EarningsQ2 2026 Earnings Report
MX:TGT Q2 2026 EPS Results
Actual EPS$74.28
Consensus EPS$42.40
Beat/MissBeat by +$31.88
One Year Ago EPS$37.05
MX:TGT Q2 2026 Revenue Results
Actual Revenue$479.65B
Expected Revenue$472.30B
Beat/MissBeat by +$7.35B
YoY Revenue Growth+5.27%
Earnings Announcement Details
QuarterQ2 2026
Date08/19/2026
TimeBefore Open
Conference CallWednesday, August 19, 2026
MX:TGT Upcoming Earnings
Target's next earnings date is estimated for November 18, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
MX:TGT Q2 2026 Earnings Call
0:00 / 0:00
Q2 2026 Earnings Slide Deck
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call presented a clear improvement in top-line trends, category momentum (notably Food, Fun101, Beauty, and toys), strong digital and loyalty growth, improved fulfillment metrics, and raised guidance — all supported by strategic investments in stores, remodels, supply chain and AI. However, a meaningful portion of margin and EPS upside in the quarter was driven by a large one-time tariff refund ($994M pretax / $1.65 EPS), apparel and home remain underperforming and SG&A is rising. Management emphasized that underlying performance excluding refunds is healthy (adjusted EPS ex-refunds up ~20% in Q2) and that they are early in a multi-year transformation. Overall, the positives and momentum reported materially outweigh the caveats and one-time benefits, though sustainable improvement will depend on continued execution across apparel, home, inventory consistency and disciplined capital deployment.Company Guidance
Revenue and Comparable Sales Growth
Net sales of $26.5 billion, up 5.3% year-over-year; comparable sales +3.8% (store comps +2.7%, digital comps +8.7%); traffic growth +3.6% with average ticket roughly flat.
Improved Profitability and EPS
GAAP and adjusted EPS of $4.11 vs $2.05 a year ago. Excluding tariff refunds, EPS was approximately 20% higher than prior year. Operating margin improved to 9.6% from 5.2% last year; excluding tariff refund impact, operating margin was ~70 basis points higher YoY.
Raised Full-Year Guidance
Full-year net sales growth guidance raised to around 5% (1 percentage point above prior outlook). EPS guidance raised to $9.90–$10.90 (this range includes $1.65 of tariff refunds recognized in Q2); excluding tariff refunds the midpoint of guidance is $0.75 higher than prior midpoint.
Category and Merchandising Momentum
Notable category strength: snack sales running >15% ahead of last year; LEGO sales +30%; plush sales +20%; Heyday $10 headphones sales +35%. Q2 transitions (largest volume of in-store transitions in a decade) boosted culture-driven categories and limited-time collaborations (e.g., LoveShackFancy and Pokemon).
Digital & Loyalty Growth
Digital strength: same-day delivery growth >25%; digital comparable sales +8.7%. Marketplace and media growth: Target+ marketplace GMV grew >40%, Roundel gross billings grew nearly 20%, and Target Circle 360 membership revenue increased >40%.
Operational Improvements & Fulfillment
Inventory reliability on top/frequency items reached multiyear highs; overall inventory $13.2 billion, up ~3% YoY. Same-day and next-day fulfillment units were nearly 30% higher than last year. Trailing 12‑month after-tax ROIC improved to 15.4% from 14.3%.
Strategic Investments and Capacity Expansion
Year-to-date capital expenditures ~ $2.4 billion (up nearly 30% YoY); full-year CapEx expected about $5 billion. Opened 17 new stores in the quarter (24 full-size stores YTD) and advanced >100 remodels toward ~130 remodels planned for the year.
Technology & AI Initiatives
Accelerating tech investments: partnership activity with OpenAI and Google Gemini; digital traffic from external AI platforms growing more than 3.5x the industry year-over-year; new Chief AI Officer hired and rollout of tools like Proxima (digital twin for inventory flow testing).
MX:TGT Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed