TJX · Q3 2026 Earnings

Bullish

TJX Companies

Reported November 19, 2025

30-second summary

TJX delivered Q3 GAAP EPS of $1.28 against a $1.17–$1.19 guide (+7.6% above the high end), a +5% consolidated comp vs. +2–3% guided, and a pretax margin of 12.7% vs. 12.0–12.1% guided — a 60bps beat on the metric management had framed as the post-trough recovery quarter. All four divisions posted positive comps, with Marmaxx accelerating to +6% from Q2's +3%. Management raised every FY metric again (EPS to $4.63–$4.66, comp to +4%, pretax margin to 11.6%), yet held the Q4 comp guide at +2–3% despite saying Q4 is "off to a strong start" — the same conservative cadence that has now been beaten twice in a row.

Headline numbers

EPS

Q3 FY2026

$1.28

Revenue

Q3 FY2026

$15.12B

+7.0% YoY

Gross margin

Q3 FY2026

32.6%

Key financials

Q3 FY2026

Metric	Q3 FY2026	YoY	Q2 FY2026	QoQ
Revenue	$15.12B	+7.0%	$14.40B	+5.0%
EPS	$1.28	—	$1.10	+16.4%
Gross margin	32.6%	—	30.7%	+190bps

Guidance

TJX raised full-year FY2026 EPS, comparable sales, and pretax margin guidance after Q3 significantly beat across all metrics (EPS +$0.09 above high, comps +2pts above guide, pretax margin +0.6pp above high).

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
EPS (Diluted)	Q3 FY2026	$1.17 to $1.19	$1.28	+$0.09 above high end of guide	Beat
Comparable Sales Growth	Q3 FY2026	up 2% to 3%	up 5%	+2 percentage points above high end of guide	Beat
Pretax Profit Margin	Q3 FY2026	12.0% to 12.1%	12.7%	+0.6 percentage points above high end of guide	Beat
Revenue	Q3 FY2026	$13.7 billion to $14.8 billion	$15.117 billion	+$0.317 billion above high end of guide	Beat

New guidance

Metric	Period	Guide	YoY
EPS (Diluted)	Q4 FY2026	$1.33 to $1.36	—
Comparable Sales Growth	Q4 FY2026	up 2% to 3%	—
Pretax Profit Margin	Q4 FY2026	11.7% to 11.8%	—

Changes to prior guidance

Metric	Period	Prior guide	New guide	Δ	Result
EPS (Diluted)	FY2026	$4.52 to $4.57	$4.63 to $4.66	+$0.08 to $0.09 at midpoint	Raised
Comparable Sales Growth	FY2026	up 3%	up 4%	+1 percentage point	Raised
Pretax Profit Margin	FY2026	11.4% to 11.5%	11.6%	+0.1 percentage points	Raised

Segment performance

Q3 FY2026

Segment	Q3 FY2026	YoY
Marmaxx (U.S.)	$9.037B	+7.0%
HomeGoods (U.S.)	$2.539B	+8.0%
TJX Canada	$1.492B	+8.0%
TJX International (Europe & Australia)	$2.049B	+9.0%
Marmaxx Comp Sales	+6%	—
HomeGoods Comp Sales	+5%	—
TJX Canada Comp Sales	+8%	—
TJX International Comp Sales	+3%	—

Platform metrics

Q3 FY2026

Segment	Q3 FY2026
Comparable Sales Growth	5%
Store Count	5,191

Profitability

Q3 FY2026

Segment	Q3 FY2026
Pretax Profit Margin	12.7%

Other KPIs

Q3 FY2026

Segment	Q3 FY2026
Shareholder Returns (Q3)	$1.1 billion

Management tone

Narrative arc: Q1 "Tariff trough ahead, plan reaffirmed" → Q2 "Trough quarter blown past; raising everything" → Q3 "Mitigation is structural; market share is the story."

The tariff narrative has now fully exited the prepared commentary. In Q1 management framed mitigation as a plan to be executed ("we expect to be able to offset"); in Q2 they shifted to past-tense confidence ("we are very pleased with our mitigation strategies"); in Q3 the press release barely mentions tariffs at all, and the Q&A treats them as baseline assumptions to model around. Asked directly by Evercore's Michael Benetti whether the gross margin beat was a roll-off-able freight benefit, CFO John confirmed the Q4 guide assumes tariff offsets continue at Q2/Q3 levels — i.e., mitigation is now embedded in the run-rate, not a quarterly project.

Market share language has escalated for a third straight quarter. Q1 treated share as incremental, Q2 framed it as a "long runway" with 1,800+ store potential, and Q3 the CEO told Goldman's Brooke Roach the company sees "great potential to continue capturing market share and successfully growing TJX around the globe." Combined with the explicit Q&A point that new customer acquisition and existing customer spending are contributing "equally" to Marmaxx's +6%, the structural read is that TJX is winning on both ends of the funnel simultaneously — a different posture than the defensive availability-driven narrative of Q1.

The pricing/value-gap framing has also evolved. In Q1, pricing was discussed as a defensive selective lever ("retail backwards, not cost-plus"); in Q2, management declined to confirm a top-down strategy; in Q3, Citi's Paul Lewis got the most specific answer yet — ticket growth was "a bit more" price than mix, with selective increases following competitor moves, and value perception scores "extremely strong." The bull read: TJX is taking price, comps are accelerating anyway, and value scores aren't eroding. The risk read: pricing-driven comp is harder to sustain than transaction-driven comp, and Q4's +2–3% guide may be management's quiet acknowledgement that the pricing lever has limits.

Inventory commentary continues the offensive framing established in Q2. Jefferies' Corey Tarlow drew out the most telling line: management's biggest internal challenge is "not overbuying" given strong momentum and "off the charts" merchandise availability. That is a quality problem and tonally the opposite of Q1's "hand-to-mouth buying" caution.

Q&A highlights

Brooke Roach · Goldman Sachs

What gives confidence in comp momentum into tough holiday comparisons? What was the benefit to comp from AUR/pricing growth and what are plans for pricing and price gaps during holiday season?

Management attributes momentum to strong value proposition (good/better/best brands at value), pleasant shopping environment, and treasure hunt experience. On pricing: combination of price and mix drove ticket; pricing increases were selective and followed competitor moves; merchants stay laser-focused on maintaining value gap against retail competition; value perception scores remain extremely strong.

5% overall comp sales growth Q3Both transactions and basket were up, with basket driving more of compPricing component drove majority of ticket growth alongside some merchandise mixValue perception scores are extremely strong

Paul Lewis · Citi

Was higher basket driven by mix (NIX) or true price increases? Is pricing opportunity broader across assortment? What about income demographic performance—US-specific or global?

Ticket increase was more price-driven than mix. Some pricing increases followed competitors' moves on categories where they had to adjust; management emphasizes they remain disciplined on value. On demographics: performance was consistent across income groups globally, but lower-income demographic driving comp in majority of geographies—not a trend, just a current tipping, similar to pattern over recent quarters. Both income demos remain healthy.

Ticket increase 'a bit more' price vs. mix drivenLower-income demographic outperforming but described as 'nudging' not a trendConsistent performance across income demographics and geographiesPattern has persisted for multiple quarters

Matthew Boss · JP Morgan

Elaborate on MarMax acceleration—new customer acquisition vs. basket expansion from core customers? Strong start to Q4—any softening or just opportunities ahead?

New customer acquisition and spending from infrequent/frequent customers both driving momentum equally. MarMax showing balanced mix across all business families (apparel and non-apparel healthy). Availability off-the-charts across brands and categories. No significant department lagging. Strong holiday marketing campaign targeting value leadership, new and lapsed customers. Continued investment in payroll, remodels, and store fixtures to maintain shopping environment.

6% comp at MarMaxEqual momentum from new customer acquisition and existing customer spendingNo lagging departments; 'hard to have 6 comp if we had a high liability department'Merchandise availability 'off the charts'

Michael Benetti · Evercore ISI

Gross margin beat driven by freight—does this roll off Q4? What's driving freight, post-Q4 sustainability? Any tariff/pricing mismatch Q3 vs Q4? Early signals of margin headwinds for next year?

Freight benefit came from favorable ocean rates and implementation efficiencies; Q4 expected to maintain tariff offset capability as done in Q2/Q3. Freight dynamics dependent on ocean freight provider behavior—difficult to forecast beyond current quarter. Tariffs consistent Q2-Q4. Not prepared to discuss next year at this time as plans still being finalized. No new headwinds identified for remainder of year.

Freight benefit from combination of ocean rates and movement efficienciesQ4 guidance assumes tariff offsets continue at Q2/Q3 level12.7% pre-tax profit margin Q3, up 40 bps YoY30.9% gross margin full year guidance, up 30 bps

Corey Tarlow · Jefferies

Value perception scores—how does value gap compare historically vs. competitors? Comp shape evolved from traffic-driven to price-driven—concern about value erosion?

Value gap has improved from 2 years ago; shopping environment now part of value equation (efficient, clean, organized + treasure hunt vs. competitors). Out-the-door retail improved vs. others on pricing. Total value proposition stronger vs. historical comparisons. Comp evolution to price-driven (vs. traffic-driven earlier in year) is balanced and does not impact value perception—HomeGoods retail essentially flat while other divisions still up. Biggest internal challenge is not overbuy given strong momentum and high merchandise availability.

Value gap improved vs. 2 years ago5% consolidated comp, all divisions positiveHomeGoods pricing essentially flat, others still upValue perception scores monitored constantly

Answers to last quarter's watch list

Q3 pretax margin lands within or above the 12.0–12.1% guide — Pretax margin printed 12.7%, a 60bps beat above the high end of the guide and a clean confirmation that Q2's beat was not one-quarter execution noise. Combined with the FY raise to 11.6%, tariff mitigation is now demonstrably structural.

Resolved positively

Whether comp guide upside continues to compress — Q3 comp printed +5% against a +2–3% guide (a 200bps beat, wider than Q2's 100bps beat), and FY was raised from +3% to +4%. Comp guide upside has not compressed — if anything, the guide-vs-actual gap is widening.

Resolved positively

Inventory per store trajectory — Per-store inventory was up 8% YoY (balance sheet inventory +12%), with Q&A commentary that merchants are working to "not overbuy" given "off the charts" availability. The buying window remains open.

Continue monitoring

International segment durability — TJX International comp decelerated to +3% from Q2's +5%, with reported revenue growth of +9% (vs. Q2's +13%). The constant-currency double-digit growth implied in Q2 did not persist into Q3 at the same pace. Not a collapse, but the FX-aided narrative of Q2 has partially unwound as expected. Status: Resolved negatively (mild — comp positive but the fade is real).

Marmaxx comp re-acceleration — Marmaxx comp printed +6%, up from Q2's +3% and ahead of consolidated +5%. The largest segment is back to leading consolidated growth, with management noting equal contribution from new customer acquisition and existing customer spending. This is the cleanest resolution on the watch list.

Resolved positively

What to watch into next quarter

Q4 pretax margin lands within or above the 11.7–11.8% guide — Q3's 60bps beat suggests there is room above the guide, but Q4 carries known shrink-accrual headwinds (flagged by the CFO this quarter) and tougher freight comparisons. A miss back below 11.7% would suggest Q3 had non-recurring freight help that doesn't extend.

Whether Q4 comp prints +4–5% against the +2–3% guide — Management said Q4 is "off to a strong start" but held the guide flat from prior. A third consecutive quarter of 200bps comp guide beats would force a re-rating of the conservative-guidance narrative; a print at or near +3% would validate management's caution and signal Q3's pricing-driven momentum is hitting a ceiling.

Marmaxx comp sustainability above consolidated — Q3's +6% Marmaxx comp was the cleanest data point of the print. If Q4 Marmaxx falls back below consolidated, it would suggest Q3 had outsized benefit from specific category or weather tailwinds; a sustained +5%+ would re-anchor the long-runway market-share thesis.

International segment comp stabilization — The decel from +5% to +3% needs to either hold at +3% or recover. A further fade into the +1–2% range would suggest the European and Australian momentum cited in Q2 was peakier than management framed it.

First substantive FY27 commentary — Management explicitly declined to discuss FY27 on the Q3 call. The Q4 print is when initial framing typically arrives; watch for whether the tariff-mitigation tailwinds embedded in FY26's back half are guided to continue, or whether management uses FY27 to reset expectations lower from the now-elevated FY26 base.

Sources

TJX Companies Q3 FY2026 Earnings Press Release, filed 2025-11-19. https://www.sec.gov/Archives/edgar/data/109198/000010919825000058/tjxq3fy26earningspressrele.htm
TJX Companies Q3 FY2026 Earnings Call Q&A — exchanges with Brooke Roach (Goldman Sachs), Paul Lewis (Citi), Matthew Boss (JP Morgan), Michael Benetti (Evercore ISI), and Corey Tarlow (Jefferies).
Tapebrief Q2 FY2026 and Q1 FY2026 briefs — prior quarter guide baselines and watch-list resolution.

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