Executive Snapshot

On February 25, 2026, shares finished at $155.82, down 1.17% (1D) and up 3.82% (1M); the stock is close to its 52-week high of $162.68.

Strong same-store demand was demonstrated by TJX Q4 FY2026 net sales of $17.74 billion and a 5% increase in comparable sales.

The adjusted EPS of $1.43 exceeded the $1.39 expectation by 2.88%.

With a Q4 adjusted pretax margin of 12.2% (compared to a reported pretax margin of 13.5%), profitability increased.

The business plans a larger TJX dividend and more buybacks in FY27, with comps of +2% to +3% and EPS of $4.93 to $5.02.

What’s moving the stock now

Demand was better than anticipated, according to Q4 data released in the TJX earnings report.

In Q4, TJX comparable sales increased by 5%, and both sales and adjusted EPS exceeded projections. Strong competition typically indicates a good mix of consumer traffic, decent product availability, and competitive pricing for an off-price business.

Instead of being aggressive, the FY27 guidance sets a tone of "steady growth."

The FY27 strategy targets a pretax margin of 11.7% to 11.8% and comp growth of 2% to 3%. This indicates that management anticipates sustained momentum, but at a slower rate than in the most successful quarters.

The emphasis was on shareholder returns (dividends plus buybacks).

In addition to repurchasing $2.50 billion to $2.75 billion worth of stock in FY27, the business intends to increase the quarterly dividend to $0.48 per share, which is anticipated to be announced in March and paid in June. Flexibility is increased by a fresh $3.0 billion repurchase authority.

Attention is being paid to margin drivers, particularly shrink.

Because expenses were leveraged across higher sales, and the decrease in inventory was slightly less than anticipated, profitability exceeded internal plans. Due to their significant impact on retail margins, these factors are important for investors monitoring off-price retail stocks to monitor.

Expectations Gap

Q4 FY2026: Actual vs. consensus

• Revenue: $17.74B vs $17.45B → +1.66% surprise.
• Adjusted EPS: $1.43 vs $1.39 → +2.88% surprise.

Sales were higher than anticipated, and profitability was above the market's baseline, making this a clean beat.

Last 4 quarters: consistency check

• Revenue beat estimates in 4 out of 4 quarters (ranging from +0.32% to +1.66%).
• Adjusted EPS beat estimates in 4 out of 4 quarters (ranging from +1.79% to +5.68%).

Even though there have been high expectations, the results have always exceeded expectations.

Guidance vs expectations (FY27 and next quarter)

• Q1 FY27 diluted EPS guidance: $0.97–$0.99
  • This range is roughly ~2% to ~4% below the analyst EPS consensus of $1.01 (the midpoint is ~3% below).
• FY27 diluted EPS guidance: $4.93–$5.02 with comp growth +2% to +3%.

While the full-year projection still suggests consistent growth, the near-term EPS guidance appears slightly conservative relative to the current analyst baseline.

Operating read-through

Across all divisions, same-store growth was widespread.

Overall Q4 comps increased by +5%, with division comps of Marmaxx +5%, HomeGoods +6%, Canada +7%, and International +4%. This is significant because it implies that power was not confined to a single banner.

The main U.S. business drove sales growth, with overseas sales providing additional impetus.

Marmaxx ($10.66B) and HomeGoods ($3.09B) led Q4 sales of $17.74B, with Canada ($1.61B) and International ($2.38B) making significant contributions to the growth.

Margins improved, helped by expense leverage and lower shrink.

• Adjusted pretax margin: 12.2% in Q4.
  Adjusted gross margin: 31.1% and adjusted SG&A: 19.1%.
  

In simple terms, the company kept product profitability healthy and controlled costs well enough that a solid sales quarter translated into stronger earnings.

Context for a single item (the reasons why reported and adjusted differ).

Adjusted diluted EPS was $1.43, whereas Q4 diluted EPS was $1.58. This discrepancy represents a one-time gain from a litigation settlement as well as associated costs that management does not include in adjusted results.

Valuation + positioning

Range context and price behavior.

The stock is closer to its 52-week high ($162.68) than to its 52-week low ($112.10), currently at $155.82. With a stronger +3.82% advance during the last month, the year has begun quite positively (+1.44% YTD).

Volume indicates a high level of interest in the update.

With a recent volume of 8.0M, compared to a 20-day average of about 5.1M, trading surrounding earnings and forecasts was above usual levels.

Valuation anchors.

• P/E (TTM): 34.02x
• Enterprise value: ~$169.57B

The market is typically paying for consistency with this valuation; consistent cash returns, stable margins, and constant comps are typically more important than "breakout" growth.

According to the given numbers, the balance sheet is net cash.

With $6.2 billion in cash and $1.9 billion in debt, the net cash position is $4.3 billion. This can help finance dividends and buybacks without placing undue strain on the balance sheet.

Catalysts

Q1 FY27 outcomes versus guidance: delivery in relation to the 2%–3% comp plan and the $0.97–$0.99 EPS range.

Dividend action: if authorized, a dividend is anticipated to be declared in March and paid in June at a projected $0.48/share.

Buyback pace: performance in relation to the $2.50 billion to $2.75 billion FY27 repurchase plan.

Watch the margin to see if shrink and expense leverage continue to be helpful as comparisons become more commonplace.

Risks

Sensitivity to consumer demand: off-price may be resilient, but if customers retreat, sales and comps may still slow.

Risk of shrink reversal: a portion of the margin's superior performance was linked to lower shrink; if shrink increases again, the margin may compress.

Expectations vs. guidance conservatism: If investors were positioned to expect a higher near-term run rate, the Q1 EPS projection, which is below the current analyst baseline, might put pressure on sentiment.

FX and international volatility: Changes in regional demand and currency fluctuations can affect Canada's and other countries' performance.

Shariah compliance

For investors reviewing Shariah compliant stocks TJX, the screening result for TJX is Pass.. The majority of business activity is allowed: 99.67% Halal, 0.00% Doubtful, and 0.33% Not Halal. Interest-bearing debt is displayed at 2.38% on financial statements, and interest-bearing securities/assets at 3.85%. There was no indication of the primary cause of the Not Halal section.

Bottom line

A "steady execution" perspective is supported by the most recent quarter's strong comparisons, sales and adjusted EPS beats, improved margins, and focus on shareholder returns. With Q1 EPS expectations below the current analyst baseline, the setup suggests that the next big concern is whether FY27 plays out as planned while retaining the margin drivers that drove Q4 performance.

Sources

• TJX Companies Inc. Stock Analysis
• TJX Companies Inc Stock News from GuruFocus
• The TJX Companies, Inc. Reports Q4 and Full Year FY26 Results

Disclaimer: This content is provided for informational purposes only and does not constitute investment, legal, tax, or financial advice, nor a recommendation to buy or sell any security. It is not tailored to your financial situation, risk tolerance, or investment objectives. Past performance does not guarantee future results, and all investing involves risk, including loss of principal. All opinions, analyses, forecasts, and estimates reflect the author’s views as of the publication date and may change without notice. Market conditions can change rapidly.

Stock screenings, Halal status, ratings, and classifications are based on AAOIFI standards and the oversight of Musaffa’s Shariah scholars and may change over time. Musaffa Islamic Socially Responsible Investing (MISRI) rankings are proprietary, may be in beta, and are not guaranteed to be accurate or complete.

Musaffa is a registered investment advisor (RIA) but is not a broker or dealer. Registration does not imply endorsement by the SEC. Musaffa does not execute or solicit securities transactions. Analysts may be internal or third-party contributors and are not necessarily licensed or certified to provide any professional advice.

Information is provided “as is” and may be sourced from third parties. Musaffa does not guarantee accuracy, completeness, or timeliness and is not responsible for errors or third-party content. Logos and trademarks are used for identification only and do not imply endorsement.

Readers should conduct their own research and consult qualified financial and/or religious advisors before making any decisions. For further details, please refer to the General Disclaimer.

Analyst’s Disclosure: I/we hold no positions in any securities mentioned and have no plans to initiate any within the next 72 hours. This article reflects my own opinions, for which I receive no compensation other than from Musaffa. I have no business relationship with any company mentioned.