Target (TGT) Q2 2026 Earnings
Includes $994 million pretax ($752 million after-tax, $1.65 per share) benefit from IEEPA tariff refunds recognized as a reduction of Cost of Sales
How Did TGT Stock React to Q2 2026 Earnings?
S&P 500 over the same 30 days: +0.58%.
Did TGT Beat Earnings? Q2 2026 Results
Yes. Target reported Q2 2026 earnings of $4.11 a share on Aug 19, 2026, beating the $2.34 consensus estimate by 75.8%. Revenue was $26.5B against a $26.1B estimate.
Target delivered a blowout second quarter, reporting adjusted EPS of $4.11 against a consensus estimate of $2.34, a beat of 75.84%, while revenue of $26.54 billion edged past the $26.14 billion estimate and grew 5.3% year-over-year. The standout driver was a $994 million pretax IEEPA tariff refund recognized as a reduction of cost of sales, contributing $1.65 per share to the quarter's results; even setting that aside, gross margin expanded roughly 100 basis points as the company lapped last year's elevated markdowns and order cancellation costs. Topline momentum was broad-based, with comparable sales rising 3.8% on the back of a 3.6% increase in traffic, digital comparable sales climbing 8.7%, and all six core merchandise categories posting growth. Management raised full-year guidance meaningfully, now targeting roughly 5% net sales growth and adjusted EPS of $9.90 to $10.90, including the $1.65 tariff benefit, with the midpoint of the tariff-adjusted range rising $0.75 from prior guidance. Target's renewed focus on its own beauty concept also drew attention after it parted ways with a key third-party beauty partner earlier this year.
- Comparable sales growth of 3.8% driven by 3.6% increase in comparable traffic
- Store comparable sales grew 2.7% and digital comparable sales grew 8.7%
- Same-day delivery grew more than 25%
- All six core merchandising categories grew year-over-year
- Double-digit growth in Fun 101 and high single-digit growth in Food & Beverage and Beauty
- Non-merchandise sales grew over 20% driven by Roundel ad revenue, Target Circle 360 membership, and Target+ marketplace
- $994 million IEEPA tariff refunds recognized as reduction of Cost of Sales
- Gross margin expanded approximately 100 basis points excluding tariff refunds due to comparison over prior year elevated markdowns
- Price reductions on more than 10,000 frequently purchased items over the past year
“Second quarter results build on the encouraging momentum we saw in the first quarter, giving us increasing confidence that our strategy is resonating with our guests and strengthening our leadership position in style, design, and value.”
Target CEO, on the earnings call
What Is Target's Outlook?
Target raised its full-year 2026 guidance: net sales growth is now expected around 5% (up one percentage point from prior guidance). Full-year operating income margin rate is expected around 6%, including approximately 90 basis points of benefit from Q2 tariff refunds; excluding tariff refunds, margin is expected roughly 50 basis points higher than last year's Adjusted rate of 4.6%. GAAP and Adjusted EPS guidance was raised to $9.90–$10.90, including $1.65 of Q2 tariff refund benefits. Excluding tariff refunds, the midpoint increased $0.75 versus prior guidance of $7.50–$8.50. The guidance excludes any potential future tariff refunds.
TGT YoY Financials
| Metric | Q2 2026 | Q2 2025 | Year over year |
|---|---|---|---|
| Revenue | $26.5B | $25.2B | +5.3% |
| Gross Profit | $8.9B | $7.3B | +22.3% |
| Operating Income | $2.6B | $1.3B | +94.4% |
| Net Income | $1.9B | $935.0M | +100.8% |
TGT Revenue by Segment
When Does Target Report Next?
Figures from SEC filings and company reports. Not investment advice.