01—Abstract
Summary
Summary of the 8-K filed November 19, 2025. Cited figures are marked; the original filing is the authoritative source.
TJX Companies reported third quarter Fiscal 2026 results (quarter ended November 1, 2025) that beat its internal plan on every key metric.
Net sales rose 7% to $15.1 billiona, consolidated comparable sales grew 5% (versus a planned lower range), pretax profit margin reached 12.7% (up 0.4 points year over year and 0.6 points above the top of plan), and diluted EPS was $1.28, up 12% from $1.14. Gross margin expanded 1.0 point to 32.6% on merchandise margin gains (helped by lower freight costs) and expense leverage, partially offset by SG&A deleverage to 20.1% of sales from incremental store wages, a Foundation contribution, and higher incentive comp accruals. Net income was $1.4 billion, and the company returned $1.1 billion to shareholders during the quarter.
Management raised full-year Fiscal 2026 guidance for comparable sales (now up 4%), pretax profit margin (now 11.6%), and diluted EPS (now $4.63 to $4.66b, a 9% increase over the prior year's $4.26). Fourth quarter guidance was maintained at comparable sales up 2% to 3%, pretax margin of 11.7% to 11.8%, and EPS of $1.33 to $1.36. The guidance assumes current U.S. tariff levels persist and that TJX can continue offsetting tariff-related pressure.
Management also said inventories rose 12% to $9.4 billionc, which it attributes to attractive buying opportunities and holiday positioning; per-store inventory was up 8%. Share repurchases for the fiscal year were increased to approximately $2.5 billion.
The filing is a furnished (not filed) Item 2.02 report, so the press release content is not incorporated into SEC-filed documents. Investors should weigh the strong top-line and margin execution against the inventory build, tariff exposure, and the fact that the Q4 guidance was not raised.
02—Key points
Key Highlights
- Net sales up 7% to $15.1B; consolidated comparable sales up 5%, with growth at every division (Marmaxx +6%, HomeGoods +5%, TJX Canada +8%, TJX International +3%)
- Diluted EPS of $1.28, up 12% year over year and well above plan; nine-month diluted EPS of $3.30, up 9%
- Pretax profit margin of 12.7%, up 0.4 points year over year and 0.6 points above the top of plan, driven by stronger merchandise margin (lower freight) and expense leverage
- Full-year FY26 guidance raised: comp sales up 4%, pretax margin 11.6%, diluted EPS $4.63–$4.66 (9% growth over $4.26)
- Q4 FY26 guidance unchanged: comp sales up 2%–3%, pretax margin 11.7%–11.8%, diluted EPS $1.33–$1.36
- Inventories rose to $9.4B (up from $8.4B a year ago; per-store up 8%), reflecting opportunistic buying for the holiday season
- Returned $1.1B to shareholders in Q3 ($594M buybacks, $472M dividends); FY26 buyback plan increased to about $2.5B, with about $1.9B of program capacity remaining
03—Questions
Frequently Asked Questions
How did TJX perform in Q3 FY26 relative to last year?
Net sales grew 7% to $15.1 billion, comparable sales rose 5%, pretax margin was 12.7% (vs. 12.3%), and diluted EPS was $1.28 (vs. $1.14), up 12%. Results exceeded the company's internal plan on sales, margin, and EPS.
Why did management raise full-year guidance but leave Q4 unchanged?
The company outperformed in Q3 and raised FY26 comp, margin, and EPS outlooks to reflect that beat. Q4 guidance was reaffirmed (comp +2% to 3%, EPS $1.33 to $1.36), though management said the quarter is off to a strong start. The raised full-year figures imply the Q3 outperformance is carried through the year rather than a changed Q4 view.
What are the main risks flagged in the release?
The guidance assumes current U.S. tariff levels remain in place through year-end and that TJX can keep offsetting tariff pressure. Other risks cited include consumer spending, competition, labor costs, currency fluctuations, and supply chain disruption. Inventory rose 12% to $9.4 billion, which could pressure margins if demand softens.
How is TJX returning capital to shareholders?
In Q3 TJX returned $1.1 billion, including $594 million in share repurchases (4.2 million shares) and $472 million in dividends. For the first nine months, it returned $3.1 billion. The FY26 buyback target was raised to about $2.5 billion, with roughly $1.9 billion of authorization remaining as of November 1, 2025, and the quarterly dividend was $0.425 per share.
Is the 8-K financial information formally filed with the SEC?
The press release is furnished as Exhibit 99.1 under Item 2.02, not filed. Under the form's terms, it is not deemed filed under Section 18 of the Exchange Act and is not incorporated by reference into other filings unless specifically referenced. The financial tables themselves are unaudited.
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