Ross Stores 2026 Q3 Earnings Strong Performance as Net Income Grows 4.7%

Ross Stores (ROST) reported fiscal 2026 Q3 earnings on Dec 10th, 2025, showcasing robust revenue growth and improved profitability. The company exceeded expectations with $1.58 EPS (vs. $1.38) and $5.60 billion in revenue (vs. $5.38 billion). For FY2025, Ross reiterated guidance of $6.38–$6.46 EPS, reflecting confidence in its operational momentum despite market headwinds.

Revenue

Ross Stores’ total revenue surged 10.4% to $5.60 billion in 2026 Q3, driven by strong performance across key segments. Home Accents and Bed and Bath led with $1.40 billion, followed by Ladies at $1.29 billion. Men’s and Accessories, Lingerie, Fine Jewelry, and Cosmetics combined for $1.7 billion, while Shoes and Children’s categories contributed $728.12 million and $504.09 million, respectively. This diversified growth underscores the retailer’s ability to capitalize on consumer demand across multiple product lines.

Earnings/Net Income

Earnings per share (EPS) rose 6.7% to $1.59 in 2026 Q3, reflecting disciplined cost management and operational efficiency. Net income climbed 4.7% to $511.94 million, outpacing revenue growth. The 6.7% EPS growth reflects strong earnings momentum, outpacing the revenue increase.

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.

Additional News

Recent institutional activity highlights investor confidence: Jump Financial LLC acquired a $7.95 million stake in Q2, while Brown Advisory Inc. increased holdings by 31.2% to $9.16 million. Insider selling, however, drew attention, with CEO James Conroy reducing his stake by 20% and CMO Karen Fleming trimming holdings by 3.21%. Analysts remain bullish, with UBS and Bank of America raising price targets to $203 and $200, respectively. Ross also announced a $0.405 quarterly dividend, maintaining a payout ratio of 25.31%.