Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Ross Stores delivered strong Q1 FY2026 growth, with revenue up 20.6% to $6.0B, diluted EPS up 37.4% to $2.02, and operating margin expanding to 13.4%, driven primarily by 17% comparable-store sales growth and lower cost of goods sold as a percentage of sales. Source: 10-Q Item 2 MD&A, pp.18-20.
Revenue
$6.01B
+20.57% YoY
EPS (Diluted)
$2.02
+37.41% YoY
Operating Income
$804.03M
+32.57% YoY
Source: SEC XBRL
Ross Stores (ROST) reported Q1 FY2026 revenue of $6.01B, up 20.6% year over year. Operating margin was 13.4%, up 1.2 points from 12.2% a year earlier. Operating cash flow was $836.01M, up 104.0% year over year. ROST's fiscal Q1 FY2026 corresponds to calendar Q2 2026.
Last 4 quarters: 3 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 2.02 | 1.76 | Beat +14.5% |
| Mar 2026 | 2.00 | 1.94 | Beat +3.0% |
| Dec 2025 | 1.58 | 1.44 | Beat +10.1% |
| Sep 2025 | 1.56 | 1.57 | Miss -0.4% |
Compiled by AI from 10-Q Item 2 of this filing
Sales increased approximately $1.026B, or 21%, to $6.010B. Management attributed $841M of the increase to 17% comparable-store sales growth and $185M to non-comparable-store sales; the comparable-store gain reflected approximately 11% traffic growth and 6% basket growth.
Source: 10-Q Item 2 MD&A
Cost of goods sold fell by approximately 145 basis points as a percentage of sales, primarily reflecting an 85-basis-point improvement in merchandise margin and 60 basis points of occupancy-cost leverage. Operating margin consequently rose to 13.4% from 12.2%, despite SG&A rising 25 basis points as a percentage of sales due mainly to higher incentive compensation.
Source: 10-Q Item 2 MD&A
Ross opened 17 stores in Q1 FY2026, ending the period with 2,282 locations: 1,917 Ross Dress for Less stores and 365 dd's DISCOUNTS stores. Management remains on track to open about 110 stores during fiscal 2026, including about 85 Ross and 25 dd's locations.
Source: 10-Q Item 2 MD&A
Operating cash flow increased to $836M from $410M, primarily due to higher net earnings, higher accounts-payable leverage, and higher incentive-compensation accruals. Accounts-payable leverage was 89% at May 2, 2026 versus 81% a year earlier, which management said was largely due to the timing of inventory receipts and related payments.
Source: 10-Q Item 2 MD&A
During Q1 FY2026, Ross repaid $500M of Senior Notes at maturity, repurchased 1.5 million shares for $318.7M excluding excise tax, and paid $143.6M in dividends. The Board also authorized a new two-year program in March 2026 allowing up to $2.55B of share repurchases through January 29, 2028.
Source: 10-Q Item 2 MD&A
Compiled by AI from this SEC filing · 0 high, 1 medium, 3 low
Cash and equivalents were $4.131B at period end, but net cash, cash equivalents, and restricted cash decreased by $463M during Q1 FY2026. Operating cash flow of $836M was more than offset by $209M of investing cash outflows and $1.090B of financing cash outflows, indicating that debt repayment, buybacks, dividends, and investment can reduce cash balances even in a profitable quarter.
Source: 10-Q Cash Flow Statement (XBRL)
Cost of revenue was $4.231B in Q1 FY2026, equal to approximately 70.4% of revenue. Although cost of revenue grew more slowly than revenue and supported margin expansion this quarter, the size of this expense category means changes in merchandise costs or retail execution could materially affect gross profit.
Source: 10-Q Income Statement (XBRL)
Ross used $318.8M for share buybacks in Q1 FY2026, up 21.4% year over year, while financing cash outflow totaled $1.090B. Continued shareholder distributions and debt-related cash uses require sustained operating cash generation to avoid drawing down liquidity.
Source: 10-Q Cash Flow Statement (XBRL)
Current liabilities rose 10.8% year over year to $4.915B, compared with a 10.2% increase in current assets to $7.573B. The reported current ratio remained healthy at 1.54x, but the relationship should be monitored because short-term obligations grew marginally faster than short-term assets.
Source: 10-Q Balance Sheet (XBRL)
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 6.01 $B | 4.98 $B | +20.57% |
Cost of Revenue $B | 4.23 $B | 3.58 $B | +18.13% |
Operating Income $M | 804.03 $M | 606.47 $M | +32.57% |
Net Income $M | 649.96 $M | 479.25 $M | +35.62% |
EPS (Basic) $ | 2.04 $ | 1.48 $ | +37.84% |
EPS (Diluted) $ | 2.02 $ | 1.47 $ | +37.41% |
SG&A Expense $M | 975.86 $M | 797.14 $M | +22.42% |
Answers draw on this SEC filing and the data on this page
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