TJX US S&P 500Russell 1000 Earnings call
TJX Companies (TJX) · Q2 2026 results and valuation
Share price: $136.44 · 2026-11-11
Results Q2 2026 vs Q1 2026 · previous quarter · fiscal Q2 2027 · published 19 Aug 2026 and 20 May 2026
Net income up 14.1% on the previous quarter, guidance raised. Management sounded upbeat, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
+14.1%
Net income vs Q1 2026
Guidance raised
Net income 1.52B vs 1.33B
Revenue +6.0%
Against the same quarter last year (Q2 2025) it is +22.3%, so it is not just seasonal.
2 · How management spoke
Upbeat
More upbeat than 71% of company calls
Answers to analysts: restrained, in line with the script.
Similar to last call.
3 · What stood out
TJX plans to accelerate its store openings to 4% starting next year to take advantage of growth opportunities.
Valuation
Is TJX Companies undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2026-01-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 6.5% growth a year (3-year revenue growth), the model's fair value is $84.82 a share — the stock trades 61% above it. Today's price assumes 13.2% growth a year.
Current price
$136.44
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+13.2% for 10 yrs
Fair value / share
$84.82
Buy below
$63.62
Price vs fair value
Overvalued 61%
Price vs buy-below price
Overvalued 114%
Read between the lines
-
Rising
Pretax margin rose 50 basis points year over year and came in well above plan, while home categories outperformed apparel and gross margin increased 70 basis points.
Source quote
“Adjusted pretax profit margin was 11.9%, up 50 basis points versus last year and well above our plan. Further, our home categories out outperformed our apparel categories. Adjusted gross margin was 31.4%, up 70 basis points versus last year and driven by an increase in merchandise margin, mostly due to tariff favorability.”
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Guidance ↑
TJX raised its full-year outlook for pretax profit margin and earnings per share.
Source quote
“Given we are raising our full year outlook for pretax profit margin and earnings per share.”
-
Guidance
Net interest income is expected at $28 million, keeping third-quarter pretax profit margin flat versus last year.
Source quote
“Assuming net interest income of $28 million, which we expect will be neutral to our third quarter pretax profit margin versus last year.”
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Fading
Comp sales were driven equally by higher average baskets and more customer transactions, while pretax profit margin hit 12%, up 170 basis points and well above plan.
Source quote
“Further, we saw very strong comp sales increases in both our apparel and home categories. Our first quarter comp was driven equally by a higher average basket and an increase in customer transactions. Pretax profit margin was 12%, up 170 basis points and well above our plan.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“Further, we are planning to accelerate our store openings to 4% starting next year to take advantage of the growth opportunities we see out there.”
“In closing, want to reiterate that we are excited about the growth and market share opportunities we see in the near and long term.”
“We are seeing the opportunity as the store, as we have experienced strong comp growth for so many quarters that we are seeing the ability to put stores closer together...”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-08-01)
| Metric | Q2 2026period end 2026-08-01 | Q1 2026period end 2026-05-02 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 15.18B | 14.32B | +6.0% | 14.40B | +5.4% |
| Gross profit | 5.07B | 4.48B | +13.2% | 4.42B | +14.6% |
| Operating income | 2.02B | 1.72B | +17.3% | 1.65B | +22.5% |
| Net income | 1.52B | 1.33B | +14.1% | 1.24B | +22.3% |
| EPS | 1.36 | 1.19 | +14.3% | 1.10 | +23.6% |
| P/E today 24.9 | 29.1 | 30.5 | −1.4 | 28.7 | +0.4 |
Topics
Most discussed now
- New TJX Companies put some basically systematic processes in place.
- New TJX Companies is all again, remember, it is a bit of an art form secret sauce situation where things so rigid.
- TJX Companies has made good progress working through them.
- Comparable sales increased 4%, which was above TJX Companies' plan.
- A lot of the decorative and even some of the higher ticket areas are doing really, really well And I...
Faded since Q1 2026
- Fading Next is the in-store shopping experience and investing in TJX Companies' stores to its remodeling program and new prototypes.
- Fading TJX Companies is very excited about its growth plans in Spain and remain confident in the opportunities it sees to capture...
- Dropped The marketing team there has really worked on programs to do that in a very balanced manner given the size...
- Fading I am very pleased with the results TJX Companies has seen so far, and I'm confident that its marketing strategy will...
Latest announcements
Official filings, newest first.
- Director or officer change · SEC 8-K
- Results of operations · SEC 8-K
- Shareholder vote results · SEC 8-K
- Results of operations · SEC 8-K
- Results of operations · SEC 8-K
- Results of operations · SEC 8-K
- Results of operations · SEC 8-K
- Shareholder vote results · SEC 8-K