How much of the reported earnings growth came from the one-time litigation settlement?

The settlement produced a $470 million gain, partly offset by $249 million of non-recurring expenses (incentive compensation, a discretionary bonus, and legal fees), for a net pretax benefit of about $221 million. That added $0.15 to Q4 diluted EPS and $0.14 to full-year EPS. Excluding it, Q4 EPS grew 16% and full-year EPS grew 11%, versus the 28% and 14% GAAP growth rates.

Is the underlying business still growing at a healthy pace?

Yes. Comparable sales rose 5% in both Q4 and the full year, and every division posted full-year comps of at least 4%. Adjusted pretax margin still expanded 0.2 points for the year, driven by lower inventory shrink and expense leverage, though higher incentive compensation accruals partly offset these gains.

What does FY27 guidance imply for earnings?

Management expects comps of 2–3% and diluted EPS of $4.93–$5.02. Measured against the adjusted FY26 base of $4.73, that is roughly 4–6% growth, a deceleration from FY26's 11% adjusted increase. Q1 FY27 EPS is guided to $0.97–$0.99 on a 10.3–10.4% pretax margin.

How is TJX returning capital to shareholders?

In FY26 TJX returned $4.3 billion through $2.5 billion of buybacks and $1.8 billion of dividends. Going forward, the quarterly dividend will rise 13% to $0.48, planned FY27 repurchases are $2.50–$2.75 billion, and a new $3.0 billion authorization was approved, equal to about 1.8% of shares outstanding at current prices.

Are there any inventory or balance sheet concerns?

Inventory grew faster than sales on a per-store basis (up 8% constant currency versus 5% comps growth, and 10% reported), which warrants monitoring. However, the company ended the year with $6.2 billion in cash, generated $6.9 billion of operating cash flow, and had total debt of about $2.9 billion ($999 million current plus $1.87 billion long-term), which together suggest a strong liquidity position.

TJX 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed February 25, 2026. Cited figures are marked; the original filing is the authoritative source.

TJX Companies reported strong fourth-quarter and full-year fiscal 2026 results (ended January 31, 2026), with comparable sales up 5%^a in both periods and results above plan on sales, margin, and EPS.

Q4 net sales rose 9% to $17.7 billion^b and full-year net sales reached $60.4 billion, crossing the $60 billion milestone. Q4 diluted EPS was $1.58, up 28%, but this figure includes a one-time net benefit of $0.15 from a credit card interchange fee litigation settlement. Excluding that benefit, adjusted Q4 EPS was $1.43, up 16%, and full-year adjusted EPS was $4.73, up 11% versus GAAP diluted EPS of $4.87.

Investors should focus on the adjusted figures, since the settlement gain of $470 million^c was partly offset by $249 million of non-recurring expenses, for a net pretax benefit of about $221 million. The company's underlying operating trends remained solid. Marmaxx (U.S.) comps were up 5% in Q4, HomeGoods up 6%, TJX Canada up 7%, and TJX International up 4%, with all divisions posting full-year comps of 4% or better.

Inventories rose 10% per store on a reported basis to $7.3 billion^d, which management characterized as a strong position to take advantage of marketplace availability. Management also flagged a strong start to Q1 FY27. Capital returns are increasing.

TJX plans to raise its quarterly dividend 13% to $0.48 per share (expected to be declared in March 2026), and it intends to repurchase $2.50 to $2.75 billion of stock during fiscal 2027. The Board also approved a new $3.0 billion buyback authorization, on top of $1.1 billion remaining under the existing program.

For fiscal 2027, management guides to comparable sales growth of 2% to 3%, a pretax margin of 11.7% to 11.8%, and diluted EPS of $4.93 to $5.02, implying modest growth from the adjusted base of $4.73. Q1 FY27 guidance calls for comps of 2% to 3% and EPS of $0.97 to $0.99.

02—Key points

Key Highlights

Q4 FY26 comparable sales rose 5% and net sales rose 9% to $17.7 billion; full-year net sales reached $60.4 billion (up 7%), surpassing $60 billion.
GAAP diluted EPS was $1.58 for Q4 (up 28%) and $4.87 for the year (up 14%), but both include a litigation settlement benefit of $0.15 and $0.14, respectively.
Adjusted diluted EPS was $1.43 for Q4 (up 16%) and $4.73 for the year (up 11%), both above the company's plan.
Q4 adjusted pretax margin was 12.2%, up 0.6 points; the GAAP pretax margin was 13.5%, boosted by a net settlement benefit of roughly $221 million.
Inventory rose 10% per store to $7.3 billion, and management described the company as well positioned for spring assortments.
Dividend to increase 13% to $0.48 per quarter; planned FY27 buybacks of $2.50–$2.75 billion plus a new $3.0 billion authorization.
FY27 guidance: comps of 2–3%, pretax margin of 11.7–11.8%, and diluted EPS of $4.93–$5.02.

03—Questions

Frequently Asked Questions

How much of the reported earnings growth came from the one-time litigation settlement?
The settlement produced a $470 million gain, partly offset by $249 million of non-recurring expenses (incentive compensation, a discretionary bonus, and legal fees), for a net pretax benefit of about $221 million. That added $0.15 to Q4 diluted EPS and $0.14 to full-year EPS. Excluding it, Q4 EPS grew 16% and full-year EPS grew 11%, versus the 28% and 14% GAAP growth rates.
Is the underlying business still growing at a healthy pace?
Yes. Comparable sales rose 5% in both Q4 and the full year, and every division posted full-year comps of at least 4%. Adjusted pretax margin still expanded 0.2 points for the year, driven by lower inventory shrink and expense leverage, though higher incentive compensation accruals partly offset these gains.
What does FY27 guidance imply for earnings?
Management expects comps of 2–3% and diluted EPS of $4.93–$5.02. Measured against the adjusted FY26 base of $4.73, that is roughly 4–6% growth, a deceleration from FY26's 11% adjusted increase. Q1 FY27 EPS is guided to $0.97–$0.99 on a 10.3–10.4% pretax margin.
How is TJX returning capital to shareholders?
In FY26 TJX returned $4.3 billion through $2.5 billion of buybacks and $1.8 billion of dividends. Going forward, the quarterly dividend will rise 13% to $0.48, planned FY27 repurchases are $2.50–$2.75 billion, and a new $3.0 billion authorization was approved, equal to about 1.8% of shares outstanding at current prices.
Are there any inventory or balance sheet concerns?
Inventory grew faster than sales on a per-store basis (up 8% constant currency versus 5% comps growth, and 10% reported), which warrants monitoring. However, the company ended the year with $6.2 billion in cash, generated $6.9 billion of operating cash flow, and had total debt of about $2.9 billion ($999 million current plus $1.87 billion long-term), which together suggest a strong liquidity position.

04—Continue

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