TJX Companies (TJX) Q2 2026 earnings summary

Executive summary

• Q2 net sales rose 7% year-over-year to $14.4 billion, with consolidated comp sales up 4% and store count up 3%.

• Diluted EPS for Q2 was $1.10, a 15% increase year-over-year, and pre-tax profit margin improved to 11.4% from 10.9%.

• Cost of sales and SG&A ratios both decreased by 0.3 percentage points, reflecting operational efficiencies.

• $1 billion was returned to shareholders in Q2 via buybacks and dividends.

• Strong customer transactions and business model flexibility supported results despite macro volatility.

Financial highlights

• Q2 net income was $1.24 billion, up from $1.10 billion year-over-year; six-month net income was $2.28 billion.

• Q2 gross profit margin was 30.7%, up 0.3 percentage points year-over-year, aided by favorable hedges.

• SG&A expenses were 19.5% of sales, down 0.3 percentage points from last year due to operational efficiencies.

• Operating cash flow for the first six months was $2.2 billion, with $4.6 billion in cash at period end.

• Q2 cash dividends declared per share were $0.425, up from $0.375 last year.

Outlook and guidance

• FY26 pre-tax profit margin guidance raised to 11.4%–11.5%; gross margin expected at 30.5%–30.7%.

• FY26 diluted EPS guidance increased to $4.52–$4.57, up 6%–7% year-over-year.

• Q3 FY26 comparable sales expected to rise 2%–3%; Q3 EPS guidance is $1.17–$1.19.

• Capital expenditures for FY26 expected at $2.1–$2.2 billion, funded by cash and internal funds.

• Guidance assumes ability to offset incremental tariff pressures and stable tariff environment.