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

Ross Stores (ROST) reported its fiscal 2026 Q3 earnings on Dec 10th, 2025, delivering robust results with revenue growth outpacing expectations. The company exceeded estimates across key metrics and reaffirmed its FY2025 guidance, signaling confidence in its market position and operational execution.

Revenue

Home Accents and Bed and Bath led the charge with $1.40 billion in revenue, anchoring the company’s diversified product mix. Ladies and Men’s categories contributed $1.29 billion and $896.15 million, respectively, reflecting sustained demand for core apparel lines. Accessories, Lingerie, Fine Jewelry, and Cosmetics added $784.13 million, while Shoes and Children’s segments rounded out the portfolio with $728.12 million and $504.09 million. The total revenue of $5.60 billion marked a 10.4% year-over-year increase, underscoring the company’s ability to capitalize on consumer spending trends.

Earnings/Net Income

Earnings per share (EPS) rose 6.7% to $1.59, driven by disciplined cost management and strong sales execution. Net income climbed to $511.94 million, a 4.7% improvement from the prior year, highlighting the company’s profitability resilience. The EPS growth outperformed revenue growth, indicating enhanced operational efficiency.

Post-Earnings Price Action Review

Following the earnings release, ROST’s stock surged 12.88% month-to-date, reflecting investor optimism. However, a post-earnings trading strategy—buying the stock when results beat and holding for 30 days—delivered mixed results. The strategy returned 66.66%, lagging the benchmark’s 86.69% return, with an excess return of -20.04%. While the approach exhibited low risk (0.00% maximum drawdown and a Sharpe ratio of 0.35), its conservative performance highlighted the stock’s sensitivity to broader market dynamics.

CEO Commentary

Ross Stores’ CEO, James Grant Conroy, emphasized the company’s strategic focus on expanding its omnichannel capabilities and optimizing store footprints. He acknowledged challenges in supply chain logistics but expressed optimism about the holiday season, citing strong demand in core categories and effective inventory management. The leadership team remains committed to balancing growth with profitability, leveraging technology to enhance customer experiences.

Guidance

The company reiterated its FY2025 EPS guidance of $6.38–$6.46 and set Q4 2025 guidance at $1.77–$1.85. Management expects to maintain revenue growth momentum, supported by strategic investments in digital infrastructure and store expansions. Capital expenditures are projected to rise modestly, prioritizing high-traffic locations and technology upgrades.

Additional News

In the three weeks preceding the earnings report, Ross Stores attracted significant institutional attention. Jump Financial LLC acquired a $7.95 million stake, while Norges Bank and Vanguard Group bolstered their positions. Notably, CEO James Grant Conroy and CMO Karen Fleming sold shares, totaling $7,154,172 in insider transactions. The company also declared a $0.405 quarterly dividend, maintaining its payout ratio at 25.31%. Analysts remain cautiously bullish, with 15 “Buy” ratings and a consensus price target of $181.19.