Companies /Consumer Defensive

Target Corp

NYSE: TGT Discount Stores
$163.75
▲ $2.87 (+1.78%) today
Markets closed · 7:21pm ET

Q2 2026 Earnings

Reported Aug 20, 2025, 6:45am ET · SEC source
$2.05
Beat +0.72%
EPS · est. $2.04
$25.2B
Beat +1.23%
Revenue · est. $24.9B
−16.8%
Trailing market
TGT vs S&P since report
5 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−4%0+4%+8%Aug 20Aug 21report 6:45am ETearnings−0.5%−0.5%
−4%0+4%+8%Aug 20Aug 21earnings−0.5%−0.5%
TGT −0.5%S&P 500 −0.5%
−4%0+4%+8%Aug 20Aug 21report 6:45am ETearnings−0.9%−0.5%
−4%0+4%+8%Aug 20Aug 21earnings−0.9%−0.5%
TGT −0.5%NASDAQ −0.9%
0+4%+8%Aug 19Aug 28report 6:45am ETearnings+1.2%+2.5%
0+4%+8%Aug 19Aug 28earnings+1.2%+2.5%
TGT +2.5%S&P 500 +1.2%
0+4%+8%Aug 19Aug 28report 6:45am ETearnings+0.9%+2.5%
0+4%+8%Aug 19Aug 28earnings+0.9%+2.5%
TGT +2.5%NASDAQ +0.9%
−6.33%
Day of report
−1.65%
Next session
−0.74%
One week
−12.29%
30 days

S&P 500 over the same 30 days: +4.50%.

Did TGT Beat Earnings? Q2 2026 Results

Target offered a cautious but cleaner-than-feared quarter in Q2 fiscal 2026, edging past Wall Street expectations on both the top and bottom lines even as the broader sales picture remained under pressure. The retailer posted revenue of $25.21 billion, beating the $24.90 billion consensus by 1.23%, though that figure still represented a 0.9% decline from a year ago, extending a prolonged stretch of softness. Diluted EPS of $2.05 nudged past the $2.04 consensus estimate by 0.72%, but marked a sharp 20.2% drop from $2.57 in the prior-year period, as gross margin contracted 100 basis points to 29.0% under pressure from elevated markdowns and tariff-related purchase order cancellation costs. The quarter also brought a significant leadership development, with the board appointing COO Michael Fiddelke as the company's next CEO, signaling a push toward operational continuity at a critical moment. Looking ahead, Target maintained its full-year outlook for a low-single digit sales decline and adjusted EPS of approximately $7.00 to $9.00, as it heads into the back-to-school and holiday seasons seeking to rebuild momentum.

Key Takeaways
  • Traffic and sales trends improved meaningfully versus Q1, particularly in stores
  • All six core merchandising categories saw comparable sales improvements versus Q1
  • Digital comparable sales grew 4.3%, with over 25% growth in same-day delivery powered by Target Circle 360
  • Non-merchandise sales grew 14.2% with Roundel, membership, and marketplace revenues all growing double digits
  • Lower inventory shrink partially offset gross margin pressure
  • Disciplined cost management held SG&A expenses essentially flat year-over-year

“With the board's unanimous decision to appoint Michael Fiddelke as Target's next CEO, I want to express my full confidence in his leadership and focus on driving improved results and sustainable growth. He's contributed meaningfully during times of change and played a critical role in establishing the differentiated capabilities that will continue to drive Target forward. Michael brings a deep understanding of our business and a genuine commitment to accelerating our progress.”

Target CEO, on the earnings call

Forward Guidance & Outlook

For fiscal 2025, Target is maintaining its expectation of a low-single digit decline in sales, GAAP EPS of $8.00 to $10.00, and Adjusted EPS of approximately $7.00 to $9.00 (excluding gains from litigation settlements in Q1). The company noted it is entering the critical back-to-school and holiday seasons with a focus on consistent execution and building momentum.

TGT YoY Financials

Q2 2026 vs Q2 2025 · SEC filings Q2 2025 Q2 2026
$0$7.0B$14.0B$21.0B$25.5B$25.2BRevenue$7.6B$7.3BGross Profit$1.6B$1.3BOperating Income$1.2B$935.0MNet Income
$0$7.0B$14.0B$21.0BRevenueGross ProfitOperating IncomeNet Income

TGT Revenue by Segment

Food & Beverage$5.6B
Hardlines$3.5B
Home Furnishings & Décor$3.7B
Household Essentials$4.4B
Apparel & Accessories$4.1B
Beauty$3.4B
Advertising Revenue (Roundel)$217.0M
Credit Card Profit Sharing$134.0M

Figures from SEC filings and company reports. Not investment advice.