Ross Stores Inc
Q3 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +4.76%.
Did ROST Beat Earnings? Q3 2026 Results
Ross Stores posted a blowout third quarter, reporting diluted EPS of $1.58 against a consensus estimate of $1.42, a beat of 10.90%, even as tariff-related costs trimmed roughly $0.05 per share from the result. Revenue climbed 10.4% year over year to $5.60 billion, clearing the $5.41 billion estimate by 3.53%, powered by a 7% comparable store sales increase that CEO Jim Conroy attributed to an exceptional back-to-school season and a new marketing campaign that visibly lifted customer engagement. Operating margin reached 11.6%, described by management as "much stronger than expected," reflecting disciplined expense control layered on top of the top-line surge — a contrast worth noting for investors watching <a href="https://247wallst.com/investing/2026/03/03/margins-crack-at-autozone-investors-react-swiftly/">margin pressure elsewhere in retail</a>. Looking ahead, Ross raised full-year fiscal 2025 EPS guidance to $6.38–$6.46, absorbing approximately $0.16 per share in tariff costs, while fourth-quarter EPS is projected at $1.77–$1.85 on comparable sales growth of 3%–4%. Multiple analysts raised their price targets following the report.
- Comparable store sales increased 7% in Q3
- Total sales grew 10% year-over-year to $5.6 billion
- Operating margin of 11.6%, much stronger than expected
- Excellent back-to-school season with strong trends continuing through balance of quarter
- Broad-based sales growth across merchandise areas and geographical regions
- New marketing campaign drove excitement and higher customer engagement
- Continued focus on expense control
“We are pleased with our third quarter sales results, which accelerated from the prior quarter. Our merchandise assortment of compelling brand name values resonated with shoppers, and our new marketing campaign drove excitement and higher customer engagement. We had an excellent back-to-school season with strong trends that continued through the balance of the quarter. The strong execution by the entire team led to broad-based sales growth across merchandise areas and geographical regions. The strength in top-line, coupled with our continued focus on expense control, resulted in an operating margin of 11.6% that was much stronger than expected.”
Ross Stores CEO, on the earnings call
Forward Guidance & Outlook
Ross Stores raised its full-year fiscal 2025 EPS guidance to $6.38–$6.46, including approximately $0.16 per share of tariff-related cost headwinds. For Q4 (13 weeks ending January 31, 2026), comparable store sales are forecast to increase 3%–4% with EPS in the range of $1.77–$1.85. The Q4 guidance includes approximately $0.03 per share of unfavorable packaway-related expense timing that benefited Q3, while tariff-related costs are expected to be negligible. Management noted that the prior-year Q4 and full-year EPS included approximately $0.14 per share benefit from the sale of a packaway facility.
ROST YoY Financials
Figures from SEC filings and company reports. Not investment advice.