Ross Stores Surges 8% After Record Q2 Sales and Raised Full-Year EPS Outlook

Ross Stores posted a blowout second quarter for fiscal 2026, reporting sales of $6.3 billion, up 13% from $5.5 billion a year earlier, with comparable sales growth of roughly 10% and net income nearly doubling year-over-year. The quarter ended August 1 was driven by strong customer traffic gains and improved merchandising, and the company raised its full-year earnings per share guidance while projecting third-quarter sales growth above analyst expectations. Shares surged roughly 8-9% in premarket trading, reaching around $246.60, before closing the session up approximately 5%.

A wave of analyst price target increases followed, with Barclays lifting its target to $298 from $260, Evercore ISI to $290 from $276, Jefferies to $285 from $265, JP Morgan to $272 from $262, and Bernstein to $240 from $230. UBS also raised its target, citing tariff refunds alongside strong sales, and Citi lifted its target on the back of sales growth momentum. The results stood in contrast to a recent miss at TJX's Marmaxx division and reinforced the case that bargain-hunting demand remains resilient despite an uncertain economic backdrop, with management noting that many of its traffic-driving initiatives are still early in their rollout.