TJX Companies FY 2026 Results Snapshot

TJX Companies (TJX) closed FY 2026 with fourth quarter revenue of US$17.7b and basic EPS of US$1.58, alongside net income of US$1.8b, reflecting a period where both the top and bottom lines carried weight. Over recent quarters, the company reported revenue of US$14.1b in Q3 FY 2025, US$16.4b in Q4 FY 2025, and US$17.7b in Q4 FY 2026, while quarterly EPS moved from US$1.15 to US$1.23 and then to US$1.58 over the same periods. With trailing twelve month earnings and margins described as high quality and incrementally stronger than a year ago, this latest release provides investors with new data on how effectively TJX is turning sales into profit.

See our full analysis for TJX Companies.

With the headline numbers reported, the next step is to consider how this earnings story aligns with widely held narratives around TJX and where the new information may challenge those views.

Same Store Sales Growth Tops Out At 5%

• For FY 2026, reported same store sales growth stepped from 3% in Q1 to 4% in Q2 and 5% in Q3, showing a steady pattern across the year rather than a one off spike.
• Supporters of the bullish view point to this consistent same store sales growth as a base for future expansion. However, the data also show forecast revenue growth of about 5.6% per year, which is below the cited 7.6% annual revenue growth that bullish analysts are assuming, so the current run rate does not fully back the more optimistic revenue path.

Margins Sit At 9.1% While Costs Rise

• Over the last 12 months, TJX is reported to have a 9.1% net margin, compared with 8.6% previously, on trailing revenue of US$60.4b and net income of about US$5.5b.
• Bears focus on headwinds like wage inflation and foreign exchange, and the guidance that unfavorable FX is expected to trim consolidated sales growth by 1% and EPS growth by 3% fits that concern. Yet the actual trailing margin at 9.1% is already within the 9.2% margin level that bearish analysts build into their 2028 case, which suggests recent profitability is not far from what the cautious view is assuming several years out.
  • Incremental wage and payroll costs and a projected 10 to 20 basis point drag on pretax margin from FX are exactly the kind of pressures bearish narratives highlight.
  • At the same time, the reported margin improvement from 8.6% to 9.1% indicates those pressures have not prevented TJX from operating at a higher profitability level in the recent period.

If you want to see how these cost pressures and margin numbers fit into a fuller cautionary story, skeptics have laid out their case in detail here: 🐻 TJX Companies Bear Case

Premium P/E Versus DCF And Targets

• TJX is shown trading on a 31.5x trailing P/E at a share price of US$155.82, with a DCF fair value of US$102.20 and an analyst price target reference of US$167.88, so the stock sits above the modeled cash flow estimate but below that target level.
• Bulls argue that strong multi year earnings expansion, including 13% earnings growth over the last year and a five year average of 20.5% per year, justifies paying this premium multiple. However, the same data set also shows forecast earnings growth of about 6.48% per year and revenue growth around 5.6% per year, which is slower than broad US market forecasts and makes the 31.5x P/E and the gap to the US Specialty Retail industry average P/E of 20.1x a key tension point for the bullish case.
  • The trailing 9.1% net margin and history of earnings growth support the idea of a high quality business, which bullish narratives lean on when they point to higher future margins.
  • However, the fact that the current market price is above the DCF fair value of US$102.20 while growth forecasts are closer to mid single digits challenges the idea that quality alone explains the premium valuation.

Bulls who think TJX deserves that kind of premium multiple can see how the optimistic story is built around these numbers here: 🐂 TJX Companies Bull Case

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for TJX Companies on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

If this combination of bullish and cautious views leaves you undecided, now may be a good time to review the numbers yourself and determine your own position. To see what is currently drawing investor interest in the company, take a look at the 2 key rewards.

See What Else Is Out There

TJX combines solid margins with forecast earnings and revenue growth in the mid single digits, which can make a 31.5x P/E feel demanding.

If that premium multiple on moderate growth leaves you uneasy, you can immediately compare it with companies screened as 53 high quality undervalued stocks and see where the odds look more compelling.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.