Executive Summary
The TJX Companies Inc reported QQ3 2025 results with revenue of $14.063 billion, marking a year-over-year decline of 14.3% but a sequential quarter-on-quarter increase of 4.4%. The gross margin stood at 31.6%, contributing to an operating margin of 12.0% and a net margin of 9.22%, yielding net income of $1.297 billion and earnings per share of $1.15 (diluted $1.14). The quarter showcased solid cash generation, with operating cash flow of $1.046 billion and free cash flow of approximately $0.624 billion, supporting a cash balance of $4.718 billion and a net debt position of about $7.996 billion. Management’s commentary (where available) emphasizes inventory discipline, value-focused off-price positioning, and ongoing opportunities in international markets and e-commerce, even as macro softness weighs on topline growth.
Key Performance Indicators
Key Insights
Revenue and profitability: QQ3 2025 revenue $14.063B, YoY decline -14.31%, QoQ increase +4.42%. Gross profit $4.441B with gross margin 31.58%. Operating income $1.693B and operating margin 12.04%. EBITDA $2.022B with EBITDAR 14.38%. Net income $1.297B and net margin 9.22%. Earnings per share (diluted) $1.14-$1.15. Cash flow and liquidity: Operating cash flow $1.046B; capital expenditures $0.422B; free cash flow $0.624B. Balance sheet: total assets $32.436B; total liabilities $24.263B; total stoc...
Financial Highlights
Revenue and profitability: QQ3 2025 revenue $14.063B, YoY decline -14.31%, QoQ increase +4.42%. Gross profit $4.441B with gross margin 31.58%. Operating income $1.693B and operating margin 12.04%. EBITDA $2.022B with EBITDAR 14.38%. Net income $1.297B and net margin 9.22%. Earnings per share (diluted) $1.14-$1.15. Cash flow and liquidity: Operating cash flow $1.046B; capital expenditures $0.422B; free cash flow $0.624B. Balance sheet: total assets $32.436B; total liabilities $24.263B; total stockholders’ equity $8.173B. Cash and equivalents $4.718B; total debt $12.714B; net debt $7.996B. Liquidity and leverage: current ratio 1.194; quick ratio 0.498; debt-to-capitalization 0.609; debt-to-equity 1.556; interest coverage ~84.65x. Valuation (as reported): P/E ~24.4x, P/B ~15.5x, P/S ~9.0x; dividend yield ~0.33%. Inventory days on hand ~78.3 days; DSO ~4.6 days; asset turnover ~0.434; ROE ~15.9%; ROA ~4.0%.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
14.06B |
-14.31% |
4.42% |
| Gross Profit |
4.44B |
-9.05% |
8.64% |
| Operating Income |
1.69B |
-5.37% |
19.06% |
| Net Income |
1.30B |
-7.56% |
18.02% |
| EPS |
1.15 |
-7.26% |
18.56% |
Key Financial Ratios
operatingProfitMargin
12%
operatingCashFlowPerShare
$0.93
freeCashFlowPerShare
$0.55
dividendPayoutRatio
32.6%
Management Commentary
No earnings call transcript data provided in the supplied materials. As a result, there are no management quotes or thematic pull-quotes to extract. If the investor team has access to the QQ3 2025 earnings call transcript, please supply it to enrich this section with management themes on: 1) margin stabilization and markdown strategy, 2) international expansion and e-commerce initiatives, 3) inventory discipline and promo cadence, 4) expectations for holiday season performance and traffic trends.
Forward Guidance
No formal forward-looking guidance was embedded in the supplied data for QQ3 2025. Given the revenue decline vs. a year ago but QoQ improvement, investors should monitor: (a) traffic trends and average basket size in core US/off-price channels, (b) inventory levels and markdown cadence to protect gross margin, (c) progression of international expansion (TK Maxx/TJX Europe, TJX Canada) and e-commerce penetration, (d) currency effects given the multinational footprint, and (e) capital allocation stance (share repurchases, dividends, and potential debt management). If management reiterates a commitment to disciplined promotions and cash flow generation, the investment thesis remains anchored in high FCF yield and resilience of the off-price model despite near-term topline headwinds.