TJX Companies Inc (NYSE:TJX), which operates the off-price retailers TJ Maxx, Marshalls, HomeGoods, and Winners, has reported better-than-expected financial results for the third quarter and raised its full-year guidance.
For Q3, revenue was $15.1 billion, up 7% from $14.06 billion a year earlier and above analysts’ forecasts of $14.84 billion.
Comparable sales increased 5%, which the company said was well above its internal plan and reflected solid consumer demand.
Earnings per share were $1.28, topping the consensus estimate of $1.23 and rising 12% from $1.14 in the same quarter last year.
Net income grew to $1.4 billion, compared with $1.3 billion in the prior-year period.
TJX returned $1.1 billion to shareholders during the quarter through share repurchases and dividends.
Following the results, the company raised its full-year fiscal 2026 guidance. It now expects consolidated comparable sales to grow 4% for the year, up from its prior outlook.
The company also lifted its pretax profit margin forecast to 11.6% and increased its diluted EPS guidance to a range of $4.63 to $4.66, implying roughly 9% growth over fiscal 2025.
“With our outperformance in the third quarter, we are raising our sales, pretax profit margin, and earnings per share guidance for the full year,” TJX CEO Ernie Herman said in a statement.
“The fourth quarter is off to a strong start, the availability of merchandise continues to be outstanding, and we are excited about the deals we are seeing in the marketplace.”
For Q4, TJX guided comparable sales growth of 2% to 3%, pretax profit margin of 11.7% to 11.8%, and diluted EPS of $1.33 to $1.36.
The company said its outlook assumes current US tariff levels remain unchanged for the rest of the fiscal year and that it can offset expected tariff-related pressures.
Analysts at Jefferies highlighted that the Q4 guidance was below consensus estimates of 3.1% comparable sales growth, 11.9% pretax margin, and $1.37 EPS.
Despite the softer near-term outlook, the analysts described the Q3 results as “strong,” highlighting that sales, comparable sales, gross margin, pretax margin, and EPS all exceeded their expectations.
Jefferies also noted that management raised full-year guidance for comparable sales growth, pretax margin, and EPS, citing a strong start to the fourth quarter, robust merchandise availability, and confidence in the company’s positioning as a holiday gifting destination.
The firm maintained its ‘Buy’ rating with a $170 price target, implying upside from current levels of about $145.