Target Q2 2026: EPS doubles to $4.11 on $994M tariff refund; comp sales +100.5%, no buybacks

Filed August 28, 2026 · Period ending August 1, 2026 · Compared to 10-Q Aug 29, 2025 · ~2 min read

Key Changes

• high

  Net income rose 100.7% to $1.88B and diluted EPS doubled to $4.11, driven by a one-time $994M tariff refund ($1.65/share) following a Supreme Court ruling that invalidated IEEPA tariffs. Excluding the refund, underlying operating income grew ~19%.

  MD&A: Operating Income & Notes: Tariff Refunds verify on EDGAR →
• high

  Gross margin expanded 470 bp to 33.7%, with 370 bp from the tariff refund and 100 bp from lower purchase order cancellation costs, reduced markdowns, and advertising revenue growth. Prior year suffered from elevated cancellation costs and markdowns.

  MD&A: Gross Margin verify on EDGAR →
• high

  Comparable sales turned positive at +3.8% (vs -1.9% prior year), driven by 3.6% traffic growth and 0.2% higher average transaction. Digital comp sales accelerated to 8.7% from 4.3%, reflecting strength in Order Pickup, Drive Up, and Same Day Delivery.

  MD&A: Comparable Sales verify on EDGAR →