Executive Summary
The TJX Companies delivered a solid top-line increase in QQ1 2026, with revenue totaling $13.11 billion, up 5.06% year-over-year, reflecting continued demand for off-price apparel and home fashions. Gross profit reached $3.865 billion, yielding a gross margin of approximately 29.48%, while operating income was $1.316 billion and net income $1.036 billion, translating to a net margin near 7.90% and EPS of $0.92. Notably, the quarter showed material sequential headwinds: QoQ revenue and profitability declined sharply (-19.81% in revenue, -22.37% in gross profit, -28.75% in operating income, and -25.89% in net income), underscoring seasonality and prior-quarter comp effects. Free cash flow was negative (-$103 million) as working capital movements and capital investment outweighed OTA cash generation in the period. The company finished the quarter with $4.255 billion of cash and cash equivalents, total debt of $13.062 billion, and net debt of $8.807 billion, directing capital toward stock repurchases of $613 million and cash dividends of $424 million. These dynamics reflect a resilient business model and solid liquidity, but also highlight near-term profitability pressures and working capital needs in QQ1 2026.
Key Performance Indicators
QoQ: -28.75% | YoY:-1.79%
QoQ: -25.89% | YoY:-3.18%
QoQ: -25.20% | YoY:-2.13%
Key Insights
Revenue: $13.11B; YoY +5.06%; QoQ -19.81% | Gross Profit: $3.865B; YoY +3.34%; QoQ -22.37% | Operating Income: $1.316B; YoY -1.79%; QoQ -28.75% | Net Income: $1.036B; YoY -3.18%; QoQ -25.89% | EPS: $0.92; YoY -2.13%; QoQ -25.20% | Gross Margin: 29.48%; Operating Margin: 10.04%; Net Margin: 7.90% | Operating Cash Flow: $0.394B | Capex: $0.497B | Free Cash Flow: -$0.103B | Cash and Equivalents: $4.255B | Total Debt: $13.062B | Net Debt: $8.807B | Change in Working Capital: -$0.979B...
Financial Highlights
Revenue: $13.11B; YoY +5.06%; QoQ -19.81% | Gross Profit: $3.865B; YoY +3.34%; QoQ -22.37% | Operating Income: $1.316B; YoY -1.79%; QoQ -28.75% | Net Income: $1.036B; YoY -3.18%; QoQ -25.89% | EPS: $0.92; YoY -2.13%; QoQ -25.20% | Gross Margin: 29.48%; Operating Margin: 10.04%; Net Margin: 7.90% | Operating Cash Flow: $0.394B | Capex: $0.497B | Free Cash Flow: -$0.103B | Cash and Equivalents: $4.255B | Total Debt: $13.062B | Net Debt: $8.807B | Change in Working Capital: -$0.979B
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
13.11B |
5.06% |
-19.81% |
| Gross Profit |
3.87B |
3.34% |
-22.37% |
| Operating Income |
1.32B |
-1.79% |
-28.75% |
| Net Income |
1.04B |
-3.18% |
-25.89% |
| EPS |
0.92 |
-2.13% |
-25.20% |
Management Commentary
Transcript data not provided in the supplied materials. No management quotes or thematic callouts are available to cite specific strategy, operations, or market-condition commentary.
Transcript data not available in the provided materials.
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Transcript data not available in the provided materials.
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Forward Guidance
No formal forward guidance was included in the provided materials. Outlook assessment relies on observed quarterly dynamics and sector characteristics. Key factors to monitor include: demand stability for off-price channels amid macro softness; promotional cadence and its impact on gross margins; international expansion progress (Europe, Canada, Australia) and the related margin mix; inventory discipline and working capital efficiency; ongoing capital allocation (dividends, buybacks) and its effect on leverage. Given a solid liquidity position and a historically disciplined cost structure, TJX is positioned to absorb near-term profit pressures while pursuing selective store expansion and e-commerce acceleration where viable.