Target Corp
Q2 2027 Earnings
Includes $994 million pretax ($752 million after-tax, $1.65 per share) benefit from IEEPA tariff refunds received during Q2 2026, classified as a reduction of Cost of Sales
Market Reaction
Did TGT Beat Earnings? Q2 2027 Results
Target Corp posted a blowout second quarter for fiscal 2027, with adjusted EPS of $4.11 clearing the $2.34 Wall Street consensus by 75.84%, marking the fourth consecutive quarter the retailer has beaten EPS estimates. The headline number more than doubled from $2.05 a year ago, though a significant portion of that gain came from $994 million in pretax IEEPA tariff refunds received during the period, which contributed $1.65 per share to the bottom line after taxes. Revenue of $26.54 billion rose 5.3% year-over-year and edged past the $26.14 billion estimate, powered by 3.8% comparable sales growth as store traffic climbed 3.6% and digital comparable sales surged 8.7%. Broad-based merchandising strength, including double-digit gains in Hardlines and high single-digit growth in Food and Beverage and Beauty, gave the topline momentum beyond the tariff windfall. Looking ahead, Target raised its full-year net sales growth outlook to approximately 5% and set GAAP and adjusted EPS guidance at $9.90 to $10.90, a range that incorporates the $1.65 tariff benefit but excludes any future refunds.
- Comparable sales growth of 3.8% driven by 3.6% increase in comparable traffic
- Store comparable sales grew 2.7%, 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%, reflecting strong Roundel ad revenue, Target Circle 360 membership, and Target+ marketplace growth
- $994 million in IEEPA tariff refunds contributed $1.65 to EPS
- Gross margin rate expanded approximately 100 basis points excluding tariff refunds, benefiting from comparison over last year's 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. Over the past year, we've reduced prices on more than 10,000 frequently purchased items as part of our commitment to delivering outstanding value every day, while continuing to invest in newness, convenience, and an elevated shopping experience. While there's still meaningful work ahead, we're encouraged by the progress we're making and remain focused on executing with discipline, staying agile in a dynamic operating environment, and investing in our team and capabilities to drive sustainable, profitable growth over the long term.”
Target CEO, on the earnings call
Forward Guidance & Outlook
Target raised its full-year 2026 guidance: net sales growth is now expected in a range around 5%, one percentage point higher than 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, full-year operating income margin is expected to be approximately 50 basis points higher than last year's Adjusted rate of 4.6%. GAAP and Adjusted EPS guidance was updated to $9.90–$10.90, including $1.65 of Q2 tariff refund benefits but excluding any potential future tariff refunds. Excluding tariff refunds, the midpoint reflects a $0.75 increase versus prior guidance of $7.50–$8.50.
TGT YoY Financials
TGT Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.