TJX Stock Rockets 33%—Q1 Profits Smash $1B While Analysts Scratch Their Heads

Off-price retail giant TJX defies inflation fears with a billion-dollar quarter—proving once again that discount hunters win in any market. Wall Street ’experts’ left scrambling to justify their earlier bearish calls.

Not bad for a company that literally sells other brands’ leftovers. Maybe those MBA price targets need a clearance tag too.

TLDR

• TJX reports strong Q1 with $1 billion net income and 5 percent revenue growth to $13.1 billion
• Despite a 2.24 percent drop TJX stock is up 33 percent over the year with bullish analyst targets
• Gross margin declines slightly but full year earnings guidance remains intact amid tariff concerns
• Company expands to 5121 stores and expects 2 to 3 percent comp sales growth in the second quarter
• TJX returns $1 billion to shareholders through buybacks and dividends showing strong financial position

The TJX Companies, Inc. (TJX) shares have fluctuated moderately over the past five trading days, peaking NEAR $136.47 before experiencing a sharp drop. On May 16, the stock closed at $133.57, with relatively stable intraday movement. By May 21, the stock had declined to $131.91, down 2.24% on the day, reflecting negative market sentiment following recent events or earnings updates.

The TJX Companies, Inc. (TJX)

Q1 Earnings Beat Estimates, Sales Rise to $13.1B

The TJX Companies posted strong first-quarter results for Fiscal 2026, reporting net income of $1.0 billion. Revenue reached $13.1 billion, marking a 5% rise from last year’s quarter. The company’s diluted earnings per share stood at $0.92, slightly exceeding analysts’ expectations.

Comparable store sales increased 3%, demonstrating steady customer demand across all store divisions. Strong sales were driven by improved foot traffic and strategic inventory management.

$TJX | 𝐓𝐉𝐗 𝐐𝟏 𝐄𝐚𝐫𝐧𝐢𝐧𝐠𝐬 𝐑𝐞𝐩𝐨𝐫𝐭: Revenue: $13.11B (↑ 5% YoY) | GAAP EPS: $0.92 | Adjusted EPS: $0.92

👉 𝐁𝐮𝐬𝐢𝐧𝐞𝐬𝐬 𝐇𝐢𝐠𝐡𝐥𝐢𝐠𝐡𝐭𝐬:

➤ 𝐐𝟏 𝐜𝐨𝐧𝐬𝐨𝐥𝐢𝐝𝐚𝐭𝐞𝐝 𝐜𝐨𝐦𝐩 𝐬𝐚𝐥𝐞𝐬 𝐢𝐧𝐜𝐫𝐞𝐚𝐬𝐞𝐝 𝟑%, at the high end of plan

➤ 𝐏𝐫𝐞𝐭𝐚𝐱… pic.twitter.com/Z0RLZ5UTxE

— Hardik Shah (@AIStockSavvy) May 21, 2025

The company also noted solid growth in international segments and its HomeGoods division.

The company’s gross profit margin declined to 29.5% due to mark-to-market adjustments on inventory hedges. Selling and administrative costs ROSE slightly, impacting the pre-tax margin at 10.3%. Still, the earnings performance remained above internal projections, reinforcing the resilience of TJX’s off-price model.

Stock Up 33% Over 12 Months Amid Solid Performance

TJX shares have gained 33.44% year-over-year and are up 11.41% in the past three months. The stock recently closed at $134.93, supported by consistent earnings surprises and investor confidence. Despite a 2.24% drop to $131.91 on May 21, the long-term trajectory remains positive.

Analyst sentiment remains bullish, with UBS setting a $154 price target and TD Cowen raising theirs to $142. BMO Capital also maintained an Outperform rating, with a $145 target. These upgrades reflect the company’s strong fundamentals and market leadership.

However, 13 analysts revised earnings estimates downward over the past 90 days, signaling caution for future quarters. The stock remains in a favorable Zacks Rank #2 (Buy) category, driven by its earnings revision trend. The retail-discount store industry remains in the bottom 40% of the Zacks industry rank.

Outlook Points to Stable Growth Despite Margin Pressures

For the second quarter, TJX expects earnings per share between $0.97 and $1.00, with COMP sales projected to grow 2% to 3%. The company maintained its full-year EPS guidance of $4.34 to $4.43, despite forecasting margin pressures from tariffs. Tariffs on Chinese imports and unfavorable currency rates remain headwinds for Fiscal 2026.

TJX plans to offset these pressures through sourcing strategies and pricing initiatives. Operating cash FLOW for the quarter stood at $394 million, while total cash holdings reached $4.3 billion. The company also repurchased $613 million in shares and paid $420 million in dividends during the quarter.

The store count rose by 36 to 5,121 stores globally, expanding total square footage by 0.6%. Inventory per store grew 7% year-over-year, allowing fresh assortments for upcoming seasons. Management emphasized a strong start to Q2 and reaffirmed its commitment to long-term growth and shareholder returns.