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.