The TJX Companies Inc reported Q2 2025 revenue of $13.468 billion, down 17.93% year over year but up 7.93% quarter over quarter, reflecting softer demand versus the prior-year peak while showing QoQ momentum as promotional dynamics moderated. The company delivered a robust gross margin of 30.35% and strong operating profitability, with operating income of $1.422 billion and net income of $1.099 billion, translating to an EPS of $0.97 (diluted $0.96). Despite the top-line decline, TJX generated solid operating cash flow of $1.629 billion and free cash flow of $1.067 billion, ending the period with $5.25 billion in cash and cash equivalents and a net debt position of approximately $7.40 billion. Management continued to execute capital allocation initiatives, including a sizable share repurchase program (~$559 million) and a $423 million dividend, while capex remained disciplined at $563 million.
The balance sheet remains solid, with total assets of about $30.56 billion versus total liabilities of $22.77 billion and stockholders’ equity of roughly $7.78 billion. The company’s off-price model continues to support resilient cash generation and liquidity, even as revenue faces tougher year-over-year comparisons amid slower consumer spending. Investors should monitor traffic trends, inventory management, gross margin discipline, and international expansion progress (TK Maxx in Europe and Australia) for potential margin recovery and upside from international topline growth.