#TJX Closes FY26 Above Plan, Lifts Buyback
The TJX Companies, Inc. closed fiscal 2026 with results that ran ahead of its internal plan, capping a year marked by steady comp growth and margin expansion. For the fourth quarter ended January 31, 2026, net sales rose 9% to $17.7 billion, with consolidated comparable sales up 5%. Diluted EPS increased 28% to $1.58. Excluding a net $0.15 per share benefit from a litigation settlement, adjusted EPS was $1.43, up 16%.
For the full year, sales climbed 7% to $60.4 billion, comps rose 5%, and diluted EPS grew 14% to $4.87. Adjusted EPS of $4.73 increased 11% year over year.
#Financial Performance Breakdown
Fourth-quarter pretax margin reached 13.5%. Excluding the net benefit from the credit card interchange litigation settlement and related expenses, adjusted pretax margin was 12.2%, ahead of plan. Gross margin expanded primarily driven by higher merchandise margins and expense leverage on stronger sales, partially offset by unfavorable inventory hedges.
SG&A improved meaningfully. Reported SG&A fell to 17.6% of sales from 19.2% a year ago. On an adjusted basis, SG&A declined 10 basis points to 19.1%. Management cited lower-than-expected inventory shrink and expense leverage as key contributors to the outperformance, offset in part by higher incentive compensation accruals.
For the year, pretax margin expanded 60 basis points to 12.1%, or 20 basis points to 11.7% on an adjusted basis. Operating cash flow totaled $6.9 billion, and the company ended the year with $6.2 billion in cash. Inventory rose to $7.3 billion, with per-store inventories up 8% on a constant currency basis, positioning the company for spring assortments.
#Strategic and Operational Highlights
Performance was broad-based across banners. In Q4, Marmaxx comps rose 5%, HomeGoods increased 6%, TJX Canada grew 7%, and TJX International advanced 4%. Each division delivered at least 4% comp growth for the full year.
The company added 129 net stores in FY26, bringing the total to 5,214 locations and increasing square footage by 2%. Management emphasized that merchandise availability remains “outstanding,” reinforcing its off-price buying model amid what it sees as favorable marketplace conditions.
Capital returns remained aggressive. TJX repurchased $2.5 billion of stock in FY26 and paid $1.8 billion in dividends, returning $4.3 billion total. The board approved a new $3.0 billion repurchase authorization and plans to buy back $2.5 to $2.75 billion in FY27. The company also intends to raise its quarterly dividend 13% to $0.48 per share, subject to board approval.
#Investor Takeaway and Risk Framing
TJX exits FY26 with steady comp momentum, modest margin expansion, and substantial cash generation supporting continued buybacks and dividend growth. Adjusted results point to underlying operating improvement beyond the litigation benefit.
Still, FY27 guidance implies moderated growth, and execution will depend on inventory management, consumer demand, and broader economic conditions. One quarter or year does not define the long-term trajectory.