TGT Q2 2026 Earnings
Reported Aug 20, 2025 at 6:45 AM ET · SEC Source
Q2 26 EPS
$2.05
BEAT +0.72%
Est. $2.04
Q2 26 Revenue
$25.21B
BEAT +1.23%
Est. $24.90B
vs S&P Since Q2 26
+21.7%
BEATING MARKET
TGT +34.6% vs S&P +12.9%
Market Reaction
Did TGT Beat Earnings? Q2 2026 Results
Target offered a cautious but cleaner-than-feared quarter in Q2 fiscal 2026, edging past Wall Street expectations on both the top and bottom lines even as the broader sales picture remained under pressure. The retailer posted revenue of $25.21 billio… Read more Target offered a cautious but cleaner-than-feared quarter in Q2 fiscal 2026, edging past Wall Street expectations on both the top and bottom lines even as the broader sales picture remained under pressure. The retailer posted revenue of $25.21 billion, beating the $24.90 billion consensus by 1.23%, though that figure still represented a 0.9% decline from a year ago, extending a prolonged stretch of softness. Diluted EPS of $2.05 nudged past the $2.04 consensus estimate by 0.72%, but marked a sharp 20.2% drop from $2.57 in the prior-year period, as gross margin contracted 100 basis points to 29.0% under pressure from elevated markdowns and tariff-related purchase order cancellation costs. The quarter also brought a significant leadership development, with the board appointing COO Michael Fiddelke as the company's next CEO, signaling a push toward operational continuity at a critical moment. Looking ahead, Target maintained its full-year outlook for a low-single digit sales decline and adjusted EPS of approximately $7.00 to $9.00, as it heads into the back-to-school and holiday seasons seeking to rebuild momentum.
Key Takeaways
- • Traffic and sales trends improved meaningfully versus Q1, particularly in stores
- • All six core merchandising categories saw comparable sales improvements versus Q1
- • Digital comparable sales grew 4.3%, with over 25% growth in same-day delivery powered by Target Circle 360
- • Non-merchandise sales grew 14.2% with Roundel, membership, and marketplace revenues all growing double digits
- • Lower inventory shrink partially offset gross margin pressure
- • Disciplined cost management held SG&A expenses essentially flat year-over-year
TGT YoY Financials
Q2 2026 vs Q2 2025, source: SEC Filings
TGT Revenue by Segment
With YoY comparisons, source: SEC Filings
“With the board's unanimous decision to appoint Michael Fiddelke as Target's next CEO, I want to express my full confidence in his leadership and focus on driving improved results and sustainable growth. He's contributed meaningfully during times of change and played a critical role in establishing the differentiated capabilities that will continue to drive Target forward. Michael brings a deep understanding of our business and a genuine commitment to accelerating our progress.”
— Brian Cornell, Q2 2026 Earnings Press Release
TGT Earnings Trends
TGT vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
TGT EPS Trend
Earnings per share: estimate vs actual
TGT Revenue Trend
Quarterly revenue: estimate vs actual
TGT Quarterly Results
4 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q4 26 BEAT FY | $2.16 | $2.44 | +12.96% | $30.45B | +0.00% |
| FY Full Year | $7.31 | $7.57 | +3.56% | $104.78B | +0.00% |
| Q3 26 BEAT | $1.71 | $1.78 | +4.21% | $25.27B | -0.07% |
| Q2 26 BEAT | $2.04 | $2.05 | +0.72% | $25.21B | +1.23% |
| Q1 26 MISS | $1.65 | $1.30 | -21.27% | $23.85B | -2.06% |