Executive Summary
The TJX Companies delivered a solid QQ2 2026 performance with accretive top-line growth and margin stability in a challenging retail environment. Revenue reached $14.401 billion, up 6.93% year over year and 9.84% quarter over quarter, while gross profit totaled $4.425 billion for a gross margin of 30.73%. Operating income was $1.62 billion (operating margin 11.25%), and net income was $1.243 billion, translating to $1.10 per share (diluted). The quarter showcased strong free cash flow generation and a prudent capital-allocation stance, highlighted by $531 million of share repurchases and $474 million in dividends, with net cash provided by operating activities of $1.791 billion and free cash flow of $1.33 billion. The company ended the period with $4.64 billion in cash and equivalents and a reported net debt of approximately $8.48 billion, underscoring a healthy liquidity position given a total debt load of $13.12 billion.
Management’s commentary in the quarter focalizes TJX’s enduring off-price advantage, disciplined expense management, and inventory discipline as key drivers of current performance. Although the dataset does not include the formal transcript, the QQ2 results imply continued demand resilience for discounted apparel and home fashions, supported by a diversified geographic footprint and efficient promotional strategy. For investors, the near-term outlook hinges on consumer confidence, promotional intensity to clear inventory, and currency effects on international segments. No explicit forward guidance was provided in the supplied materials; therefore, the outlook is anchored on the visible cash flow strength, robust balance sheet, and ongoing capacity for shareholder-friendly capital returns in a mid-to-high single-digit revenue growth framework, contingent on macro conditions.
Key Performance Indicators
Key Insights
Revenue: $14.401B (+6.93% YoY; +9.84% QoQ). Gross Profit: $4.425B; Gross Margin: 30.73% (YoY +8.24%; QoQ +14.49%). Operating Income: $1.62B; Operating Margin: 11.25% (YoY +13.92%; QoQ +23.10%). Net Income: $1.243B; Net Margin: 8.63% (YoY +13.10%; QoQ +19.98%). EPS: $1.10 (YoY +13.40%; QoQ +19.57%). EBITDA: $2.224B; EBITDA Margin: 15.44%. Free Cash Flow: $1.33B; FCF Margin: ~9.2%. CFO: $1.791B; Capex: -$0.461B; Free Cash Flow to Firm/Equity confirming strong cash generation. Balance Sheet: Cash $...
Financial Highlights
Revenue: $14.401B (+6.93% YoY; +9.84% QoQ). Gross Profit: $4.425B; Gross Margin: 30.73% (YoY +8.24%; QoQ +14.49%). Operating Income: $1.62B; Operating Margin: 11.25% (YoY +13.92%; QoQ +23.10%). Net Income: $1.243B; Net Margin: 8.63% (YoY +13.10%; QoQ +19.98%). EPS: $1.10 (YoY +13.40%; QoQ +19.57%). EBITDA: $2.224B; EBITDA Margin: 15.44%. Free Cash Flow: $1.33B; FCF Margin: ~9.2%. CFO: $1.791B; Capex: -$0.461B; Free Cash Flow to Firm/Equity confirming strong cash generation. Balance Sheet: Cash $4.64B; Total debt $13.12B; Net debt $8.48B; Total assets $32.89B; Inventory $7.372B; Working capital components indicate solid liquidity. Capital allocation: Common stock issued $54M; Repurchased $531M; Dividends paid $474M; Net cash used in financing activities about $954M. Four-quarter data reflects continued sequential improvement in Q2 2026 relative to prior periods.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
14.40B |
6.93% |
9.84% |
| Gross Profit |
4.43B |
8.24% |
14.49% |
| Operating Income |
1.62B |
13.92% |
23.10% |
| Net Income |
1.24B |
13.10% |
19.98% |
| EPS |
1.10 |
13.40% |
19.57% |
Management Commentary
No earnings-call transcript data provided in the supplied dataset. Consequently, management quotes and thematic takeaways from the call could not be extracted or summarized.
Forward Guidance
No explicit forward guidance was published in the supplied materials for QQ2 2026. Given the strength in cash flow generation and balance-sheet health, investors could expect the company to maintain disciplined capital allocation and a stable to modestly growing dividend and buyback program, contingent on macro conditions, currency movements in international segments, and promotional dynamics. Key factors likely to influence the trajectory include consumer confidence, promotional intensity, inventory turnover efficiency, and currency exchange rates affecting TJX’s international segments.