Next (LSE:NXT) EBIT: £1,290 Mil (TTM As of Jan. 2026)


LSE:NXT Next PLC LSE:NXT
90 GF Score
Price £146.55
GF Value £122.95
Valuation Modestly Overvalued
! 2 Warning Signs
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What is Next EBIT?

Next LSE:NXT +2.27% 90 EBIT is £1,290 Mil as of Jan. 2026. GuruFocus rates LSE:NXT with a GF Score™ of 90/100 and a GF Value™ of £122.95 (Modestly Overvalued). The stock has 2 warning signs investors should review.

Next's earnings before interest and taxes (EBIT) for the six months ended in Jan. 2026 was £732 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Jan. 2026 was £1,290 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Next's annualized ROC % for the quarter that ended in Jan. 2026 was 26.40%. Next's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jan. 2026 was 54.07%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Next's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Jan. 2026 was 6.95%.


Next  (LSE:NXT) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Next's annualized ROC % for the quarter that ended in Jan. 2026 is calculated as:

ROC % (Q: Jan. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jul. 2025 ) + Invested Capital (Q: Jan. 2026 ))/ count )
=1455.4 * ( 1 - 24.56% )/( (4045.2 + 4272.9)/ 2 )
=1097.95376/4159.05
=26.40 %

where

Note: The Operating Income data used here is two times the semi-annual (Jan. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Next's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jan. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Jan. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jul. 2025  Q: Jan. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=1463.6/( ( (1388.9 + max(1230.7, 0)) + (1400.8 + max(1393.8, 0)) )/ 2 )
=1463.6/( ( 2619.6 + 2794.6 )/ 2 )
=1463.6/2707.1
=54.07 %

where Working Capital is:

Working Capital(Q: Jul. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1392.6 + 1029.8 + 159.7) - (799.4 + 0 + 552)
=1230.7

Working Capital(Q: Jan. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1507.9 + 949.5 + 113.5) - (546.2 + 0 + 630.9)
=1393.8

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Jan. 2026) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

Next's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Jan. 2026 )
=1289.8/18559.483
=6.95 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Next EBIT Related Terms


Next EBIT Historical Data

* Premium members only.

The historical data trend for Next's EBIT can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Next EBIT Chart

Next Annual Data
Trend Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24 Jan25 Jan26
EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 909.60 947.20 1,103.30 1,083.60 1,289.80

Next Semi-Annual Data
Jul16 Jan17 Jul17 Jan18 Jul18 Jan19 Jul19 Jan20 Jul20 Jan21 Jul21 Jan22 Jul22 Jan23 Jul23 Jan24 Jul24 Jan25 Jul25 Jan26
EBIT Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 646.70 479.80 603.80 558.00 731.80

LSE:NXT vs TJX, ROST, BURL: EBIT Comparison

For the Apparel Retail subindustry, Next's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Next EV-to-EBIT vs Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Next's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where Next's EV-to-EBIT falls into.


LSE:NXT
90GF Score
Next PLC LSE:NXT
EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
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Next EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Jan. 2026 adds up the semi-annually data reported by the company within the most recent 12 months, which was £1,290 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about EBIT →
What does a EBIT of £1,290 Mil mean?
Next (LSE:NXT) has a EBIT of £1,290 Mil as of Jan. 2026. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Next.
Is Next's EBIT too high?
Next's current EBIT is £1,290 Mil. Overall, Next has a GF Score™ of 90/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Next's EBIT compare to TJX and ROST?
Next's EBIT of £1,290 Mil can be compared against companies in the Retail - Cyclical industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EBIT for a Retail - Cyclical company?
A good EBIT depends on the Retail - Cyclical industry context. However, EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EBIT mean?
A high EBIT can signal that a stock is expensive relative to its fundamentals. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Next. Next's current EBIT is £1,290 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Next stock overvalued right now?
Based on GuruFocus' analysis, Next (LSE:NXT) is currently considered Modestly Overvalued. The stock's GF Value™ is £122.95, compared to a current price of £146.55 — trading 19.2% above its estimated fair value. The current EBIT is £1,290 Mil. Next's overall GF Score™ is 90/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EBIT calculated?
EBIT is calculated from a company's financial statements. For Next (LSE:NXT), the current EBIT is £1,290 Mil as of Jan. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Next (LSE:NXT) Overvalued in 2026?

Based on GuruFocus' analysis, Next stock appears to be overvalued. The current stock price of £146.55 is trading 19.2% above its estimated GF Value™ of £122.95. GuruFocus considers Next to be Modestly Overvalued.

Key valuation signals for LSE:NXT:

  • EBIT: £1,290 Mil
  • GF Value™: £122.95 vs. price of £146.55 (19.2% above fair value)
  • GF Score™: 90/100 with 2 warning signs

No single metric tells the full story. See the LSE:NXT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Next Business Description

Address Desford Road, Enderby, Leicester, GBR, LE19 4AT
Next PLC operates as a retailer, specializing in the sale of clothing, footwear, accessories, and home products. A portion of the company's product offerings comprises items bearing the Next brand. Additionally, the majority of the company's remaining sales occur through retail stores located outside the United Kingdom, which it franchises. The company's segments encompass NEXT Online, NEXT Finance, NEXT Retail, and Other Business Activities. A substantial portion of the company's revenue is derived from customers within the United Kingdom; however, its presence extends to regions such as the Rest of Europe, the Middle East, Asia, and the Rest of the World.
90GF Score

Get the complete analysis for LSE:NXT

EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

£146.55
Price
£122.95
GF Value