Company: TJX
Filing Date: 2025-12-02
Form Type: 10-Q
Source: 0000109198-25-000061
Chunk: 79

Company: TJX COMPANIES INC /DE/
Filing Date: 2025-12-02
Form: 10-Q
Item: Part I, Item 8
Chunk 79
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 19.7% for the first nine months of fiscal 2026, an increase of 0.2 percentage points compared to 19.5% for the first nine months of fiscal 2025. The increase in the SG&A ratio for the first nine months of fiscal 2026 was due to incremental store wage and payroll costs and contributions to our charitable foundations.

Interest (Income) Expense, net 

The components of interest (income) expense, net are summarized below: Thirteen Weeks EndedThirty-Nine Weeks EndedIn millionsNovember 1,2025November 2,2024November 1,2025November 2,2024Interest expense$20 $20 $59 $59 Capitalized interest(1)— (4)(0)Interest (income)(47)(63)(140)(198)Interest (income) expense, net$(28)$(43)$(85)$(139)

Interest (income) expense, net decreased for both the third quarter and first nine months of fiscal 2026 compared to the same periods in fiscal 2025, primarily due to a decrease in interest income driven by a decrease in prevailing rates and a lower average cash balance.

Provision for Income Taxes

On July 4, 2025, the One Big Beautiful Bill Act was signed into law, making permanent certain expiring provisions of the Tax Cuts and Jobs Act, including 100% accelerated depreciation deductions on qualified property and immediate expensing of domestic research and development costs, as well as modifying some of the international tax rules. These changes have not had a material impact for either the third quarter or the first nine months of fiscal 2026 and are not expected to have a material impact on the Company’s income tax provision. We expect these changes to reduce the Company’s current year U.S. cash tax obligations.

A number of countries have enacted legislation to implement the Organization for Economic Cooperation and Development’s 15% global minimum tax regime (Pillar Two) with effect from January 1, 2024. These changes did not have a material impact on our effective tax rate, results of operations or financial position for the third quarter of fiscal 2026 and are not expected to have a significant impact to the full fiscal year. We continue to evaluate the impacts of proposed and enacted legislation for the jurisdictions in which TJX operates.

The effective income tax rate was 24.7% for the third quarter of fiscal 2026 and 25.3% for the third quarter