The Tjx 2026 Q3 Earnings Strong Performance as Net Income Surges 11.2%

The Tjx (TJX) reported fiscal 2026 Q3 earnings on Nov 20, 2025, with results exceeding expectations. The company raised full-year guidance and demonstrated robust revenue and profit growth, driven by strong consumer demand for value-driven offerings.

Revenue

The Tjx’s total revenue surged 7.5% to $15.12 billion in 2026 Q3, outpacing the $14.06 billion recorded in 2025 Q3. This growth was fueled by a 5% increase in comparable store sales, with all business segments contributing to the performance. Marmaxx, the largest division, reported 6% comp sales growth, while HomeGoods added 5%. International operations, including TJX Canada (8% comp sales) and TJX International (3% comp sales), also delivered solid results. The company’s off-price model continues to attract budget-conscious shoppers, with expanded inventory and strategic pricing driving higher basket sizes and transaction volumes.

Earnings/Net Income

The Tjx’s EPS increased by 12.3% to $1.30 in 2026 Q3, compared to $1.15 in 2025 Q3. Net income reached $1.44 billion, a 11.2% rise from $1.30 billion in the prior year. The EPS increase underscores the company’s effective cost management and pricing strategies, contributing to its strong profitability.

Price Action

The stock price of The Tjx has dropped 3.12% during the latest trading day, edged down 1.23% during the most recent full trading week, and edged up 1.73% month-to-date.

Post-Earnings Price Action Review

The strategy of buying TJX shares on the date of its revenue raise and holding for 30 days showed strong performance over the past three years. The average return during these three years was 21.8%, with a maximum return of 33.5% in 2023 and a minimum return of 12.5% in 2024. This indicates that this strategy has been consistently profitable, despite some volatility in the market.

CEO Commentary

Ernie Herrman, CEO, highlighted strong Q3 performance with comp sales up 5%, driven by all divisions, and raised full-year guidance for sales and profitability. He emphasized confidence in the fourth quarter, citing robust holiday preparations, fresh inventory, and value-driven marketing. Strategic priorities include expanding store footprints, leveraging flexible supply chains, and maintaining a focus on value. Herrman noted, “Our value proposition of brand, fashion, quality, and price sets us apart,” and expressed optimism about long-term growth through global expansion, including new markets like Spain. Leadership tone is unreservedly optimistic, with Herrman stating, “We remain convinced we have significant opportunities for growth.”

Guidance

John Klinger, CFO, outlined Q4 guidance: comp sales growth of 2-3%, full-year consolidated sales of $59.7B-$59.9B, and full-year diluted EPS of $4.63-$4.66 (up 9% vs. $4.26). Q4 diluted EPS is projected at $1.33-$1.36 (up 8-11% vs. $1.23). Gross margin guidance for 2026 is 30.9% (up 30 bps), with pretax profit margin of 11.6% (up 10 bps). The company expects to offset tariff pressures and maintain disciplined capital allocation, returning $1.1B to shareholders in Q3.

Additional News

The Tjx’s strong earnings prompted a price target increase from $151.75 to $153.96, as analysts highlighted its value proposition amid inflationary pressures. The company also announced a quarterly dividend of $0.425 per share, payable Dec 4, 2025, with a 1.2% yield. Meanwhile, Cumberland Partners Ltd invested $3.59 million in TJX shares during Q2, signaling institutional confidence in its off-price retail model.

Risk Assessment

While TJX Companies exhibits strong financial health, potential risks include sector-specific challenges such as shifts in consumer spending patterns and increased competition in the retail space. The stock's beta of 0.75 indicates lower volatility compared to the broader market, which may appeal to risk-averse investors.