–4% increase year-over-year.

• Q2 FY26: comp sales up 2–3%, pre-tax margin 10.4–10.5% (down 0.4–0.5pp YoY), EPS $0.97–$1.00 (+1–4% YoY).

• Guidance assumes current tariffs remain and mitigation efforts offset incremental pressures; unfavorable FX expected to reduce FY26 pre-tax margin by 0.2pp and EPS growth by ~3%.