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Research Alert: Ross Stores Q1 2026 Handily Beats Estimates; Raises Full-year Guidance

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CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

Ross Stores delivered exceptional Q1 2026 results with EPS of $2.02 (+37% Y/Y), $0.32 above consensus and well above the guidance range of $1.60-$1.67, and total sales of $6.01B (+21% Y/Y), $407M above estimates. Comparable store sales surged 17% versus flat performance in the prior year, driven by customer traffic growth and enhanced marketing initiatives. Operating margin expanded significantly 120 bps to 13.4%, well above the guided range of 11.8%-12.1%, demonstrating strong operational leverage from sales outperformance. Management raised fiscal 2026 guidance meaningfully, with comparable store sales now expected to grow 6%-7% and EPS guidance increased to $7.50-$7.74, representing 13%-17% growth versus $6.61 in the prior year. The company repurchased $319M in shares during the quarter and maintains $4.13B in cash. We believe the 5% share price reaction is warranted as the company is firing on all cylinders, with shares trading at 30x the high end of full-year EPS guidance.

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