01—Abstract
Summary
Summary of the 10-K filed March 31, 2026. Cited figures are marked; the original filing is the authoritative source.
TJX Companies reported a strong fiscal 2026 (52 weeks ended January 31, 2026).
Net sales rose 7% to $60.4 billiona, driven by a 5% consolidated comp sales increase, and diluted EPS grew to $4.87 from $4.26, a 14% increase. Pre-tax margin expanded 0.6 points to 12.1%, supported by a lower cost of sales ratio (69.0% vs. 69.4%) and a lower SG&A ratio (19.1% vs. 19.4%). Results were helped by a non-recurring $419 million net gain from a credit card interchange fee litigation settlement, partly offset by $198 million of related expenses, which netted to a $0.14 benefit to diluted EPS.
Investors should treat that one-time item as a meaningful contributor to the year's earnings growth when assessing run-rate profitability. The balance sheet and cash generation remain strong. Operating cash flow reached $6.9 billionb, capital expenditures were $2.0 billion, and the company returned $4.3 billion to shareholders through buybacks ($2.5 billion) and dividends ($1.8 billion).
Cash stood at $6.2 billionc against $2.9 billion of total debt, including $1.0 billion maturing in September 2026. Management plans fiscal 2027 buybacks of $2.5 to $2.75 billion, capital expenditures of $2.2 to $2.3 billion, and a 13% dividend increase to $1.92 per share annualized. A new $3 billion repurchase authorization was approved in January 2026, bringing available capacity to roughly $4.1 billion.
Forward-looking considerations include tariff policy uncertainty. The Supreme Court invalidated IEEPA tariffs in February 2026, which may allow refunds of amounts previously paid, though timing is unclear, and a new global tariff was subsequently imposed. The company is still evaluating the financial effect.
Growth remains a central theme, with 7,000 long-term store potential versus 5,214 stores today and a planned Spain entry. Risk factors also flag exposure to consumer discretionary spending, currency translation, and labor costs. The filing states that no material IT security incident has occurred since a 2006 intrusion.
02—Key points
Key Highlights
- Net sales grew 7% to $60.4 billion, with comp sales up 5%, a 2-point contribution from non-comp sales (new stores), and neutral currency impact.
- Diluted EPS rose to $4.87 from $4.26 (+14%); net income reached $5.5 billion. The interchange litigation settlement added a net $0.14 to EPS.
- Pre-tax margin improved 0.6 points to 12.1%, with cost of sales ratio down 0.4 points to 69.0% and SG&A ratio down 0.3 points to 19.1%.
- Segment profit margins expanded in Marmaxx (15.1%, +1.0 pt) and HomeGoods (12.2%, +1.3 pts), while TJX International improved to 7.0% from 5.9%.
- Operating cash flow of $6.9 billion funded $2.0 billion of capex and $4.3 billion of shareholder returns; cash of $6.2 billion exceeds total debt of $2.9 billion.
- Fiscal 2027 guidance includes $2.5-2.75 billion of buybacks, a $1.92 annualized dividend (+13%), and $2.2-2.3 billion of capex, with roughly $4.1 billion of repurchase capacity available.
- Store base reached 5,214 (+3%), with long-term potential of 7,000 stores and expansion into Spain planned for March 2026; trade and tariff policy remains a key uncertainty.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2026filed March 31, 2026Financial Statements
FY2026 against FY2025
| Line item | FY2026FY2025 | Change |
|---|---|---|
| Revenue | $60.37B$56.36B | +7.1% |
| Cost of Revenue | $41.68B$39.11B | +6.6% |
| Gross Profit | $18.69B$17.25B | +8.4% |
| SG&A Expenses | $11.52B$10.95B | +5.2% |
| Interest Expense | $79.00M$78.00M | +1.3% |
| Net Income | $5.49B$4.86B | +13.0% |
| EPS (Basic) | $4.93$4.31 | +14.4% |
| EPS (Diluted) | $4.87$4.26 | +14.3% |
| Shares Outstanding (Basic) | 1.11B1.13B | −1.2% |
| Shares Outstanding (Diluted) | 1.13B1.14B | −1.2% |
05—Questions
Frequently Asked Questions
How much of TJX's fiscal 2026 earnings growth came from one-time items?
The credit card interchange fee litigation settlement produced a $419 million net gain recorded in SG&A, offset by $198 million of related non-recurring expenses (incentive compensation and a discretionary bonus). The net effect was a $0.14 benefit to diluted EPS. Excluding this, diluted EPS growth would be lower than the reported 14%, so investors should normalize the base when evaluating run-rate profitability.
What is the outlook for capital returns in fiscal 2027?
Management plans to repurchase approximately $2.5 to $2.75 billion of stock and expects quarterly dividends of $0.48 per share, or $1.92 annually, a 13% increase over fiscal 2026. A new $3 billion repurchase authorization was approved in January 2026, and about $4.1 billion remained available as of January 31, 2026. Both plans are subject to cash flow, market conditions, and board approval.
How could the Supreme Court tariff ruling affect TJX?
In February 2026 the Supreme Court invalidated IEEPA tariffs, which may allow TJX to recover amounts previously paid, though the timing and administration of refunds are uncertain. An executive order then imposed a new global tariff in addition to existing non-IEEPA tariffs. The company says the net impact on its sourcing costs, margins, and pricing is still being evaluated and remains uncertain.
Is TJX's debt load a concern for investors?
Total debt was $2.9 billion at January 31, 2026, with $1.0 billion (2.25% notes) maturing in September 2026, which falls in the third quarter of fiscal 2027. TJX held $6.2 billion in cash and had $1.5 billion of undrawn revolving credit capacity, and it reported no short-term borrowings or commercial paper outstanding. The company appears well positioned to repay maturities from cash on hand.
What are the main growth drivers beyond the current store base?
TJX estimates long-term store potential of 7,000 locations versus 5,214 at year-end, including 3,000 Marmaxx stores, 1,800 HomeGoods, 325 Sierra, and 1,225 International. Fiscal 2027 openings include 45 Marmaxx net new stores, 24 HomeGoods, 35 Homesense, and 24 Sierra stores, plus expansion into Spain and new Mexico and Middle East investments. Growth execution, real estate availability, and new-market risks are noted as material factors.
06—Continue