TJX Companies (NYSE: TJX) Beats Q2 FY2027 EPS, Raises Full-Year Guidance, Lifts Store Target to 7,500

Q2 FY2027 Results

The TJX Companies (NYSE: TJX) reported Q2 FY2027 results on August 19, 2026, posting GAAP diluted EPS of $1.36, up 23.6% year over year from $1.10, and adjusted diluted EPS of $1.22, beating the $1.20 consensus estimate. Net sales reached $15.2 billion, a 5.4% increase versus Q2 FY2026, while consolidated comparable sales rose 4%, above the company's internal plan.

Key Metrics

• Net sales: $15.2 billion in Q2 FY2027, up from $14.4 billion in Q2 FY2026
• GAAP pre-tax profit margin: 13.3%, expanding 1.9 percentage points year over year; adjusted pre-tax profit margin of 11.9%, up 0.5 percentage points
• GAAP diluted EPS: $1.36, up 23.6% YoY; adjusted diluted EPS of $1.22, up 10.9% YoY, beating the $1.20 consensus
• Net income: $1.5 billion for the quarter
• Operating cash flow: $2.2 billion generated in Q2; cash on hand ended at $6.0 billion
• Shareholder returns: $1.3 billion returned in Q2 via $798 million in share repurchases (5.1 million shares) and $529 million in dividends

What Drove the Results

Adjusted EPS of $1.22 beat the $1.20 consensus by approximately 1.7%. The GAAP figures were further lifted by a $219 million net benefit from IEEPA tariff refunds, which added $0.14 to GAAP diluted EPS and contributed 1.4 percentage points to the GAAP pre-tax profit margin. Excluding that benefit, adjusted pre-tax margin expanded a more modest 0.5 percentage points, driven by merchandise margin gains partially offset by incremental store wage and payroll costs, which pushed SG&A as a percentage of sales up 0.2 percentage points on an adjusted basis.

The headline comparable sales figure of 4% masked a notable divergence across segments. HomeGoods posted a 7% comparable sales increase, TJX International delivered 7%, and TJX Canada came in at 6%. Marmaxx, the company's largest U.S. segment combining TJ Maxx, Marshalls, and Sierra, grew comparable sales just 1%, below the company's own expectations. CEO and President Ernie Herrman acknowledged the Marmaxx shortfall but noted the third quarter had opened with improvement in that division.

Gross profit margin for the quarter was 33.4%, up 2.7 percentage points from 30.7% in Q2 FY2026. On an adjusted basis, excluding the tariff refund impact, gross profit margin was 31.4%, up 0.7 percentage points year over year.

Why It Matters

TJX raised its full-year FY2027 GAAP diluted EPS guidance to a range of $5.31 to $5.36, with adjusted diluted EPS guidance of $5.15 to $5.20. Full-year GAAP pre-tax profit margin guidance was lifted to 12.3% to 12.4%, while adjusted pre-tax profit margin guidance was raised to 12.0% to 12.1%. Full-year comparable sales growth is still expected at 3% to 4%.

For Q3 FY2027, TJX guided for GAAP diluted EPS of $1.36 to $1.38 and adjusted diluted EPS of $1.30 to $1.32, with comparable sales expected to rise 2% to 3%. The company also disclosed it expects to receive additional IEEPA tariff refunds in Q3, though the precise amount remains uncertain.

Beyond near-term guidance, the company announced a strategic expansion of its store growth target: beginning in FY2028, TJX plans to accelerate store openings to a 4% annual growth rate and increased its long-term global store target by 500 stores to 7,500 total locations across existing retail banners and current countries. The company also reaffirmed plans to repurchase approximately $2.75 billion to $3.0 billion of TJX stock in FY2027.

Wall Street View

Analyst reaction heading into the print was broadly constructive, with the consensus skewed toward Buy-equivalent ratings. Some analysts flagged technical concerns and rated the stock a Hold despite the Q2 beat and guidance raise, citing the Marmaxx comparable sales miss as a point of caution. No specific new price targets from named analysts were available in the source data at the time of publication.

Investor Takeaway

The raised full-year EPS and pre-tax margin guidance, combined with the accelerated store growth plan targeting 7,500 locations, give TJX a concrete long-term expansion framework that extends well beyond any single quarter's results. The critical variable to monitor is whether the Marmaxx recovery that CEO Herrman described as underway in early Q3 is sustained through the fall and holiday season, since Marmaxx generated $9.1 billion of Q2 net sales and its 1% comparable sales growth materially lagged the 6% to 7% increases posted by every other segment. Shares fell 2.64% on Thursday, August 20, 2026, while the S&P 500 declined 0.84%.