TJX Companies Report Impressive Earnings and Subsequent Price Hike
The TJX Companies, Inc. (NYSE:TJX) has reported its fiscal Q2 2026 earnings on August 20th, 2026, showcasing growth and solid execution of management's objectives.
The retail giant, known for its brands such as TJ Maxx, Marmaxx, HomeGoods, and TJX Canada, among others, has seen a significant increase in comparable sales. Marmaxx and HomeGoods registered growth of 3% and 5% respectively, while TJX Canada and TJX International saw growth of 9% and 5% respectively.
The strong performance is reflected in the stock's trading price, which is currently trading for a higher premium than it was 12-months ago, approximately 36%.
The company's earnings per share for Q2 2026 stood at $1.10, beating analyst estimates of $1.01. Revenue for the quarter also surpassed expectations, coming in at $14.4B.
TJX's dividend payout for 2025 is expected to be $1.65, marking a 13.2% year-over-year increase from the 2024 dividend payout. However, the 10-year dividend CAGR has decreased from 15.8% to 15.1%. The payout ratio has also moved higher, rising from 33.9% to 35%.
In Q2 2026, TJX returned $1B to its shareholders, with $515M in buybacks and $474M through dividends.
The earnings report indicates a promising outlook for the company. TJX has provided positive guidance for Q3 2026, projecting 3-4% growth in earnings per share and 2-3% in comparable sales. Fiscal 2026 guidance was raised by roughly 6% based on Q3 projections.
The long-term expected rate of return for the stock is 3.57%, consisting of a 1.26% dividend yield, a -6.34% return to fair value factor, and 8.65% projected earnings growth. If the additional inventory expenditure is back-out, the valuation improves to a potential 7% premium with a new implied fair price of $126. With the adjusted model, the long-term expected rate of return for the stock increases to 8.55%.
Despite the strong performance and positive outlook, the TJX Companies, Inc. stock is still trading for a premium and deserves a Hold rating at best. The company continues to show resilience in a tough macro backdrop, with a growing revenue stream, healthy margins, and a strong return on invested capital.
The current Chief Executive Officer of TJX Companies, Inc. is Ernie Herrman, who has held the position since 2016 and remains in that role as of the latest stock market analysis in 2025.
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