01—Abstract
Summary
Summary of the 10-Q filed December 2, 2025. Cited figures are marked; the original filing is the authoritative source.
TJX Companies, Inc. reported a strong third quarter for fiscal year 2026, with net sales increasing by 7% to $15.1 billiona compared to the prior year period.
This growth was driven by a 5% increase in comparable store sales, a higher average basket size, and an increase in customer transactions across its diverse segments, including Marmaxx and HomeGoods in the U.S., and TJX Canada and TJX International. Diluted earnings per share rose to $1.28b from $1.14 in the prior year's third quarter, reflecting improved profitability and operational efficiency.
The company demonstrated robust cash flow from operations, generating $3.7 billionc for the first nine months of fiscal 2026, and actively returned capital to shareholders through $1.1 billion in share repurchases and dividends during the quarter. Management remains confident in the company's liquidity position and its ability to fund future operations and capital expenditures, which are anticipated to be between $2.1 billion and $2.2 billion for the full fiscal year 2026.
02—Key points
Key Highlights
- Net sales increased 7% year-over-year to $15.1 billion for the third quarter of fiscal 2026.
- Comparable store sales increased by 5% for the quarter, indicating strong customer demand.
- Diluted earnings per share (EPS) rose to $1.28 from $1.14 in the prior year's third quarter.
- Pre-tax profit margin improved to 12.7% from 12.3% in the prior year's quarter.
- Cost of sales as a percentage of net sales decreased by 1.0 percentage point to 67.4%, driven by favorable merchandise margin and lower supply chain costs.
- The company returned $1.1 billion to shareholders via share repurchases and dividends during the quarter.
- Cash flow from operating activities for the nine-month period was $3.7 billion.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2026filed December 2, 2025Financial Statements
Q3 FY2026 against Q3 FY2025
| Line item | Q3 FY2026Q3 FY2025 | Change |
|---|---|---|
| Revenue | $15.12B$14.06B | +7.5% |
| Cost of Revenue | $10.19B$9.62B | +5.9% |
| Gross Profit | $4.93B$4.44B | +10.9% |
| SG&A Expenses | $3.04B$2.75B | +10.6% |
| Net Income | $1.44B$1.30B | +11.2% |
| EPS (Basic) | $1.30$1.15 | +13.0% |
| EPS (Diluted) | $1.28$1.14 | +12.3% |
| Shares Outstanding (Basic) | 1.11B1.13B | −1.3% |
| Shares Outstanding (Diluted) | 1.13B1.14B | −1.3% |
05—Questions
Frequently Asked Questions
What was the primary driver of TJX's sales growth in the third quarter of fiscal year 2026?
The primary driver of TJX's sales growth was a combination of a 5% increase in comparable store sales, a higher average basket size per transaction, and an increase in the number of customer transactions. This strong performance was seen across both apparel and home fashion categories.
How did TJX manage its cost of sales and what was the impact on profitability?
TJX effectively managed its cost of sales, which decreased by 1.0 percentage point as a percentage of net sales to 67.4%. This improvement was attributed to a favorable merchandise margin, which included lower freight costs and lower shrink accrual rates, as well as lower supply chain costs reflecting the higher average ticket per sale. This contributed to an improved pre-tax profit margin of 12.7%.
What is TJX's strategy for returning capital to shareholders?
TJX continues to actively return capital to shareholders through both share repurchases and dividend payments. In the third quarter of fiscal year 2026, the company returned $1.1 billion to shareholders. For the full fiscal year 2026, TJX plans to repurchase approximately $2.5 billion of its stock and has declared quarterly dividends that totaled $1.4 billion for the first nine months of the fiscal year.
How is TJX positioned regarding liquidity and future investments?
TJX maintains a strong liquidity position with $4.6 billion in cash as of November 1, 2025. The company has $1.5 billion available under its credit facilities and generates significant cash flow from operations. Management believes these resources are sufficient to meet operating needs and fund planned capital expenditures of $2.1 billion to $2.2 billion for the full fiscal year 2026, which will primarily focus on store improvements, new store investments, and infrastructure upgrades.
06—Continue