Here's a simple story: when people want to find a deal, they go to the place that sells deals. That place, for a lot of shoppers, is The TJX Companies (TJX). And on Wednesday, the off-price retailer showed just how well that story is playing out, reporting a quarter that topped expectations and sending its stock higher.

The company didn't just stop at good numbers; it also told shareholders it plans to send more cash their way. TJX flagged a significantly larger share buyback plan and outlined an upcoming dividend hike, pending the usual board approval.

The Numbers Behind the Treasure Hunt

For the fourth quarter, TJX reported adjusted earnings per share of $1.43, beating the analyst consensus estimate of $1.39. Sales came in at $17.74 billion, a 9% jump from a year ago that also outpaced the Street's view of $17.37 billion.

Perhaps more telling was the comparable sales growth—a key retail metric—which hit 5%. That wasn't just good; it "significantly" exceeded the company's own internal projections. The growth was broad-based: Marmaxx (its U.S. apparel and home business) saw sales gain 7%, HomeGoods in the U.S. rose 8%, TJX Canada gained 11%, and TJX International jumped 15%.

The company also managed to widen its profit margins in the process. The adjusted pretax profit margin landed at 12.2%, up 0.6 percentage points from a year ago and, again, above what TJX had expected.

"Throughout the year, we stayed focused on our off-price fundamentals to bring customers great values, brands, and fashions as well as an exciting treasure-hunt shopping experience every day," said Ernie Herrman, Chief Executive Officer and President of The TJX Companies.

Supporting that sales growth, total inventories stood at $7.3 billion as of January 31, 2026, up from $6.4 billion at the end of the previous fiscal year. The company exited the quarter with a hefty $6.230 billion in cash and equivalents.

One notable item in the quarter was a net pretax benefit of about $221 million from a credit-card interchange litigation settlement. This was partially offset by related one-time costs spread across cost of sales and SG&A expenses.

Looking Ahead and Returning Cash

For all the strength in the rearview mirror, TJX's look ahead was a bit more measured. For the first quarter, the company expects GAAP earnings per share of 97 cents to 99 cents, compared with analyst estimates of $1.02. For the full fiscal year 2027, it sees GAAP EPS in the range of $4.93 to $5.02, below the current Street view of $5.17.

The company is planning for consolidated comparable sales to be up 2% to 3% for the full year, with a pretax profit margin in the range of 11.7% to 11.8%.

Where the company is showing more confidence is in its commitment to shareholders. TJX announced its intention to increase the regular quarterly dividend on its common stock to 48 cents per share, subject to board approval. This expected dividend, slated for declaration in March 2026, would represent a 13% increase. Furthermore, the company plans to repurchase approximately $2.50 to $2.75 billion of its own stock during the current fiscal year.

In response to the report, TJX Companies shares were up 0.84% at $158.98, trading near its 52-week high.