TARGET CORP 8K

Target Corporation reported strong second quarter 2026 results, boosted by tariff refunds and broad-based sales growth, and raised its full-year 2026 sales, margin, and EPS guidance.

On August 19, 2026, Target Corporation reported its second quarter 2026 financial results, highlighting a 5.3% year-over-year increase in net sales to $26.5 billion, 3.8% comparable sales growth driven primarily by a 3.6% increase in traffic, and strength across stores and digital channels as well as all core merchandising categories. GAAP and Adjusted diluted EPS were $4.11 versus $2.05 a year earlier, including a $994 million pretax International Emergency Economic Powers Act tariff refund recorded as a reduction in cost of sales, which contributed approximately $752 million to net earnings and $1.65 per diluted share; excluding this benefit, EPS grew about 20%. Operating income nearly doubled to $2.6 billion with an operating margin of 9.6%, aided by higher gross margin (33.7%) and more than 20% growth in non-merchandise revenues such as Roundel advertising, Target Circle 360 memberships, and Target+ marketplace. The company increased capital expenditures by 27% to $1.4 billion in the quarter, paid $518 million in dividends, did not repurchase shares (leaving $8.3 billion remaining under its authorization), and reported trailing twelve-month after-tax ROIC of 15.4%, boosted by the tariff refunds. Based on first-half performance, Target raised full-year 2026 guidance to net sales growth of around 5%, an operating income margin rate around 6% (including about 90 basis points from the tariff refunds), and GAAP and Adjusted EPS of $9.90 to $10.90, with the midpoint excluding tariff refunds increased by $0.75 versus prior guidance, while cautioning that guidance excludes any potential future tariff refunds and remains subject to various risks outlined in its Form 10-K.

Filing Facts

CIK

27419

Ticker

TGT

Form

8K

Source Type

sec

Accession

0000027419-26-000034

Alert Tier

7