Ross Stores 2026 Q3 Earnings EPS Up 6.7% Amid 10.4% Revenue Growth

Ross Stores (ROST), ranking by market capitalization, reported its fiscal 2026 Q3 earnings on Dec 10th, 2025. The company delivered results that exceeded expectations, with earnings growth driven by strong revenue performance and operational efficiency.

The company reported Q3 revenue of $5.60 billion, a 10.4% increase from $5.07 billion in 2025 Q3, reflecting robust demand across its core categories. This growth was supported by strategic inventory management and a favorable consumer spending environment. Ross also reaffirmed its full-year guidance, maintaining its FY2026 EPS target range of $6.38–$6.46.

Revenue

Ross Stores’ Q3 revenue surged 10.4% year-over-year to $5.60 billion, with Home Accents and Bed and Bath leading at $1.40 billion. Ladies and Men’s categories contributed $1.29 billion and $896.15 million, respectively. Accessories, Lingerie, Fine Jewelry, and Cosmetics generated $784.13 million, while Shoes and Children’s segments added $728.12 million and $504.09 million, completing the revenue mix.

Earnings/Net Income

Diluted EPS rose 6.7% to $1.59, outpacing the $1.49 reported in 2025 Q3. Net income grew 4.7% to $511.94 million, reflecting improved profitability and cost controls. The earnings growth underscores Ross’s ability to capitalize on its off-price retail model and scale efficiently.

Price Action

The stock gained 2.07% in the latest trading day and 12.88% month-to-date, reflecting investor confidence in the company’s performance.

Post-Earnings Price Action Review

The strategy of buying ROST when earnings beat and holding for 30 days delivered moderate performance but underperformed the benchmark. The strategy achieved a 66.66% return, trailing the benchmark by 20.04%. With a maximum drawdown of 0.00% and a Sharpe ratio of 0.35, the strategy indicated a low-risk profile but lacked significant growth potential.

CEO Commentary

Ross Stores’ CEO, James Grant Conroy (Chief Executive Officer), highlighted the company’s strong Q3 performance, driven by disciplined inventory management and a focus on high-demand categories. “Our ability to deliver consistent revenue growth and margin expansion reflects the strength of our value proposition and operational agility,” Conroy stated. He emphasized investments in e-commerce infrastructure and store optimization to sustain long-term growth, while acknowledging macroeconomic challenges such as inflation and consumer caution.

Guidance

Ross Stores maintained its FY2026 guidance of $6.38–$6.46 EPS and updated Q4 guidance to $1.77–$1.85 EPS, reflecting confidence in its business model and execution capabilities. The CEO expressed optimism about holiday sales and long-term market opportunities.

Additional News

Recent developments include institutional investments in Ross Stores, with Jump Financial LLC acquiring a $7.95 million stake and Bank of Nova Scotia increasing its holdings by 18.8% to $13.7 million. Analysts raised price targets, with Guggenheim and Evercore setting new highs of $199 and $195, respectively. Additionally, Ross declared a $0.405 quarterly dividend, maintaining its payout ratio of 25.31%.

The company’s stock is supported by a robust institutional ownership base, with 86.86% held by hedge funds and large investors. Despite insider sales totaling 48,720 shares in the past 90 days, the stock remains a top recommendation among analysts, with 14 “Buy” ratings and an average price target of $181.19.

Ross Stores’ strategic focus on expanding its store network—opening 40 new locations in Q3—positions it to capture market share in new regions, including Puerto Rico and the New York Metro area. The company’s operational resilience and commitment to value-driven retailing continue to drive investor interest.