Walmart vs. TJX: Retail Earnings Roundup Q4 2026

Walmart (WMT) posted Q4 2026 constant currency revenue growth of 4.9%, while adjusted operating income expanded 10.5%, more than double the top-line rate. TJX Companies (TJX) reported Q4 net sales of $17.7 billion, up 9% year over year, with comparable store sales advancing 5% on top of a 5% comp increase in the year-ago quarter. The two results frame a contrast that has sharpened over several earnings cycles: Walmart expanding margins by layering advertising and membership income onto its retail base, TJX doing so through off-price procurement scale and vendor access.

Walmart: Advertising and Membership Reshape the P&L

Walmart global advertising revenue reached $6.4 billion for the fiscal year, up 37%. Walmart Connect US accelerated further, posting 41% growth. Membership fees exceeded $4.3 billion. Taken together, advertising income and membership fees represented nearly one-third of Walmart's operating income in Q4.

Those two revenue streams carry higher margins than merchandise sales and expand without a proportional increase in inventory or labor cost. The gap between 10.5% adjusted operating income growth and 4.9% revenue growth in Q4 reflects, in part, the mix shift toward these higher-margin alternative income lines. Advertising in particular scales on the back of Walmart's customer data and supplier relationships, giving the company leverage that a pure-play retailer cannot replicate.

Sparky, Automation, and Delivery Speed

Walmart's AI assistant Sparky provides an early data point on platform monetization. Customers who used Sparky averaged order values 35% higher than non-Sparky customers, a gap that suggests the assistant is influencing basket composition and product discovery rather than simply answering service questions. Fast delivery customers, defined as those receiving orders in under three hours, grew more than 60% for the full fiscal year. Global e-commerce grew 24%, with Walmart US reaching 27%.

Infrastructure investment underpins both figures. About 60% of Walmart US stores now receive freight from automated distribution centers, and 50% of e-commerce fulfillment runs through automated facilities. The automation buildout compresses per-unit fulfillment costs as order volume scales, creating a flywheel in which faster delivery attracts more customers while automation holds cost growth below revenue growth. That dynamic is central to the operating income leverage thesis in the fiscal 2027 outlook.

For a full breakdown of Walmart's Q4 results, the [Beta Finch WMT Q4 2026 earnings episode](/podcasts/WMT_Q4_2026) covers the transcript analysis in detail.

TJX: Off-Price Scale and the Vendor Network

TJX Companies crossed $60 billion in annual net sales for the first time, reaching $60.4 billion in fiscal 2026. The Q4 result of $17.7 billion carried a 5% comparable store sales increase, stacked directly on a 5% comp in the prior year quarter. Adjusted EPS came in at $1.43, up 16% from $1.23 in the year-ago period.

Divisional performance was broad across formats and geographies. Marmaxx, the company's largest segment comprising T.J. Maxx and Marshalls, grew 4% to $36.6 billion in annual sales. HomeGoods surpassed $10 billion in annual sales with a 5% comp increase. TJX Canada posted 7% comp growth in Q4, the strongest geographic result in the quarter and a signal that the off-price value proposition travels across retail environments with different competitive dynamics.

Merchandise Margins and the Procurement Advantage

Adjusted gross margin expanded 60 basis points to 31.1% in Q4, driven by higher merchandise margins. The company attributed part of the improvement to shrink normalization, a cost headwind that has eased across the off-price sector as retailers tightened operational controls. The broader margin story, however, runs through sourcing rather than shrink alone.

TJX operates with a network of 21,000 vendors and 1,400 buyers. That scale enables the company to act on opportunistic procurement when brand owners carry excess inventory or face production overruns. The depth of buyer coverage means TJX can move quickly across categories, geographies, and price points in ways that smaller off-price operators cannot match. The Q4 gross margin trajectory suggests those sourcing conditions remained favorable through the quarter.

The [Beta Finch TJX Q4 2026 earnings episode](/podcasts/TJX_Q4_2026) covers the divisional detail and management commentary on vendor availability and merchandise margin drivers.

Guidance and Capital Deployment

Walmart projects constant currency sales growth of 3.5% to 4.5% for fiscal 2027, with adjusted operating income growth guided at 6% to 8%, maintaining the pattern of operating leverage above the revenue line. The company also announced a $30 billion share repurchase program, its largest ever, signaling confidence in free cash flow generation at the current scale of the business.

TJX is directing capital toward physical store expansion. The company plans to add 146 net new stores in fiscal 2027, including its first five locations in Spain. The long-term global store target stands at 7,000, implying a multi-year runway for unit growth relative to the current footprint. The Spain entry marks TJX's first move into the Iberian market, extending the off-price format into a new consumer base. Additional context on retail sector earnings trends is available on the [Beta Finch retail sector page](/groups/retail).

Two Models, Two Structural Questions

For Walmart, the central question is whether advertising and membership income continue compounding at current rates as the platform reaches greater scale. The Q4 data shows alternative revenue streams growing considerably faster than core retail: advertising up 37% globally, Walmart Connect US at 41%, and membership fees above $4.3 billion. The fiscal 2027 operating income guide of 6% to 8% against a 3.5% to 4.5% sales guide implies the company expects that dynamic to persist. The Sparky data adds a further dimension, with the 35% order value gap between AI-assisted and non-assisted customers pointing toward a platform monetization layer that extends beyond advertising and subscription.

For TJX, the question is whether a 7,000-store global target holds its unit economics as the company expands into geographies where vendor relationships and consumer awareness are less established than in North America. The back-to-back 5% comps and 60-basis-point gross margin expansion in Q4 indicate the core model remains productive at current scale. Entering Spain introduces new variables: different wholesale market structure, fresh retail competitive dynamics, and a buyer network that will take time to develop to North American depth. How merchandise margins behave in new markets over the next several fiscal years will be a key indicator of whether the long-term store target carries the same economics as the existing base.

Q4 2026 Key Metrics at a Glance

• WMT Q4 constant currency revenue growth: 4.9%; adjusted operating income growth: 10.5%
• WMT global advertising revenue: $6.4 billion (+37%); Walmart Connect US advertising: +41%
• WMT membership fees: $4.3 billion+; advertising and membership combined near one-third of Q4 operating income
• WMT Sparky customers: 35% higher average order value vs. non-Sparky customers
• WMT fast delivery customer growth: 60%+ for the full fiscal year; US e-commerce: +27%; global: +24%
• WMT fiscal 2027 guide: sales +3.5% to +4.5% constant currency; operating income +6% to +8%; $30 billion buyback announced
• TJX Q4 net sales: $17.7 billion (+9%); comparable store sales: +5% on a prior-year +5% comp
• TJX Q4 adjusted EPS: $1.43, up 16% from $1.23
• TJX full-year net sales: $60.4 billion (first time above $60 billion); Marmaxx $36.6 billion; HomeGoods above $10 billion
• TJX Q4 adjusted gross margin: 31.1% (+60 bps); TJX Canada Q4 comp: +7%
• TJX fiscal 2027 store plan: 146 net new stores including first five in Spain; long-term global target: 7,000 stores