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TJX: TJX Companies' Strong Q4 Earnings Driven by Comp Sales Growth and Margin Expansion

The TJX Companies reported a robust fourth-quarter fiscal 2026, with sales reaching $17.7 billion, a 9% increase year-over-year, and consolidated comp sales up 5%. The adjusted pretax profit margin expanded to 12.2%, up 60 basis points from last year's 11.6%. Adjusted diluted earnings per share (EPS) came in at $1.43, beating estimates of $1.39, representing a 16% increase over the previous year's $1.23. For the full year, net sales grew to $60.4 billion, a 7% increase, with consolidated comp sales also up 5%. The company's full-year adjusted diluted EPS was $4.73, an 11% increase from $4.26 in the prior year.

TJX

USD 155.82

-1.17%

A-Score: 5.6/10

Publication date: February 25, 2026

Full Report

Author: Analystock.ai

📋 Highlights
  • Q4 Sales Growth: Fourth-quarter sales reached $17.7 billion, a 9% increase YoY, with consolidated comp sales up 5%.
  • Improved Profit Margins: Adjusted pretax profit margin rose to 12.2% (60 bps increase YoY), and gross margin expanded by 40–50 bps to 29.9%–30% in Q1 2027 guidance.
  • EPS Growth: Adjusted diluted EPS grew 16% in Q4 ($1.43) and 11% for the full year ($4.73), with 2027 guidance projecting 4%–6% YoY growth.
  • Shareholder Returns: $4.3 billion returned via buybacks/dividends in FY 2026, including a 13% dividend increase and $2.5–$2.75 billion buybacks in FY 2027.
  • Store Expansion & Strategy: Plans to open 146 net new stores (3% growth) and leverage HomeGoods’ 6% comp growth, driven by category expansion and $10 billion in sales in FY 2026.

Guidance and Outlook

For fiscal 2027, TJX Companies expects consolidated sales to range from $62.7 billion to $63.3 billion, representing a 4% to 5% increase, with comp sales growth projected between 2% to 3%. The company anticipates full-year diluted EPS in the range of $4.93 to $5.02, indicating a 4% to 6% growth from the previous year's adjusted $4.73. The guidance suggests a continued strong performance, driven by the company's focus on execution and value proposition.

Operational Highlights

The company plans to open 146 net new stores, bringing the total to over 5,300 stores by year-end, representing a 3% store growth. TJX Companies expects capital expenditures to be between $2.2 billion to $2.3 billion and aims to return significant cash to shareholders through a quarterly dividend increase of 13% to $0.48 per share and $2.5 billion to $2.75 billion in TJX stock buybacks.

Valuation and Pricing

With a current P/E Ratio of 31.91 and an ROE of 35.16%, the market appears to have priced in TJX Companies' strong operational performance and growth prospects. Analysts estimate next year's revenue growth at 5.9%, indicating a continued upward trajectory. The company's ability to maintain its value gap with competitors through selective pricing actions and a strong marketing strategy is expected to drive future growth.

Margin Improvement and Shrinkage

TJX Companies expects merchandise margin improvement due to its ability to source merchandise at favorable prices in a glutted market. The company has also seen a 20 basis point improvement in shrink for two consecutive years, returning to pre-COVID levels. The HomeGoods segment has shown significant improvement, with a 110 basis point leverage for the year, driven by the team's ability to capitalize on various categories.

TJX's A-Score