Target (TGT) Q3 2025 Earnings
Adjusted EPS excludes $161 million pretax ($120 million net of tax, $0.26 per share) in business transformation costs including employee severance and related costs, asset impairments, and charges related to termination of a commercial partnership.
How Did TGT Stock React to Q3 2025 Earnings?
S&P 500 over the same 30 days: +3.35%.
Did TGT Beat Earnings? Q3 2025 Results
Yes. Target reported Q3 2025 earnings of $1.78 a share on Nov 19, 2025, beating the $1.71 consensus estimate by 4.2%. Revenue was $25.3B against a $25.3B estimate.
Target delivered a mixed third quarter for fiscal 2025, edging past profit expectations while falling just short on revenue as persistent weakness in discretionary spending continued to weigh on results. Adjusted EPS of $1.78 beat the $1.71 consensus by 4.21%, but net sales of $25.27 billion slipped 1.6% year-over-year and came in fractionally below the $25.29 billion analysts had expected. The clearest drag on the quarter was a 2.7% comparable sales decline, with store traffic falling 2.2% and categories like Home Furnishings and Apparel pulling back meaningfully, a dynamic that mirrors the broader consumer trade-down trend benefiting discount rivals. Gross margin held nearly flat at 28.2%, supported by a surge in advertising revenue through Target's Roundel platform, which jumped to $241 million from $167 million a year ago. Looking ahead, management maintained its Q4 guidance for a low-single-digit sales decline and set full-year adjusted EPS in a range of approximately $7.00 to $8.00, signaling continued caution as incoming CEO Michael Fiddelke reshapes the company's strategic priorities.
- Food & Beverage and Hardlines delivered comparable sales growth
- Digital comparable sales grew 2.4%, led by more than 35% growth in same-day delivery powered by Target Circle 360
- Non-merchandise sales grew nearly 18% with Roundel, membership and marketplace revenues all growing double digits
- Continued softness across broader discretionary portfolio offset category gains
- Comparable sales declined 2.7%, driven by 2.2% decline in traffic and 0.5% decline in average transaction amount
- Gross margin rate slightly lower at 28.2% vs 28.3% due to increased markdowns, partially offset by advertising revenue growth, lower inventory shrink and supply chain efficiencies
“Thanks to the incredible work and dedication of the Target team, our third quarter performance was in line with our expectations, despite multiple challenges continuing to face our business.”
Target CEO, on the earnings call
What Was Target's Outlook in Q3 2025?
For Q4 2025, Target maintains its expectation of a low-single-digit decline in sales. Full-year GAAP EPS is now expected to be approximately $7.70 to $8.70. Full-year Adjusted EPS, which excludes gains from litigation settlements in Q1 and severance and asset-related charges in Q3, is now expected to be approximately $7.00 to $8.00.
TGT YoY Financials
| Metric | Q3 2025 | Q3 2024 | Year over year |
|---|---|---|---|
| Revenue | $25.3B | $25.7B | −1.6% |
| Gross Profit | $7.1B | $7.3B | −1.8% |
| Operating Income | $948.0M | $1.2B | −18.8% |
| Net Income | $689.0M | $854.0M | −19.3% |
TGT Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.