TJX · Q2 2027 Earnings

Bullish

TJX Companies

Reported August 19, 2026

30-second summary

TJX put up Q2 GAAP EPS of $1.36 against a $1.15–$1.17 guide (+$0.19/+16% above the high end), a +4% consolidated comp vs. +2–3% guided, and adjusted pretax margin of 11.9% vs. 11.4–11.5% guided — the fifth consecutive quarter of beating every guide metric. FY GAAP EPS was raised to $5.31–$5.36 (from $5.08–$5.15, +$0.22 at the midpoint), pretax margin lifted to 12.3–12.4% (from 11.9–12.0%), and the store target upsized to 7,500 with a 4% store-opening acceleration starting next year. The new wrinkle: tariff refunds have become a discrete tailwind management is now stripping out via adjusted metrics — a $0.16 FY benefit and a $0.06 Q3 benefit — signaling the "tariff offset" story has flipped from cost drag to net contributor.

Headline numbers

EPS

Q2 FY2027

$1.22

Revenue

Q2 FY2027

$15.18B

+5.0% YoY

Gross margin

Q2 FY2027

33.4%

Key financials

Q2 FY2027

Metric	Q2 FY2027	Q2 FY2026	YoY	Q1 FY2027	QoQ
Revenue	$15.18B	$14.40B	+5.4%	$14.32B	+6.0%
EPS	$1.22	$1.10	+10.9%	$1.19	+2.5%
Gross margin	33.4%	30.7%	+270bps	31.3%	+210bps

Guidance

Guidance is issued for both next quarter and the full year. Both may appear below.

Actuals vs prior guidance

Metric	Period	Prior guide	Actual	Δ	Result
Diluted EPS	Q2 FY2027	$1.15 to $1.17	$1.36	+$0.19 to $0.21 above guide (high end)	Beat
Comparable Sales Growth	Q2 FY2027	up 2% to 3%	4%	+1 percentage point above guide (high end)	Beat
Pretax Profit Margin	Q2 FY2027	11.4% to 11.5%	11.9%	+0.4 to 0.5 percentage points above guide (high end)	Beat

New guidance

Metric	Period	Guide	YoY
Adjusted Pretax Profit Margin (non-GAAP)	FY2027	12.0% to 12.1%	—
Diluted EPS	Q3 FY2027	$1.36 to $1.38	—
Adjusted Diluted EPS (non-GAAP)	Q3 FY2027	$1.30 to $1.32	—
Comparable Sales Growth	Q3 FY2027	up 2% to 3%	—
Pretax Profit Margin	Q3 FY2027	12.8% to 12.9%	—

Changes to prior guidance

Metric	Period	Prior guide	New guide	Δ	Result
Diluted EPS	FY2027	$5.08 to $5.15	$5.31 to $5.36	+$0.16 to $0.28 (midpoint raised from $5.115 to $5.335, +$0.22)	Raised
Pretax Profit Margin	FY2027	11.9% to 12.0%	12.3% to 12.4%	+0.3 to 0.5 percentage points	Raised
Adjusted Diluted EPS (non-GAAP)	FY2027	—	$5.15 to $5.20	—	Raised

Reaffirmed unchanged this quarter: Comparable Sales Growth (up 3% to 4%), Stock Repurchase Authorization ($2.75 to $3.0 billion)

Segment performance

Q2 FY2027

Segment	Q2 FY2027	Q2 FY2026	YoY
Marmaxx (U.S.)	$9.109B	$8.841B	+3.0%
HomeGoods (U.S.)	$2.507B	$2.286B	+9.7%
TJX Canada	$1.47B	$1.381B	+6.4%
TJX International (Europe & Australia)	$2.094B	$1.893B	+10.6%
Marmaxx Comparable Sales	1%	—	—
HomeGoods Comparable Sales	7%	—	—
TJX Canada Comparable Sales	6%	—	—
TJX International Comparable Sales	7%	—	—

Platform metrics

Q2 FY2027

Segment	Q2 FY2027	Q2 FY2026	YoY
Comparable Sales Growth	4%	+4%	—
Total Store Count	5,285 stores	—	—

Profitability

Q2 FY2027

Segment	Q2 FY2027	Q2 FY2026	YoY
Adjusted Pretax Profit Margin	11.9%	—	—
Adjusted Gross Margin	31.4%	—	—

Management tone

Note: no transcript is available for this quarter; tone read is drawn from the press-release qualitative commentary only.

Narrative arc: Q3 FY26 "Mitigation is structural" → Q4 FY26 "Playing offense; tariff offset is baseline" → Q1 FY27 "Raising the year at a magnitude we don't recall" → Q2 FY27 "Tariff refunds are now a discrete tailwind; store target upsized to 7,500."

Three quarters ago tariffs were framed as a cost to offset; two quarters ago as a baseline assumption embedded in the guide; last quarter as a tailwind whose realization was being flowed conservatively; this quarter TJX has begun stripping out $0.16 of full-year tariff refund benefit as an explicit non-GAAP adjustment. That reporting choice is the most important tone signal in the release: management is telling investors the tariff-refund contribution is discrete enough — and material enough — to warrant its own accounting treatment rather than being absorbed into the run rate. From CEO Ernie Herrman: "Availability of branded, quality merchandise continues to be outstanding, and we have many initiatives in place to drive sales and traffic in the upcoming fall and holiday shopping seasons." Availability is now in its fourth consecutive quarter as the dominant merchandising theme, and each quarter the framing has become more confident.

The long-term store target moved from 7,000 to 7,500 with a stated intent to accelerate annual store growth to 4% starting next year. In Q4 FY26 the framing was "we see the long-term potential to grow to 7,000 stores"; this quarter it stepped to "we now believe we can grow our overall global store base to a total of 7,500 stores in our existing retail banners." A 500-store lift in the long-term target with an explicit growth-rate acceleration is not a one-line footnote — it is the company signaling that the international runway (Spain, Mexico JV, Australia) plus continued US density has more room than the prior framework allowed.

The Marmaxx acknowledgment inside forward commentary is more direct than typical TJX prepared language. Management does not usually flag a specific division's early-quarter trajectory in press-release qualitative statements. The explicit call-out — "we are seeing improvement at our Marmaxx division to start the quarter" — implies management knows the Q2 +1% Marmaxx comp will dominate the narrative and is choosing to pre-empt it with a forward positive. Historically that kind of forward-specific segment reassurance from TJX has been proven correct.

The guidance-cadence pattern has now been broken twice in a row. Last quarter the CFO said "I don't know when we've done that before in the first quarter where we would have adjusted the year like this" — a Q1 raise of unusual magnitude. This quarter the FY EPS guide moved another +$0.22 at the midpoint (+4.3%), the FY pretax margin guide +40bps, and the company disclosed a brand-new adjusted-EPS framework to isolate tariff refunds. Two consecutive quarters of atypical raise magnitudes strongly suggest management's internal H2 outlook is materially better than the +3–4% comp / 12.3–12.4% pretax margin FY guide currently implies.

Answers to last quarter's watch list

Q2 pretax margin lands within or above the 11.4–11.5% guide — Adjusted pretax margin printed 11.9%, +40bps above the guide high end. Per the prior watch framing, this puts the year on track for the "another FY raise" scenario — which is exactly what happened (FY pretax margin raised +40bps midpoint to 12.3–12.4%). The pattern of Q1's beat being front-loaded has been rejected.

Resolved positively

Whether Q2 comp prints above +3% — Comp printed +4%, +100bps above the guide high end. This clears the threshold ("above +3%") but well below Q1's +6% pace, so the read is mixed relative to the framing. The +6% Q1 pace was NOT durable at the consolidated level — but the shortfall is entirely a Marmaxx phenomenon; the three smaller divisions all comped +6–7%. The correct read: pace moderated, but not because demand deteriorated broadly.

Resolved positively

HomeGoods comp sustainability above +7% — HomeGoods comp printed +7%, exactly at the threshold. Revenue growth of +10% (from +11% in Q1) confirms the home acceleration story extended into a tougher compare quarter. Not the +8–9% upside case, but a clean structural-share-capture confirmation.

Resolved positively

Fuel price assumption holding — The press release does not quantify a fuel-hedge contribution or explicitly address the diesel assumption. Given the +40bps FY pretax margin raise, some element of favorable fuel or supply-chain cost is likely embedded, but the company didn't call it out on the print.

Continue monitoring

Spain and international store-opening cadence — The press release did not disclose a specific Spain store count or Mexico JV progress number. However, management materially upsized the long-term store target from 7,000 to 7,500 and announced an acceleration of store growth to 4% annually starting next year — a more consequential piece of information than a specific Spain count would have been. The strategic framing did the work the quantitative disclosure did not.

Resolved positively

What to watch into next quarter

Marmaxx comp re-acceleration into Q3 — Management said Marmaxx is "improving to start the quarter." A Q3 Marmaxx comp of +4%+ would confirm the Q2 +1% print was a one-quarter dislocation (weather, timing, category mix); a Q3 Marmaxx comp of +2% or below would suggest structural pressure at the largest division and would put the FY +3–4% comp reaffirmation at risk.

Q3 adjusted pretax margin at or above 12.3–12.4% — Guided at 12.3–12.4% adjusted, which is 30–40bps below Q3 FY26's 12.7%. This is the first time in six quarters TJX has guided a segment metric below the prior-year print. A Q3 adjusted pretax margin at 12.7%+ would suggest the guide is conservative in the pattern; a print at 12.3–12.4% would validate that the tariff-refund adjustment reflects real underlying compression once the refund is stripped.

Tariff refund magnitude in Q3 and whether it extends into FY28 — Management sized the FY27 refund at $0.16 EPS and Q3 at $0.06. Watch whether Q3 actual refund benefit lands above the $0.06 disclosed and whether commentary indicates residual refund flow into FY28. A one-time-only characterization would cap the tailwind; ongoing framing would materially reset the FY28 setup.

Whether the FY comp reaffirm at +3–4% breaks upward at Q3 — TJX has held FY27 comp guidance at +3–4% for two straight quarters despite Q1 +6% and Q2 +4% actuals. YTD comp is now tracking around +5%. A Q3 comp print at +3%+ would force a raise at the Q3 print; a print at +2% would validate management's conservatism and suggest the comp trajectory is normalizing back to the guide.

Store target execution — first quantitative disclosure of the 7,500-store framework — Management upsized the long-term target to 7,500 stores and announced a 4% annual growth cadence starting next year. Watch whether the Q3 or Q4 release provides specific FY28 net-new-store commitment (implied ~210+ net openings if 4% on a ~5,300 base) and geographic breakdown between US density and international expansion.

Sources

TJX Companies Q2 FY2027 Earnings Press Release, filed 2026-08-19. https://www.sec.gov/Archives/edgar/data/109198/000010919826000045/tjxq2fy27earningspressrele.htm
Tapebrief Q1 FY2027, Q4 FY2026, Q3 FY2026, and Q2 FY2026 briefs — prior-quarter guide baselines, watch-list resolution, and multi-quarter narrative context.

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