Ross Stores, Inc. · ROST · FY2026 Q2 · Calendar Q3 2026

Ross Stores raises outlook as Q2 comps grow 10%

The quarter supports a constructive operating picture: demand broadened, comparable sales remained strong, and management raised its outlook. The main qualification is that part of the margin benefit came from tariff refunds, while freight costs and the durability of traffic gains remain open questions.

Why did ROST rise 4.4% after beating EPS estimates in FY2026 Q2?

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Reported After market closeNASDAQConsumer Cyclical $72.69B market cap
100quality score

Earnings scorecard

Reported versus consensus
Reported EPS $2.66 Consensus $1.95
EPS surprise +36.4% Reported versus consensus
Reported revenue $6.26B Consensus $6.16B
Revenue surprise +1.7% Reported versus consensus

Market reaction

event-close to next-session close
Stock move +4.4% Event window
SPY move +0.4% Same window
Abnormal move +4.0% Stock minus SPY
Volume 2.8× Versus trailing sessions
Subsequent drift -5.2% Up to 20 sessions
ROSTSPY benchmark

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Why did ROST rise 4.4% after beating EPS estimates in FY2026 Q2?What changed in ROST's guidance and outlook in FY2026 Q2?Give me the bull and bear case for ROST after FY2026 Q2 earnings.

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Transcript intelligence

What changed

Compared with the prior quarter, comparable-store sales remained in double digits, full-year EPS guidance moved to $8.61-$8.77, and the 2026 store-opening plan increased to 115 locations. Management also emphasized lapsed-customer recapture, inventory flexibility, and AI integration.

Guidance delta

Management raised full-year EPS guidance to $8.61-$8.77 and increased the 2026 store-opening plan to 115 locations.

Key takeaways

  • Q2 comparable-store sales grew 10% and total sales grew 13%.
  • Customer growth reflected new shoppers, recaptured lapsed shoppers, and higher visit frequency.
  • Home goods and cosmetics were highlighted among strong categories.
  • Tariff refunds and better merchandise margins supported operating-margin improvement despite higher freight costs.

Management priorities

  • Open 115 new stores in 2026, including 51 in Q3.
  • Use test-and-learn merchandising, store, and marketing initiatives.
  • Integrate AI into planning, allocation, and analytics.
  • Maintain inventory flexibility and increase marketing in line with sales growth.

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Earnings History

Estimate Beat Miss Match
ROST EPS earnings history estimate and actual scatter chart 9 reported fiscal quarters and 3 future estimate-only quarters. Q4 '24 estimate $1.65 Q4 '24 actual $1.82, beat Q1 '25 estimate $1.35 Q1 '25 actual $1.46, beat Q2 '25 estimate $1.50 Q2 '25 actual $1.59, beat Q2 '26 estimate $1.53 Q2 '26 actual $1.56, beat Q3 '26 estimate $1.42 Q3 '26 actual $1.58, beat Q4 '26 estimate $1.90 Q4 '26 actual $2.00, beat Q1 '27 estimate $1.73 Q1 '27 actual $2.02, beat Q2 '27 estimate $1.95 Q2 '27 actual $2.66, beat Q3 '27 estimate $1.85 Q4 '27 estimate $2.14 Q1 '28 estimate $2.10
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Analyst Consensus ?

ConsensusBuy47 ratings
Bullish3166.0%
Neutral1225.5%
Bearish48.5%

Analyst 52W Price Targets

$233.03Current
$106Low
$205.49Average
$315High

Latest persisted target per named analyst; persisted current price from FN2's market snapshot as of Nov 6, 2026. Not an FN2 forecast.

Firm-level rating actions

FMP grade actions identify the grading firm, not a named analyst.

FirmRatingPrior ratingActionDate
B of A Securities Buy BuyMaintainOct 27, 2026
UBS Buy NeutralUpgradeOct 26, 2026
Wells Fargo Equal Weight Equal WeightMaintainAug 21, 2026
Truist Securities Buy BuyMaintainAug 21, 2026
Morgan Stanley Equal Weight Equal WeightMaintainAug 21, 2026
Show 42 more rating actions

Named analyst price targets

Upside is calculated against the persisted current price $233.03. FMP does not supply a rating on these named-analyst rows.

FirmAnalyst52W targetPrice when postedUpsideDate
UBSJay Sole$315$229.3 +35.2%Oct 26, 2026
Wolfe ResearchAnalyst unavailable$279$234.18 +19.7%Oct 21, 2026
Deutsche BankAnalyst unavailable$294$240.15 +26.2%Aug 21, 2026
JefferiesAnalyst unavailable$285$238.34 +22.3%Aug 21, 2026
Evercore ISIAnalyst unavailable$290$238.82 +24.4%Aug 21, 2026
See 100 more

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Company context

Snapshot as of publication

Ross Stores, Inc., through its various subsidiaries, manages a chain of off-price retail establishments focusing on apparel and home goods. These stores operate under two main brand names: Ross Dress for Less and dd's DISCOUNTS. Their product selection primarily includes clothing, accessories, footwear, and household decor. The Ross Dress for Less outlets primarily serve middle-income households, offering merchandise at prices considerably lower than traditional department and specialty stores. Conversely, dd's DISCOUNTS stores cater to moderate-income households, providing products at prices below those typically found in department and discount stores. As of July 5, 2022, the company had approximately 1,950 stores operating across 40 states, the District of Columbia, and Guam. Ross Stores, Inc. was founded in 1957 and is based in Dublin, California.

Historical context

All ROST earnings
+8.1%FY2026 Q1 · Calendar Q2 2026+8.0%FY2026 Q4 · Calendar Q1 2026+8.4%FY2025 Q3 · Calendar Q4 2025

Consumer Cyclical peers this season

Latest reports in the same sector
CompanyQuarterEPS surpriseMarket moveHeadline
ABNB Airbnb, Inc. FY2026 Q3 · Calendar Q4 2026 +10.9% -3.5% Airbnb raises 2026 outlook as hotels and AI broaden growth
WYNN Wynn Resorts, Limited FY2026 Q3 · Calendar Q4 2026 -37.1% -3.7% Wynn’s Q3 shows operating resilience, with execution risks still in view

Latest beats and misses

Who reports next

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Sources

  1. Earnings call transcript and parsed analysis · 2026-08-20T22:19:15.822526+00:00
  2. FN2 earnings calendar · 2026-09-21T01:23:13.071796+00:00
  3. Polygon adjusted daily market bars · 2026-09-21T10:30:52.210260+00:00
  4. Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-09-21T10:30:52.207638+00:00

Methodology

Reported and consensus figures come from FN2's earnings event records. Market reaction and volume are calculated from daily adjusted bars around the event; abnormal move subtracts the SPY move over the same window.

Analyst target low, average, and high values are derived at request time from each named analyst's latest persisted FMP target. The current-price marker comes from FN2's persisted market snapshot. They are sell-side estimates, not an FN2 valuation or recommendation.

Transcript intelligence is a structured synthesis of the current and prior earnings-call analyses. Missing values stay missing and are never estimated.

By FN2 Research · Updated · As of 2026-09-21. For educational purposes only; not investment advice.