TJX Companies Inc (NYSE:TJX) reported a stronger-than-expected fourth quarter on Wednesday, driven by broad-based sales gains and improved margins, but issued a cautious outlook for fiscal 2027.

The company posted fourth-quarter revenue of $17.7 billion, up 9% from a year earlier and ahead of analysts’ estimates of $17.36 billion. Comparable store sales rose 5%, topping expectations of roughly 3.8%.

Adjusted earnings per share came in at $1.43, beating estimates of $1.39.

According to analysts at Jefferies, TJX delivered a “clear Q4 beat,” supported by broad-based sales strength, merchandise margin upside and lower-than-expected shrink. All divisions exceeded expectations, led by HomeGoods, where comparable sales rose 6%, and TJX Canada, up 7%.

Adjusted pretax margin was 12.2%, above expectations of about 11.9%, as gross margin improved to 31.1% and expenses leveraged on higher sales. Inventory ended the quarter up about 10% per store, which management described as clean and well positioned to capture spring demand.

Despite the strong finish to fiscal 2026, TJX forecast more moderate growth for fiscal 2027. The company projected full-year earnings per share of $4.93 to $5.02, below analysts’ expectations of $5.18. The company expects comparable sales growth of 2% to 3%, compared with estimates of about 3.5%, and a pretax margin of 11.7% to 11.8%, also below consensus.

For the first quarter, TJX guided for earnings per share of $0.97 to $0.99, short of expectations of $1.02, with comparable sales growth of 2% to 3%.

The company said it returned $4.3 billion to shareholders in fiscal 2026 and plans to repurchase $2.5 billion to $2.75 billion of stock in fiscal 2027. It also announced a new $3 billion share repurchase authorization and said it intends to raise its quarterly dividend by about 13% to $0.48 per share, underscoring confidence in its cash flow and balance sheet strength.

Shares gained about 1.7% in morning trading.