TJX Reports Strong Q2 FY26 Profit and Raises Full-Year Earnings Outlook

The TJX Companies, Inc. (TJX.US) reported strong financial results for the second quarter of fiscal 2026, with net sales reaching $14.4 billion, marking a 7% increase compared to the same period last year. Diluted earnings per share (EPS) were $1.10, up 15% from $0.96 in the prior year and well above the company’s plan. This performance significantly exceeded the analyst EPS estimate of $1.01.

Key Business Drivers

The company experienced robust performance across all divisions, with consolidated comparable sales increasing 4%. Marmaxx (U.S.) reported a 3% increase in comparable sales, while HomeGoods (U.S.) saw a 5% rise. TJX Canada achieved notable comparable sales growth of 9%, and TJX International (Europe & Australia) comparable sales grew by 5%.

Customer transactions were up across every division, reflecting strong consumer demand for the company’s value-oriented offerings. The gross profit margin for the quarter was 30.7%, a 0.3% increase from last year, primarily due to favorable hedges. Selling, general, and administrative (SG&A) costs as a percent of sales decreased by 0.3% to 19.5%, driven by operational efficiencies and timing benefits from certain expenses.

Management Outlook

For the third quarter of fiscal 2026, TJX anticipates consolidated comparable sales to increase by 2% to 3%. The company projects diluted earnings per share for Q3 to be in the range of $1.17 to $1.19, which would represent a 3% to 4% increase year-over-year. This outlook assumes current tariff levels will remain in place and that the company can offset their pressure.

The full-year fiscal 2026 guidance has been raised, with consolidated comparable sales now expected to be up 3%. Diluted earnings per share are projected to be in the range of $4.52 to $4.57, representing a 6% to 7% increase over the prior year. This revised full-year outlook incorporates the strong Q2 results and a smaller negative impact from foreign currency exchange rates than previously anticipated.

Capital Allocation and Inventory Management

The company generated $1.8 billion in operating cash flow during the second quarter and ended the period with $4.6 billion in cash. TJX returned $1.0 billion to shareholders in Q2 through share repurchases of $515 million and dividend payments of $474 million. For the first half of fiscal 2026, $2.0 billion was returned to shareholders, including $1.1 billion in share repurchases and $894 million in dividends.

Total inventories as of August 2, 2025, increased to $7.4 billion from $6.5 billion in the prior year, reflecting significant buying opportunities. TJX emphasized its strong inventory position with quality, branded merchandise, enabling it to flow fresh assortments for the fall and holiday seasons.