Executive Summary
The TJX Companies reported a robust Q4 2025, underscoring the resilience of the off‑price apparel and home fashions model in a complex macro environment. Revenue for the quarter stood at USD 16.35 billion, up 31% year over year and 16% quarter over quarter, supported by persistent demand for value-focused shopping and strong inventory execution. Gross margin was 30.45% (gross profit USD 4.98B), with operating margin near 11.3% and net margin around 8.55%, translating into net income of USD 1.40 billion and an EPS of USD 1.23. Cash generation remained a key strength: operating cash flow USD 2.704 billion and free cash flow USD 2.19 billion, enabling meaningful capital allocation including USD 0.852 billion in share repurchases and USD 0.422 billion in cash dividends. The balance sheet remains liquidity‑rich with USD 5.34 billion in cash and equivalents and total debt of USD 12.78 billion; however, net debt stood at USD 7.44 billion, implying a net debt to EBITDA around the mid‑3x range given reported EBITDA of USD 2.215 billion for the quarter. Inventory turnover and days of inventory on hand (~1.77x and ~50.8 days, respectively) reflect ongoing inventory discipline amid promotional activity. Management commentary—where disclosed—emphasized ongoing focus on value-driven assortment, store productivity, and cost controls to sustain margin discipline. While formal forward guidance was not provided in the material, the company’s trajectory points to continued strength in core North American off‑price channels with incremental international expansion and e‑commerce initiatives as meaningful long‑term growth vectors.
Key Performance Indicators
Key Insights
Revenue (Q4 2025): USD 16.35B; YoY growth: 31.0%; QoQ growth: 16.3%
Gross Profit: USD 4.979B; Gross margin 30.45%; YoY gross profit growth 33.34%; QoQ 12.11%
Operating Income: USD 1.847B; Operating margin 11.30%; YoY growth 38.56%; QoQ 9.10%
Net Income: USD 1.399B; Net margin 8.55%; YoY growth 30.65%; QoQ 7.79%
Earnings Per Share (diluted): USD 1.23; YoY EPS growth 29.47%; QoQ growth 6.96%
Cash Flow: Operating cash flow USD 2.704B; Free cash flow USD 2.19B; Capex USD (0.514)B; FCF per share...
Financial Highlights
Revenue (Q4 2025): USD 16.35B; YoY growth: 31.0%; QoQ growth: 16.3%
Gross Profit: USD 4.979B; Gross margin 30.45%; YoY gross profit growth 33.34%; QoQ 12.11%
Operating Income: USD 1.847B; Operating margin 11.30%; YoY growth 38.56%; QoQ 9.10%
Net Income: USD 1.399B; Net margin 8.55%; YoY growth 30.65%; QoQ 7.79%
Earnings Per Share (diluted): USD 1.23; YoY EPS growth 29.47%; QoQ growth 6.96%
Cash Flow: Operating cash flow USD 2.704B; Free cash flow USD 2.19B; Capex USD (0.514)B; FCF per share USD 1.92
Balance Sheet: Cash and cash equivalents USD 5.335B; Total debt USD 12.778B; Net debt USD 7.443B; Current ratio 1.18; Quick ratio 0.60; Inventory USD 6.421B; Total assets USD 31.749B; Total equity USD 8.393B
Key liquidity and capital allocation: Dividends USD 0.422B; share repurchases USD 0.852B; cash at end of period USD 5.335B; Net debt to EBITDA approximated around 3.36x (given trailing EBITDA USD ~2.215B for the quarter)
Valuation and efficiency: P/E 25.40x; P/B 16.92x; P/S 8.69x; Dividend yield ~0.30%; Inventory turnover ~1.77x; Days of inventory ~50.8; Receivables turnover ~26.46x; Payables turnover ~2.67x; Operating cash flow to sales ~16.5%
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
16.35B |
31.02% |
16.26% |
| Gross Profit |
4.98B |
33.34% |
12.11% |
| Operating Income |
1.85B |
38.56% |
9.10% |
| Net Income |
1.40B |
30.65% |
7.79% |
| EPS |
1.23 |
29.47% |
6.96% |
Key Financial Ratios
operatingProfitMargin
11.3%
operatingCashFlowPerShare
$2.38
freeCashFlowPerShare
$1.92
dividendPayoutRatio
30.2%
Management Commentary
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Forward Guidance
The materials provided do not include formal forward-looking guidance. From the disclosed results, TJX appears to maintain a disciplined financial stance, emphasizing strong cash flow generation and balance sheet flexibility. Expected near‑term drivers include:
- Continued growth in core North American off‑price channels (Marshalls, TJX Canada, HomeGoods, and TJX International) supported by value-driven assortments.
- Incremental international expansion via TK Maxx and Homesense in Europe and Australia, which historically offer higher long-run ROIC when scaled, subject to FX and macro headwinds.
- Ongoing cost control, inventory discipline, and promotional efficiency to preserve gross and operating margins in a promotional selling environment.
- E‑commerce and omnichannel enhancements to improve access and channel mix, potentially offsetting physical store density constraints.
Key factors investors should monitor include: (1) gross margin trajectory amid input costs and promotional intensity, (2) the pace and profitability of international expansion, (3) working capital dynamics given seasonal and promotional timing, and (4) evidence of sustained free cash flow generation that supports capital return programs.