10-Q · May 29, 2026
Target Corporation's Q1 2026 earnings report revealed net sales of $25.4 billion, surpassing expected revenue and reflecting a 6.7% year-over-year growth. However, GAAP EPS of $1.71 showed a substantial decline from…
Earnings analysis · 10-Q
TGT earnings analysis
Filed August 28, 2026 · Our reading of the company's report
The latest report
Target delivered a strong Q2, with $26.539 billion of revenue and $4.11 diluted EPS, beating consensus by 3.3% and 9.3%, respectively. Comparable sales rose 3.8%, while reported gross and operating margins reached 33.7%…
Read full summary
Target delivered a strong Q2, with $26.539 billion of revenue and $4.11 diluted EPS, beating consensus by 3.3% and 9.3%, respectively. Comparable sales rose 3.8%, while reported gross and operating margins reached 33.7% and 9.6%, but the $994 million tariff refund materially inflated profitability. Management raised full-year sales-growth and EPS outlooks, although the $9.90-$10.90 EPS range includes approximately $1.65 per share of refund benefits and the supplied 10-Q text does not provide quarterly cash-flow, balance-sheet, or segment data.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $4.11
What stood out
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Revenue and EPS Beat Estimates
Revenue was $26.539 billion, $843 million above the $25.696 billion consensus estimate, while diluted EPS was $4.11 versus the $2.25 estimate, a 9.3% EPS beat.
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Comparable Sales Returned to Growth
Comparable sales increased 3.8%, indicating improved traffic and demand across the business. Digital comparable sales also increased 8.7%, led by same-day delivery growth.
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Margins Lifted by Tariff Refund
Reported gross margin was 33.7% and operating margin was 9.6%, supported by a $994 million tariff-refund benefit. Management indicated the refund contributed approximately 90 basis points to operating margin.
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Full-Year Outlook Raised
Management raised full-year net sales growth guidance to around 5%, approximately 1 percentage point above the prior outlook, and increased EPS guidance to $9.90-$10.90 from $7.50-$8.50.
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Substantial Repurchase Capacity Remains
The company had $8.3 billion remaining under its $15 billion share-repurchase authorization as of August 1, 2026, although it made no common-stock purchases during the three months ended August 1, 2026.
What to watch
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Tariff Refund Benefit Is Nonrecurring
The $994 million tariff refund and approximately $1.65 per-share EPS benefit are nonrecurring items; future EPS guidance excludes additional refunds. Reported operating margin of 9.6% therefore overstates underlying profitability.
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Underlying Margin Expansion Is Limited
Management's approximately 6% full-year operating-margin outlook includes 90 basis points from tariff refunds; excluding refunds, expected margin improvement is approximately 50 basis points over last year's 4.6%, leaving limited underlying expansion.
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Cash Conversion and Segment Detail Unavailable
The 10-Q provides no segment revenue breakdown, balance-sheet detail, operating cash flow, or free-cash-flow figure in the supplied filing text. This limits assessment of inventory, receivables, liquidity, and cash conversion for the quarter.
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No New Risk-Factor Mitigation Disclosed
The filing's Item 1A states that investors should consider the risk factors in the January 31, 2026 Form 10-K and does not identify new material risk-factor changes. Accordingly, the filing does not reduce exposure to previously disclosed retail, tariff, and execution risks.
Management's outlook
Management raised full-year net sales growth outlook to around 5% and operating margin outlook to around 6%. EPS guidance includes approximately $1.65 per share of Q2 tariff-refund benefits; approximately 90 basis points of operating margin also came from tariff refunds. The 10-Q itself does not provide a new numeric outlook versus the August 19 earnings release.
Earlier filings 4
10-K · March 11, 2026
Target positions itself as a design- and value-led omnichannel retailer focused on four strategic priorities (merchandising authority, guest experience, technology, and team/community). The company remains large-scale…
10-Q · August 29, 2025
Target reported Q2 net sales of $25.211B, down 0.9% year-over-year, with GAAP diluted EPS of $2.05 (down 20.2% YoY) and operating income of $1,317M (down 19.4% YoY). Gross margin compressed to 29.0% from 30.0% a year…
10-K · March 12, 2025
Target describes a multi-pronged strategy focused on curated assortment, owned & exclusive brands, expanded fulfillment (stores as hubs), loyalty (Target Circle / Target Circle 360) and growth of advertising and…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.