TJX Companies, Inc. (TJX) proved once again that bargain hunting never goes out of style. The off-price retail giant behind T.J. Maxx and Marshalls posted better-than-expected third-quarter results Thursday, sending shares up in premarket trading as investors digested a potent combination of sales growth, margin expansion and a beefier buyback program.

The company reported earnings per share of $1.28, topping the analyst consensus of $1.22. Revenue came in at $15.12 billion, up 7% year over year and comfortably ahead of Wall Street's $14.87 billion estimate.

Treasure Hunting Pays Off

What's particularly impressive is how broadly the strength played out. Marmaxx and HomeGoods grew U.S. sales by 7% and 8% respectively, while TJX Canada posted 8% growth and TJX International led the pack with 9% gains. Consolidated comparable sales climbed 5% for the quarter.

"We believe this is a testament to our value proposition and treasure-hunt shopping experience, which continue to draw consumers to our retail banners worldwide," said CEO Ernie Herrman.

The treasure-hunt comment isn't just marketing speak. In an environment where consumers are increasingly selective about spending, TJX's model of constantly rotating inventory at deep discounts keeps people coming back to see what's new. That's a powerful advantage over traditional retailers.

Margin Momentum

The profitability picture looked equally solid. Gross profit margin expanded to 32.6% from 31.6% a year ago, driven by higher merchandise margins and better expense leverage. Pretax profit margin hit 12.7% for the quarter.

Total inventories stood at $9.4 billion as of November 1, compared to $8.4 billion a year earlier. The company generated $1.5 billion in operating cash flow and ended the quarter with $4.6 billion in cash on the balance sheet.

Upgraded Outlook

Management sweetened the picture further by raising guidance. TJX now expects fiscal 2026 earnings of $4.63–$4.66 per share, up from its prior range of $4.52–$4.57 and ahead of the $4.60 analyst consensus. The company also bumped its full-year comparable sales growth forecast to 4%, up from 3% previously.

For the fourth quarter specifically, management is projecting comparable sales growth of 2% to 3% and reaffirmed its earnings guidance of $1.33–$1.36 per share, just below the $1.37 analyst estimate.

The company also announced plans to repurchase approximately $2.5 billion of stock during the fiscal year ending January 31, 2026, signaling confidence in the business trajectory.

Price Action: TJX shares were trading 1.25% higher at $147.40 Thursday morning.