Target (NYSE:TGT) Releases Earnings Results, Beats Expectations By $1.76 EPS

Posted by Francis Steltz on Aug 20th, 2026

Target logo Target (NYSE:TGT – Get Free Report) issued its earnings results on Wednesday. The retailer reported $4.11 EPS for the quarter, beating analysts’ consensus estimates of $2.35 by $1.76, FiscalAI reports. The business had revenue of $26.54 billion during the quarter, compared to analyst estimates of $26.15 billion. Target had a return on equity of 22.92% and a net margin of 3.24%.Target’s revenue was up 5.3% on a year-over-year basis. During the same period in the prior year, the company posted $2.05 earnings per share. Target updated its FY 2026 guidance to 9.900-10.900 EPS.

Here are the key takeaways from Target’s conference call:

Second-quarter sales and traffic accelerated: Net sales rose 5.3% to $26.5 billion, comparable sales increased 3.8%, and traffic grew 3.6%, with digital comparable sales up 8.7%.
Target reported strong momentum in food and beverage, beauty, and “Fun 101” categories, including snack sales up more than 15%, Lego sales up more than 30%, and Target Plus marketplace GMV up more than 40%.
Management raised full-year net sales growth guidance to around 5% and increased adjusted EPS guidance to $9.90-$10.90; excluding tariff refunds, the EPS midpoint was raised by $0.75 versus the prior outlook.
Operating execution improved, with inventory reliability and guest satisfaction reaching multi-year highs, same-day and next-day unit fulfillment up nearly 30%, and plans to resume share repurchases in the second half of the year.
Results and guidance benefited materially from a $994 million tariff-refund benefit, contributing $1.65 to quarterly EPS, while management acknowledged that apparel and home remain underperforming and will require substantial work through 2027 and beyond.

Target Price Performance

NYSE:TGT opened at $159.11 on Thursday. The firm has a market cap of $72.27 billion, a PE ratio of 21.02, a price-to-earnings-growth ratio of 2.47 and a beta of 0.97. Target has a 12 month low of $83.44 and a 12 month high of $161.98. The company has a quick ratio of 0.30, a current ratio of 0.93 and a debt-to-equity ratio of 0.87. The company’s 50-day moving average price is $139.71 and its two-hundred day moving average price is $127.38.

Target Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, September 1st. Investors of record on Wednesday, August 12th will be issued a dividend of $1.16 per share. The ex-dividend date of this dividend is Wednesday, August 12th. This represents a $4.64 annualized dividend and a yield of 2.9%. This is an increase from Target’s previous quarterly dividend of $1.14. Target’s payout ratio is 61.29%.

Analysts Set New Price Targets

A number of brokerages have recently issued reports on TGT. Bank of America restated an “underperform” rating and issued a $124.00 price objective (up from $110.00) on shares of Target in a research note on Wednesday, August 12th. KeyCorp reissued a “sector weight” rating on shares of Target in a research note on Thursday, May 21st. Citigroup reissued a “market outperform” rating on shares of Target in a research report on Monday. Truist Financial raised their price target on shares of Target from $130.00 to $147.00 and gave the stock a “hold” rating in a research note on Friday, August 14th. Finally, Sanford C. Bernstein lifted their price objective on Target from $124.00 to $135.00 and gave the company a “market perform” rating in a report on Friday, July 31st. One investment analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating, sixteen have given a Hold rating and three have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, Target has a consensus rating of “Hold” and an average target price of $145.33.

View Our Latest Analysis on TGT

Key Headlines Impacting Target

Here are the key news stories impacting Target this week:

Positive Sentiment: Target reported second-quarter sales of $26.54 billion, up 5.3% year over year and ahead of estimates near $26.15 billion. Comparable sales increased 3.8%, supported by a 3.6% rise in traffic. Target Corporation Reports Second Quarter Earnings
Positive Sentiment: Reported EPS was $4.11, substantially above the $2.35 analyst consensus and up from $2.05 a year earlier. Adjusted earnings were also reported above expectations, indicating broad improvement in operating performance. Target Earnings Report
Positive Sentiment: Management raised fiscal 2026 guidance to approximately $9.90–$10.90 EPS and about 5% sales growth, above prior expectations. The improved outlook reflects stronger traffic, digital demand, merchandise performance and pricing initiatives. Target lifts annual forecasts
Positive Sentiment: Target said traffic from artificial-intelligence platforms is contributing to digital discovery and sales growth, adding another potential avenue for online customer acquisition. Target touts AI-platform traffic
Neutral Sentiment: The company’s dividend remains attractive at $1.16 per share quarterly, or $4.64 annually, but its recent 1.8% increase trails Walmart’s dividend-growth profile and may limit appeal for investors focused primarily on income.
Negative Sentiment: Nearly $1 billion in tariff refunds materially boosted quarterly profitability. Because this benefit is largely one-time, investors may discount part of the earnings beat and focus more closely on underlying margins and future costs. Target raises fiscal-year forecast
Negative Sentiment: After a strong rally that brought the stock close to its 52-week high, valuation and expectations are elevated. Jim Cramer remained bullish but advised investors to wait for a pullback, highlighting near-term profit-taking risk. Jim Cramer comments on Target

Insider Buying and Selling at Target

In other news, insider Cara A. Sylvester sold 10,000 shares of Target stock in a transaction that occurred on Friday, May 29th. The shares were sold at an average price of $125.89, for a total value of $1,258,900.00. Following the completion of the transaction, the insider owned 45,930 shares in the company, valued at approximately $5,782,127.70. The trade was a 17.88% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Insiders own 0.13% of the company’s stock.

Institutional Investors Weigh In On Target

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. State Street Corp boosted its stake in Target by 2.5% in the third quarter. State Street Corp now owns 37,648,065 shares of the retailer’s stock worth $3,377,031,000 after purchasing an additional 911,964 shares in the last quarter. Charles Schwab Investment Management Inc. increased its stake in shares of Target by 3.4% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 17,065,926 shares of the retailer’s stock valued at $1,668,194,000 after buying an additional 561,898 shares in the last quarter. Invesco Ltd. raised its holdings in shares of Target by 21.1% in the fourth quarter. Invesco Ltd. now owns 4,734,609 shares of the retailer’s stock valued at $462,808,000 after buying an additional 824,446 shares during the last quarter. Ameriprise Financial Inc. raised its holdings in shares of Target by 17.1% in the second quarter. Ameriprise Financial Inc. now owns 3,162,050 shares of the retailer’s stock valued at $311,911,000 after buying an additional 461,495 shares during the last quarter. Finally, AQR Capital Management LLC raised its holdings in shares of Target by 243.8% in the fourth quarter. AQR Capital Management LLC now owns 2,870,210 shares of the retailer’s stock valued at $280,563,000 after buying an additional 2,035,298 shares during the last quarter. 79.73% of the stock is owned by institutional investors and hedge funds.

Target Company Profile

(Get Free Report)

Target Corporation (NYSE: TGT) is a U.S.-based general merchandise retailer headquartered in Minneapolis, Minnesota. The company operates a network of full-line and small-format stores across the United States alongside a national e-commerce platform and mobile app. Target’s retail assortment spans apparel, home goods, electronics, groceries and household essentials, plus beauty, baby and pet categories. The firm complements national brands with a portfolio of owned and exclusive labels and partnerships that help differentiate its merchandise assortment.

Target traces its roots to the Dayton Company, founded by George Dayton in 1902; the Target discount chain was launched in 1962 and the parent company later adopted the Target Corporation name.