TJX Companies (TJX) Q3 2026 earnings summary

Executive summary

• Q3 FY26 net sales rose 7% year-over-year to $15.1B, with comp sales up 5% and store count up 3%, exceeding internal plans.

• Diluted EPS increased 12% to $1.28, and pre-tax profit margin improved to 12.7%.

• All divisions posted comp sales growth: Marmaxx up 6%, HomeGoods up 5%, TJX Canada up 8%, TJX International up 3%.

• $1.1B was returned to shareholders in Q3 via share repurchases and dividends.

• Raised full-year FY26 guidance for comp sales, profit margin, and EPS, entering the holiday season with strong momentum.

Financial highlights

• Q3 net income was $1.44B, up from $1.30B year-over-year; nine-month net income totaled $3.7B.

• Gross margin increased 1.0pp to 32.6%, mainly due to lower freight costs and expense leverage.

• SG&A as a percent of sales increased 0.6pp to 20.1%, reflecting higher wages, foundation contributions, and incentive accruals.

• Operating cash flow for the nine months ended November 1, 2025, was $3.7B; Q3 operating cash flow was $1.5B.

• Effective tax rate for Q3 was 24.7%, down from 25.3% last year.

Outlook and guidance

• Q4 FY26 guidance: comp sales up 2–3%, consolidated sales of $17.1–$17.3B, pre-tax profit margin 11.7–11.8%, EPS $1.33–$1.36.

• Full-year FY26 guidance: comp sales up 4%, consolidated sales of $59.7–$59.9B, pre-tax profit margin 11.6%, gross margin 30.9%, EPS $4.63–$4.66, up 9% year-over-year.

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

• Plans to repurchase ~$2.5B in stock for FY26, subject to adjustment.