Tjx Cos Inc New — Financial Results
Revenue and Earnings Grew Solidly Across the Board
| Metric | Fiscal 2026 | Fiscal 2025 |
|---|---|---|
| Net Sales | $60.4B | $56.4B |
| Net Income | $5.5B | $4.9B |
| Diluted EPS | $4.87 | $4.26 |
| Pre-tax Profit Margin | 12.1% | 11.5% |
Net sales rose 7%, driven by a 5% increase in comparable sales (sales at stores open long enough to make a fair year-over-year comparison) and 2% from new locations. Both average transaction size and the number of customer visits increased, suggesting the off-price model is pulling in more shoppers and getting them to spend more per trip.
Margins Improved Thanks to Lower Freight and Shrink Costs
Cost of sales dropped from 69.4% to 69.0% of revenue, while SG&A (the cost of running the business day-to-day) fell from 19.4% to 19.1%. The main drivers were lower freight costs and reduced inventory shrink (merchandise lost to theft or damage). Together these added 0.7 percentage points to the pre-tax margin, a meaningful improvement for a retailer operating at scale.
A One-Time Legal Settlement Boosted U.S. Profits
TJX won a $419 million settlement (net of legal fees) from litigation over credit card interchange fees — the fees retailers pay when customers use cards. The gain flowed through SG&A and added $0.14 to diluted EPS. However, TJX also paid out $198 million in related employee bonuses, so the net benefit was real but partially shared with staff. Investors should note this is non-recurring.
HomeGoods Was the Standout Segment
| Segment | FY2026 Margin | FY2025 Margin |
|---|---|---|
| Marmaxx | 15.1% | 14.1% |
| HomeGoods | 12.2% | 10.9% |
| TJX Canada | 13.4% | 13.5% |
| TJX International | 7.0% | 5.9% |
HomeGoods posted a 1.3 percentage point margin jump, the largest improvement of any segment, fueled by lower freight costs, lower markdowns, and better expense control. TJX International also improved meaningfully, while Canada slipped slightly due to unfavorable currency effects on merchandise costs.
Tariff Uncertainty Is the Biggest Disclosed Risk
Management flagged tariffs as an active concern, noting significant volatility in the global economy as a result. A U.S. Supreme Court ruling invalidated some tariffs under one law, but a new global tariff was subsequently imposed by executive order. TJX believes its flexible buying model — sourcing opportunistically from many suppliers — gives it tools to adapt, but the outcome remains genuinely uncertain and could affect merchandise costs.
The Company Returned $4.3 Billion to Shareholders and Plans to Continue
TJX repurchased $2.5 billion in shares and paid $1.8 billion in dividends in fiscal 2026. The board approved a new $3 billion buyback program, and the quarterly dividend is expected to rise 13% in fiscal 2027 to $1.92 per share annually. With $6.2 billion in cash on hand and $6.9 billion in operating cash flow generated during the year, the company has ample room to sustain this level of shareholder returns.