TJX Companies (TJX) Stock: Slides Despite Strong Q4 Sales and Profit Beat

TLDR

• TJX beats on Q4 sales and margins, yet shares slide on the day.
• Strong FY26 results, but FY27 comp outlook keeps expectations in check.
• Profitability improves as shrink eases and operating leverage kicks in.
• $6.2B cash and big returns, with fresh FY27 buybacks lined up.
• Inventory rises into spring, while guidance points to steady growth ahead.

TJX Companies (TJX) shares traded lower at $155.15 as the session progressed, and the stock fell 1.59% despite a strong earnings release. The market showed sustained downward pressure as the chart reflected a clear intraday decline. The company reported strong Q4 and full-year results that exceeded internal expectations.

The TJX Companies, Inc., TJX

Q4 Results Show Solid Sales Growth and Higher Profit Margins

TJX reported fourth-quarter net sales of $17.7 billion, and the figure rose 9% from last year. Comparable sales increased 5% across the company and each division contributed to the overall lift. Pretax profit margin reached 13.5% and the adjusted level improved to 12.2%.

The company posted diluted earnings per share of $1.58 and the adjusted figure reached $1.43. Both metrics increased sharply from last year and moved above the company’s internal plan. Lower shrink expense and better expense leverage helped strengthen profitability during the quarter.

Gross profit margin reached 30.9% while the adjusted margin stood at 31.1%. Merchandise margin expanded and operating leverage improved as sales exceeded forecasts. SG&A costs as a percentage of sales declined after a settlement benefit supported the final results.

Full-Year FY26 Performance Signals Broad Strength Across Divisions

TJX generated full-year net sales of $60.4 billion and lifted its total by 7%. Comparable sales rose 5% across the year and each major banner delivered consistent gains. Full-year diluted earnings per share reached $4.87 and adjusted earnings hit $4.73.

Full-year pretax profit margin reached 12.1% and the adjusted margin came in at 11.7%. Lower inventory shrink expense added support and kept merchandise margins steady. SG&A costs as a share of sales held within the company’s expected range.

Marmaxx, HomeGoods, TJX Canada, and TJX International all posted positive comp sales during the year. Net sales increased across each segment and constant currency figures reinforced the underlying trend. Therefore, the company maintained broad momentum across its global footprint.

Cash Returns, Inventory Position and FY27 Outlook Shape the Road Ahead

TJX ended the year with $6.2 billion in cash and produced $6.9 billion in operating cash flow. The company returned $4.3 billion through share repurchases and dividends during FY26. It also announced plans for $2.50 to $2.75 billion in buybacks for FY27.

Inventory reached $7.3 billion and rose on both a reported and constant currency basis. The company entered the new fiscal year with strong availability and planned to refresh assortments through spring. Store count increased to 5,214 across all regions.

TJX projected FY27 comp sales growth of 2% to 3% and guided earnings to a range of $4.93 to $5.02. The first quarter outlook signaled steady growth with a planned EPS of $0.97 to $0.99. As a result, the company expects continued expansion even while the stock faces short-term pressure.

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