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Get filing alertsTarget reports Q2 EPS of $4.11, up 100% YoY; raises full-year guidance
Filed August 19, 2026 · Period ending August 19, 2026 · ~2 min read
Key Changes
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Q2 2026 diluted EPS of $4.11 doubled from $2.05 in Q2 2025; excluding the refund, EPS grew 20% year-over-year on 5.3% net sales growth to $26.5 billion.
Exhibit 99 view on EDGAR → -
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Target raised full-year 2026 net sales growth guidance to around 5% (up 1 percentage point) and EPS guidance to $9.90–$10.90 (including $1.65 from Q2 tariff refunds); excluding the refund, the midpoint rose $0.75 from prior guidance of $7.50–$8.50.
Exhibit 99 view on EDGAR → -
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Q2 comparable sales rose 3.8% on 3.6% traffic growth, with store comps up 2.7% and digital comps up 8.7%; all six core merchandise categories posted growth, with double-digit gains in Fun 101 and high single-digit growth in Food & Beverage and Beauty.
Exhibit 99 view on EDGAR → -
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Q2 operating income margin reached 9.6%, up from 5.2% in Q2 2025, including 3.7 percentage points from the tariff refund; excluding the refund, gross margin expanded approximately 100 basis points over the prior year's 29.0%, driven by easier comparisons and growth in higher-margin advertising and non-merchandise sales.
Exhibit 99 view on EDGAR → -
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Target increased Q2 capex 27% to $1.4 billion for store remodels and new locations, paid $518 million in dividends (up 1.8% per share), and did not repurchase shares; trailing twelve-month after-tax ROIC improved to 15.4% from 14.3%.
Exhibit 99 view on EDGAR →
Summary
Target reported strong second quarter 2026 results, with diluted EPS of $4.11 doubling from $2.05 in the prior-year quarter. The headline figure includes a $994 million pretax tariff refund under the International Emergency Economic Powers Act (IEEPA), which contributed $1.65 to EPS. Excluding this one-time benefit, EPS grew 20% year-over-year, reflecting solid underlying operating performance.
Net sales rose 5.3% to $26.5 billion, driven by a 3.8% increase in comparable sales on 3.6% traffic growth. All six core merchandise categories posted gains, with double-digit growth in Fun 101 (Hardlines) and high single-digit growth in Food & Beverage and Beauty. Digital comparable sales grew 8.7%, with same-day delivery up over 25%.
Operating income margin reached 9.6%, up from 5.2% in Q2 2025, including 3.7 percentage points from the tariff refund. Excluding the refund, gross margin expanded approximately 100 basis points over the prior year's 29.0%, driven by easier comparisons against last year's elevated markdowns and purchase order cancellation costs, as well as continued growth in higher-margin advertising and non-merchandise sales. Target raised full-year 2026 guidance, now expecting net sales growth around 5% (up 1 percentage point) and EPS of $9.90–$10.90 (including the $1.65 tariff refund). Excluding the refund, the midpoint of the EPS range rose $0.75 from prior guidance of $7.50–$8.50, reflecting confidence in sustained momentum. The company increased capital expenditures 27% to $1.4 billion, focusing on store remodels and new locations, while trailing twelve-month after-tax ROIC improved to 15.4% from 14.3%.
Section-by-Section Diff
Event · Item 2.02 — Results of Operations and Financial Condition
Target disclosed Q2 2026 financial results for the three months ended August 1, 2026.
Added in current filing · verify on EDGAR →
On August 19, 2026, Target Corporation issued a News Release containing its financial results for the three months ended August 1, 2026.
Target announced its second quarter 2026 financial results covering the period ending August 1, 2026. The detailed results are provided in the attached press release (Exhibit 99), which would contain revenue, earnings, comparable sales, and other operating metrics for the quarter.
Event · Exhibit 99
Added in current filing · view on EDGAR →
The Company reported second quarter GAAP and Adjusted earnings per share (EPS) of $4.11, compared with prior-year GAAP and Adjusted EPS of $2.05. Second quarter 2026 results include $994 million of pretax tariff refund benefits within gross margin and operating income. These gains contributed $752 million to net earnings and $1.65 to both GAAP and Adjusted EPS.
Target's Q2 2026 diluted EPS of $4.11 doubled from $2.05 in Q2 2025, driven by a $994 million pretax tariff refund under the International Emergency Economic Powers Act (IEEPA). The refund contributed $1.65 to EPS; excluding it, EPS grew 20% year-over-year. Net sales rose 5.3% to $26.5 billion, with comparable sales up 3.8% on 3.6% traffic growth.
Added in current filing · view on EDGAR → · paraphrased
Comparable sales grew 3.8 percent in the second quarter, reflecting a comparable store sales increase of 2.7 percent and comparable digital sales increase of 8.7 percent. ... Second quarter net sales grew 5.3 percent over last year, with comparable sales growth of 3.8 percent driven by a 3.6 percent increase in comparable traffic.
Q2 comparable sales rose 3.8%, driven by a 3.6% increase in traffic (transaction count). Store comps grew 2.7% and digital comps 8.7%, with same-day delivery up over 25%. All six core merchandise categories posted growth, with double-digit gains in Fun 101 (Hardlines) and high single-digit growth in Food & Beverage and Beauty. Non-merchandise sales (advertising, Circle 360 membership, Target+ marketplace) grew over 20%.
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Figures/quotes linked to EDGAR · Narrative written by AI · Aug 19, 2026 · How we verify