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

The Tjx (TJX) reported robust fiscal 2026 Q3 results, with revenue rising 7.5% to $15.12 billion and net income climbing 11.2% to $1.44 billion. The company exceeded quarterly EPS estimates and issued guidance for Q4 and FY2026, signaling confidence in sustained growth. Institutional investors, including Arrowstreet Capital and Fisher Asset Management, significantly increased stakes, while analysts maintained a “Buy” consensus rating.

Revenue

The Tjx’s total revenue surged to $15.12 billion in Q3 2026, driven by strong performance across all segments. The U.S. Marmaxx division led with $11.58 billion in sales, while HomeGoods saw notable growth in the South and West regions, contributing $2.54 billion. International operations also performed well, with TJX Canada reporting $1.49 billion and TJX International $2.05 billion. The Marmaxx segment, including TJ Maxx and Marshalls, remained a key growth driver, generating $9.04 billion in revenue.

Earnings/Net Income

Earnings per share (EPS) rose 13% to $1.30, reflecting improved profitability and cost management. Net income reached $1.44 billion, a 11.2% increase from the prior year, with a pre-tax profit margin of 12.7%. The company’s cost of sales, including buying and occupancy costs, decreased to 67.4% of net sales, contributing to margin expansion. This strong earnings performance underscores TJX’s effective operational execution.

Post-Earnings Price Action Review

The strategy of buying TJX when it beats revenue and selling in 30 days delivered moderate performance, achieving an 83.78% return. However, it trailed the benchmark by 2.03%, with a maximum drawdown of 0.00%, a Sharpe ratio of 0.56, and a volatility of 23.45%. Despite the positive earnings, the stock edged down 1.10% in the latest trading day, though it gained 5.43% month-to-date. Analysts remain optimistic, citing TJX’s resilient business model and expansion plans.

Additional News

1. Institutional Investments: Arrowstreet Capital and Fisher Asset Management significantly increased stakes in TJX, with the latter boosting holdings by 4,187.6% in Q2.

2. Dividend Announcement: TJX declared a $0.425 quarterly dividend, yielding 1.1%, reflecting its commitment to shareholder returns.

3. Insider Sales: CEO Ernie Herrman and Director Amy B. Lane sold shares in November, with Herrman’s sale totaling $3.69 million.

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The Tjx’s Q3 results highlight its ability to navigate macroeconomic challenges while expanding profit margins. With a 7.5% revenue growth and 13% EPS increase, the company reaffirmed its leadership in the off-price retail sector. Analysts’ “Buy” ratings and institutional investments further validate its long-term potential, despite recent insider sales and market volatility.