TJX Companies Exceeds Q2 Expectations, Raises FY26 Outlook

TJX Companies reported Q2 EPS of $1.10, beating estimates of $1.01, and Q2 sales of $14.40 billion, surpassing the street view of $14.13 billion. The company raised its FY26 GAAP EPS guidance to $4.52-$4.57, above the street estimate of $4.51. TJX Companies CEO Ernie Herrman stated that the company has a long runway ahead to capture additional market share and continue its successful growth around the world.

TJX Companies, Inc. (NYSE: TJX) reported its second-quarter (Q2) results for Fiscal 2026, with earnings per share (EPS) of $1.10, surpassing estimates of $1.01, and net sales of $14.4 billion, exceeding the street view of $14.13 billion. The company also raised its full-year (FY) 2026 GAAP EPS guidance to a range of $4.52 to $4.57, above the street estimate of $4.51.

The company's Q2 consolidated comparable sales increased by 4%, driven by strong demand across all divisions. Net income for the quarter was $1.2 billion, with a diluted EPS of $1.10, representing a 15% increase over the same period last year. For the first half of FY2026, net sales grew by 6%, with net income of $2.3 billion and a diluted EPS of $2.02, up 7% year-over-year.

CEO and President Ernie Herrman stated, "I am extremely pleased with our second quarter performance. Sales, pretax profit margin, and earnings per share were all above our plan. As we have seen through so many different retail and economic environments, consumers were drawn to our excellent values and brands. Customer transactions were up at every division as we saw strong demand at each of our U.S. and international businesses."

The company's Q2 pretax profit margin was 11.4%, well above the Company’s plan and 0.5 percentage points above last year's second quarter pretax profit margin of 10.9%. Gross profit margin increased to 30.7%, driven by favorable hedges. Selling, general, and administrative (SG&A) costs as a percent of sales decreased to 19.5%, primarily due to operational efficiencies.

TJX Companies also returned $1.0 billion to shareholders in Q2 through share repurchases and dividends, with a total of $2.0 billion returned in the first half of FY2026. The company expects to repurchase approximately $2.0 to $2.5 billion of TJX stock during the fiscal year ending January 31, 2026.

For the third quarter of FY2026, the company expects consolidated comparable sales to be up 2% to 3%, with a pretax profit margin in the range of 12.0% to 12.1%, and diluted EPS in the range of $1.17 to $1.19. For the full year FY2026, the company now expects consolidated comparable sales to be up 3%, with a pretax profit margin in the range of 11.4% to 11.5%, and diluted EPS in the range of $4.52 to $4.57.

References:
[1] https://www.nasdaq.com/press-release/tjx-companies-inc-reports-q2-fy26-results-comp-sales-growth-4-pretax-profit-margin