Shares of discount retailer TJX Companies (TJX) flirted with the red zone at the start of trading on Wednesday despite beating Wall Street estimates for its Q3 2026 earnings results.
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The Massachusetts-based company, which sells brand‑name and designer goods at steep discounts, topped estimates for its comparable sales, revenue, and pre-tax profit margin. The company also raised its guidance for the full fiscal year, as it expects its stores and e-commerce sites to continue to appeal to budget-conscious shoppers during the fast-approaching holiday season.
TJX Sales and Revenue Beat Wall Street
During the three months ended September, TJX saw its earnings per share jump about 12% from a year ago to reach $1.28 per share. The figure comfortably beat analysts’ estimate of $1.23.
Similarly, the off-price apparel and home fashions retailer posted about 8% year-over-year revenue growth: the figure came in at $15.2 billion, well above Wall Street’s predicted $14.85 billion.
Further, TJX’s comparable sales across its brands — sales from stores opened for at least a year during the quarter — climbed 5% from a year ago. This came “with strength at every division,” noted Ernie Herrman, the company’s president and chief executive.
TJX Bullish on Future, But Cautious of Tariffs
Going forward, however, TJX appears cautious with its expectations due to the volatile tariff environment. While its fourth-quarter EPS expectation of between $1.33 and $1.36 per share is below analysts’ consensus of $1.37, its full-year prediction for the same metric stands above Wall Street’s estimates.
For the full fiscal year, TJX expects EPS to come in between $4.63 and $4.66, compared to the consensus estimate of $4.61. At the end of the year, the discount retailer also expects its comparable sales to climb 4% from a year ago, if U.S. tariff levels remain the same as of Wednesday.
Moreover, TJX sees its pre-tax profit margin rising year-over-year to between 11.7% and 11.8% during Q4 2026. “Going forward, we see great potential to continue capturing market share and successfully growing TJX around the globe,” Herrman added.
Attention will now turn to TJX’s direct off-price retail rivals Ross Stores (ROSS) and Burlington Stores (BURL), which are expected to deliver their own third-quarter earnings results on November 20th and 25th, respectively.
Is TJX a Buy, Sell, or Hold?
Across Wall Street, analysts currently have a Strong Buy consensus rating on TJX’s shares. This is based on 17 Buys and one Hold assigned by analysts over the past three months.
Moreover, the average TJX price target of $156.19 indicates about 7% upside from the current trading level. However, it is important to note that these ratings and price targets might change as analysts continue to update their assessments following today’s earnings report.
