Why The TJX Companies Surged 27.2% Last Year and Has Kept Gaining in 2026

Core Insights - TJX Companies stock outperformed the broader retail industry, achieving a 27.2% increase in share price in 2025, compared to 16.4% for the S&P 500 and 20.4% for the Nasdaq Composite [1] - The company has consistently posted strong quarterly reports, indicating resilience amid retail sector pressures [2][4] - TJX's business model, which focuses on bulk purchasing of discounted name-brand goods, has allowed it to grow customer traffic and sales even during macroeconomic challenges [8] Financial Performance - In the third quarter of fiscal 2026, TJX reported earnings per share of $1.28 on revenue of $15.12 billion, surpassing analyst expectations of $1.22 per share on $14.85 billion in sales [5] - For the first three quarters of fiscal 2026, TJX recorded approximately $42.63 billion in revenue and earnings of $3.30 per share, compared to $40 billion in sales and $3.03 per share in the previous year [6] - The company achieved strong same-store sales growth, contributing to better-than-expected revenue and earnings growth, supported by gross margin gains and improved operating efficiency [6] Market Performance - TJX stock has continued to show strong performance in early 2026, with a year-to-date increase of 2.5%, outperforming the S&P 500's 1.4% and the Nasdaq Composite's 1.2% [7] - The stock is trading at approximately 34 times this year's expected earnings, reflecting investor confidence in the company's robust business model [8]