Company: TJX
Filing Date: 2025-08-29
Form Type: 10-Q
Source: 0000109198-25-000054
Chunk: 101

Company: TJX COMPANIES INC /DE/
Filing Date: 2025-08-29
Form: 10-Q
Item: Part I, Item 2
Chunk 101
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) expense, net$(27)$(46)$(57)$(96)

Interest (income) expense, net decreased for both the second quarter of fiscal 2026 and first six months ended August 2, 2025 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 are not expected to have a material impact on the Company’s income tax provision and are expected 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 second 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 24.5% for the second quarter of fiscal 2026 and 25.1% for the second quarter of fiscal 2025. The effective income tax rate was 23.9% for the first six months of fiscal 2026 and 24.1% for the first six months of fiscal 2025. The decrease in the effective tax rate for both the second quarter and first six months of fiscal 2026 was primarily due to a benefit from the acquisition of federal tax credits, partially offset by the decrease in excess tax benefit from share-based compensation.

Net Income and Diluted Earnings Per Share

Net income was $1.2 billion, or $1.10 per diluted share, and $1.1 billion, or $0.96 per diluted share, for the second quarter of fiscal 2026 and fiscal 2025, respectively. Foreign currency had a $0.02 positive impact on diluted earnings per share for the second quarter of fiscal 2026 and a neutral impact on diluted earnings per share for the second quarter