Consumer Staples · NYSE: TGT
Target: how the business works
Target sells food, household goods, clothing and home items in its stores and online, with net sales of $104.8 billion in FY2025, the year ended Jan 31, 2026.
By Hardik Bhandare · Checked against filings:
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Target Corporation · Minneapolis, Minnesota · Founded 1902
Last updated
- Net sales, FY2025 (ended Jan 31, 2026)
- $104.8B
- Operating income, FY2025
- $5.1B
- Net income, FY2025
- $3.7B
- Stores, Aug 1, 2026
- 2,019
- Employees, Jan 31, 2026
- About 415,000
The short version
Target in 5 points
1 · What it sells
Target sells food, household essentials, clothing, home goods, beauty products and toys in 2,019 stores and online, with net sales of $104.8 billion in FY2025 (February 2025 to January 2026).
2 · Who pays it
In FY2025, shoppers paid 98.0% of net sales, advertisers 0.9%, TD Bank Group 0.5% through card profit sharing and others 0.6%.
3 · What it keeps from $100
Of every $100 that came in during FY2025, Target kept $3.5 as net income, which includes one-off items; operating income per $100 of net sales was $4.9 as reported and $4.6 adjusted.
4 · Where the operating profit comes from
Target reports one segment and no profit by category: it states $5.1 billion of FY2025 operating income for the whole company, and non-merchandise lines (2.0% of net sales) have no profit figure.
5 · The one thing to watch
Q2 FY2026 (May to Aug 1, 2026) diluted EPS was $4.11, including $1.65 from $994 million of tariff refunds, and Adjusted EPS was also $4.11 because Target does not remove them.
Sources: From Target's FY2025 10-K and its Q2 FY2026 earnings release and 10-Q · checked
See the full receipt and the management scorecard below
01Where the money goes · FY2025 (year ended Jan 31, 2026)
Where does $100 of Target's money go?
Target · FY2025 (year ended Jan 31, 2026)
Receipt for every $100
| Merchandise cost | $64.8 |
|---|---|
| Supply chain and digital fulfillment | $7.2 |
| Store and head-office costs (SG&A) | $20.5 |
| Depreciation and amortization outside cost of sales | $2.5 |
| Net interest | $0.4 |
| Income taxes | $1.0 |
| Kept as net income | $3.5 |
| Total | $100 |
Each line = amount ÷ total money in × 100. Lines may not add to exactly $100 because of rounding.
How this is worked out
Cityfort calculation from FY2025 10-K. Of every $100 that came in during FY2025 (net sales plus net other income): each line = line ÷ $104.9 billion × 100. Store and head-office costs are after a $593 million settlement gain and $250 million of transformation costs.
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02The business in one line
What does Target do?
Shoppers pay Target for goods; most of that goes on buying, moving and selling them, and $3.5 of every $100 that came in during FY2025 was left as net income.
- In FY2025 (February 2025 to January 2026), merchandise was 98.0% of net sales. Advertising, credit card profit sharing and other income made up the other 2.0%.
- Target reports one business segment, so it gives no profit by category. Its fiscal years are named for the year they start in: FY2025 ended in January 2026.
03Who pays it
Who pays Target?
Shoppers (Target calls them guests)
98%
of revenue
People buying merchandise in stores or through digital channels: 98.0% of FY2025 net sales ($102.7 billion).
Advertisers
1%
of revenue
Vendors and marketplace sellers paying mostly for Roundel ads: 0.9% of FY2025 net sales ($915 million).
TD Bank Group and others
1%
of revenue
TD Bank Group's card profit sharing was 0.5% ($522 million). Others, such as marketplace sellers, paying members and tenants, were 0.6% ($626 million).
- Shoppers (Target calls them guests)98%
- Advertisers1%
- TD Bank Group and others1%
How spread out the customers are
Target's FY2025 10-K does not report sales to any single customer. Nearly all sales are in the US.
04Why it makes money
Why does Target make money?
Target keeps a thin slice of each sale, so small changes in markdowns and costs move profit a lot.
Gross margin, the share left after cost of sales, was 27.9% in FY2025, and operating income was $4.9 per $100 of net sales. In FY2022 net sales rose 2.9%, yet operating income fell to $3.8 billion from $8.9 billion. Target's FY2022 10-K attributes the lower margin to clearance and promotional markdowns and supply chain pressure.
Operating income per $100 of net sales
$8.4$4.9
FY2021 to FY2025
- Shoppers buy goods in stores and through digital channels
- Stores fulfill most of those sales, including digital orders
- Own and exclusive brands make up about 30% of merchandise sales
- Vendors and marketplace sellers pay for ads aimed at those shoppers
- Loyalty, card and paid membership programs offer discounts and delivery
- What is left after costs pays for new stores, dividends and debt
↺ Step 6 feeds back into step 1.
05Business segments · FY2025 (year ended Jan 31, 2026)
Which businesses make up Target?
Food and beverage
23%Target's largest category. Target reports one segment, so these are revenue categories and no profit is disclosed for any of them.
Revenue $24.1B
Household essentials
17%Cleaning, paper, health, baby and pet products.
Revenue $18.0B
Fun 101 (hardlines)
15%Electronics, toys, sporting goods and entertainment. Sales in Q2 FY2026 were $3.9 billion, up from $3.5 billion a year earlier.
Revenue $15.8B
Apparel and accessories
15%Clothing, jewelry, accessories and shoes.
Revenue $15.7B
Home furnishings and decor
15%Down from $19.5 billion in FY2022, the largest fall of any category over those years.
Revenue $15.6B
Beauty
13%Up from $11.1 billion in FY2022.
Revenue $13.2B
Everything else
2%Advertising $915 million, card profit sharing $522 million, other non-merchandise lines $626 million and other merchandise $205 million. The non-merchandise lines total $2.1 billion, 2.0% of net sales.
Revenue $2.3B
How the mix changed
- Food and beverage
- Household essentials
- Fun 101 (hardlines)
- Apparel and accessories
- Home furnishings and decor
- Beauty
- Everything else
Revenue by segment, FY2022 to FY2025.
US$
See the numbers
06The numbers · Consolidated · US$
How has Target done?
Revenue
$104.8BFY2025
Net sales fell from $109.1 billion in FY2022 to $104.8 billion in FY2025 (year ended Jan 31, 2026), and FY2023 had an extra week that added $1.7 billion.
US$
See the numbers
Net profit
$3.7BFY2025
Net income was $3.7 billion in FY2025, including one-off settlement gains and transformation costs, and $1.9 billion in Q2 FY2026, including $752 million of tariff refunds after tax.
US$
See the numbers
Profit kept per $100 of revenue
$3.5FY2025
Net income per $100 of net sales was $3.5 in FY2025, while operating income per $100 was $4.9 as reported and $4.6 on Target's adjusted measure.
$ of profit per $100 of revenue (net margin)
See the numbers
Free cash flow
$2.8BFY2025
Cash from operations minus spending on property and equipment, Cityfort calculation from FY2023 10-K and FY2025 10-K, was $2.8 billion in FY2025, down from $4.5 billion in FY2024; FY2022 was negative $1.5 billion.
US$ · cash from operations minus spending on plants and equipment
See the numbers
See all yearly numbers
EBITDA here = operating income plus depreciation and amortization (from the cash flow statement). Fiscal years are the company's own (Saturday nearest Jan 31. Target names each fiscal year after the calendar year it starts in: FY2025 ran from February 2025 to Jan 31, 2026, and Q2 FY2026 was May to Aug 1, 2026.). Net profit is the share belonging to the company's owners.
Learn: Fiscal years that don't end in December: Nvidia's FY2027 explained · Stock-based compensation and dilution: pay that becomes shares
07Who runs it
Who runs Target, and did they deliver?
Michael J. Fiddelke
Chief Executive Officer · since 2026
CEO since Feb 1, 2026. At Target since 2004; earlier its chief operating officer and chief financial officer. Base pay on appointment was $1.30 million, with a target annual incentive of 200% of base.
Brian C. Cornell
Executive Chair · since 2026
CEO from August 2014 to January 2026. His FY2025 pay was $21,830,088, against $27,506 for the median team member, a ratio of 794 to 1.
Jim Lee
Chief Financial Officer · since 2024
Joined in September 2024 from PepsiCo.
Lisa Roath
Chief Operating Officer · since 2026
Previously chief merchandising officer of food, essentials and beauty.
Cara Sylvester
Chief Merchandising Officer · since 2026
Previously chief guest experience officer.
What they said, and what happened
2 missed · 1 partly delivered · 5 too early to tell
Said on Mar 4, 2025
Target guided on Mar 4, 2025 to FY2025 net sales growth of around 1% and EPS of $8.80 to $9.80.
MissedWhat happened
Net sales fell 1.7%. GAAP EPS was $8.13 and Adjusted EPS $7.57. Target cut the guide on May 21 and Nov 19, 2025.
Said on Mar 4, 2025
Target said it would spend $4 billion to $5 billion on capital projects in FY2025.
MissedWhat happened
It spent $3.7 billion, below the range. On the Nov 19, 2025 call it had said around $4 billion.
Said on Mar 4, 2025
Target said it would open another 20 new stores in FY2025.
Partly deliveredWhat happened
It opened 18 and closed 1.
Said on Mar 4, 2025
Target restated a plan for 300 new stores over 10 years, after opening 23 in 2024.
Too early to tellWhat happened
It opened 23, 18 and 24 in FY2024, FY2025 and the first half of FY2026, 65 in total.
Said on Mar 4, 2025
Target said it aimed for "more than $15 billion in revenue growth over the next five years".
Too early to tellWhat happened
FY2025 net sales fell $1.8 billion. Net sales rose 6.7% in Q1 FY2026 and 5.3% in Q2 FY2026.
Said on Mar 3, 2026
Target guided on Mar 3, 2026 to FY2026 net sales growth of around 2% and EPS of $7.50 to $8.50.
Too early to tellWhat happened
Target raised sales growth to around 4% on May 20 and around 5% on Aug 19, 2026. The EPS guide became $9.90 to $10.90, including about $1.65 of refunds.
Said on Mar 3, 2026
Target said it planned about $5 billion of FY2026 capital spending, more than 30 new stores and more than 130 full remodels.
Too early to tellWhat happened
First-half capital spending was $2.4 billion. It opened 24 stores, and more than 100 remodels were underway on Aug 19, 2026.
Said on Aug 19, 2026
Target said on its Aug 19, 2026 call that Target Beauty Studio would reach more than 600 stores from the next month.
Too early to tellWhat happened
Q3 FY2026 results are not out. Target's events page lists the call for Nov 18, 2026.
08What could go wrong
What could go wrong for Target?
- Demand
Shoppers buying less
Net sales fell in FY2023, FY2024 and FY2025. In FY2025 comparable sales (merchandise sales, leaving out newer and closed stores) fell 2.6%, and traffic (number of transactions) fell 2.2%. Target says the holiday quarter brings a larger share of sales: Q4 FY2025 was $30.5 billion of the year's $104.8 billion.
Watch Comparable sales and traffic in each quarterly release.
- Regulation
Tariffs and imported goods
About half of Target's merchandise comes from outside the US, and China is the largest origin. The Supreme Court ruled on Feb 20, 2026 that tariffs under an emergency powers law (IEEPA) were not authorized. Target says new tariffs were then instituted against most major trading partners.
Watch Gross margin, and what Target says about tariffs each quarter.
- Other
Tariff refunds inside 2026 profit
Q2 FY2026 includes $994 million of refunds, which added 3.7 points to operating margin and $1.65 to EPS. Target has not recognized or estimated further claims, and its FY2026 guide excludes future refunds. CFO Jim Lee said on the Aug 19, 2026 call that the Q2 amount was most of the refunds applied for to date, and that Target expects some more.
Watch EPS and operating income with and without refunds, in each release.
- Other
Reactions to social-issue positions
Target's FY2025 10-K names reactions to its 2023 Pride assortment. It also says its 2025 changes to diversity, equity and inclusion (DEI) initiatives drew adverse reactions and "consumer boycotts organized throughout 2025".
Watch Traffic, and the reputation risk factor in each 10-K.
- Legal
Securities class actions
Two purported federal securities class actions, filed in early 2025 and consolidated, concern disclosures on environmental, social and governance (ESG) and diversity (DEI) risks and the 2023 Pride Month collection. Target says it intends to defend vigorously.
Watch The legal proceedings section of each 10-Q and 10-K.
- Execution
New leadership and a costly transformation
A new CEO took over on Feb 1, 2026, with a new chief operating officer and chief merchandising officer. FY2025 included $250 million of transformation costs, and about 1,800 headquarters roles were cut in October 2025. Target said on Mar 3, 2026 it would invest more than $2 billion extra in FY2026.
Watch Operating margin, excluding refunds, against the company's statements.
- Competition
Many kinds of rivals
Target's 10-K lists omnichannel retailers, department stores, off-price retailers, wholesale clubs, drug stores, supermarkets, direct-to-consumer brands and online marketplaces as competitors. It names failing to stand out from them as a risk.
Watch Sales in home, apparel and Fun 101 each quarter.
- Debt
Debt coming due
Target had $15.4 billion of debt and $5.4 billion of cash at Aug 1, 2026. It listed $2.0 billion of principal due in 2026 and repaid $1.0 billion of notes in April 2026. Its credit facilities carry a leverage covenant, and Target says it complies. Long-term ratings it stated at Aug 28, 2026 are A2 from Moody's and A from S&P.
Watch Debt, cash and any change in ratings in each 10-Q.
09Both sides
What do supporters and critics point to?
What supporters point to
- Comparable sales, which leave out newer and closed stores, rose 5.6% in Q1 FY2026 and 3.8% in Q2 FY2026, after falling in every quarter of FY2025.
- Target raised its FY2026 net sales growth guide from around 2% to around 5% between Mar 3 and Aug 19, 2026.
- Q2 FY2026 diluted EPS rose 100% to $4.11 and operating income 94.4%; minus the tariff refunds, Target says EPS rose 20% and operating income about 19%.
- Advertising revenue rose from $404 million in FY2022 to $915 million in FY2025.
- Target has paid a dividend every quarter since its 1967 IPO, and declared $4.54 a share in FY2025.
What critics point to
- Net sales fell three years in a row, from $109.1 billion in FY2022 to $104.8 billion in FY2025.
- Q2 FY2026 diluted and Adjusted EPS were both $4.11, including $1.65 of tariff refunds, while the FY2025 adjusted figures removed settlement gains.
- Operating income per $100 of net sales was $4.9 in FY2025, down from $8.4 in FY2021.
- Home sales fell from $19.5 billion in FY2022 to $15.6 billion in FY2025.
- Target's FY2025 10-K says its 2025 changes to diversity, equity and inclusion initiatives drew "consumer boycotts organized throughout 2025".
10What to watch next
What should you watch next at Target?
Next event
Q3 FY2026 results
Nov 18, 2026
Date confirmed by the company
Profit with and without refunds
Q2 FY2026 EPS of $4.11 included $1.65 of refunds, and $2.46 is the figure without them. Target's FY2026 guide of $9.90 to $10.90 includes about $1.65 and excludes future refunds.
Comparable sales and traffic
Comparable sales rose 3.8% and traffic 3.6% in Q2 FY2026, after both fell in FY2025.
Store openings and capital spending
Target opened 24 stores and spent $2.4 billion on capital projects in the first half of FY2026, against statements of more than 30 stores and about $5 billion for the year.
11Key facts
Key facts about Target
- What does Target do, and who buys from it?
- Target Corporation sells food, household essentials, clothing, home goods, beauty products and toys to shoppers, whom it calls guests. Target had 2,019 stores on Aug 1, 2026, and net sales of $104.8 billion in FY2025, the year ended Jan 31, 2026. Nearly all of those sales were in the US.
- How does Target make money?
- Target's business model is buying goods and reselling them: merchandise was 98.0% of its $104.8 billion of net sales in FY2025 (year ended Jan 31, 2026). Advertising brought in $915 million, credit card profit sharing with TD Bank Group $522 million, and other items such as marketplace commissions, memberships and rent $626 million.
- Is Target profitable?
- Yes. Target's net income was $3.7 billion in FY2025 (year ended Jan 31, 2026), and its operating income was $5.1 billion. Those figures include $593 million of settlement gains and $250 million of transformation costs before tax. Net income of $1.9 billion in Q2 FY2026 (quarter ended Aug 1, 2026) includes $752 million after tax from tariff refunds.
- What is Target's revenue by segment?
- Target reports one segment and gives revenue, but no profit, by category. In FY2025 (year ended Jan 31, 2026), food and beverage was 23.0% of net sales, household essentials 17.2%, Fun 101 (then called hardlines) 15.1%, apparel and accessories 15.0%, home 14.9%, beauty 12.6% and everything else 2.2%.
- Who owns Target?
- Target has one class of common stock, with one vote per share and 454.3 million shares on Aug 21, 2026. Its 2026 proxy lists directors and executive officers together with under 1%. Holders of 5% or more in filings include State Street with 7.9% and BlackRock with 7.2% (Dec 31, 2023 data), Vanguard Capital Management with 7.51% (Mar 31, 2026) and FMR with 5.4% (Jun 30, 2026).
- How much food and beverage does Target sell?
- Food and beverage was Target's largest category in FY2025 (year ended Jan 31, 2026), with net sales of $24.1 billion, or 23.0% of the total. That was up from $22.9 billion in FY2022 (year ended Jan 28, 2023).
- How much do household essentials and beauty bring Target?
- In FY2025 (year ended Jan 31, 2026), Target's household essentials sales were $18.0 billion (17.2% of net sales) and beauty sales were $13.2 billion (12.6%). In FY2022 (year ended Jan 28, 2023) they were $18.5 billion and $11.1 billion.
- How much apparel does Target sell?
- Target's apparel and accessories sales were $15.7 billion in FY2025 (year ended Jan 31, 2026), or 15.0% of net sales. They were $16.5 billion in FY2024 (year ended Feb 1, 2025).
- How much do home goods bring Target?
- Target's home furnishings and decor sales were $15.6 billion in FY2025 (year ended Jan 31, 2026), or 14.9% of net sales. They were $19.5 billion in FY2022 (year ended Jan 28, 2023).
- What is Target's Fun 101 category?
- Fun 101 is Target's name, from Q1 FY2026, for the category it called hardlines: electronics, video games, toys, sporting goods, entertainment and luggage. Target's sales in this category were $15.8 billion in FY2025 (year ended Jan 31, 2026), or 15.1% of net sales.
Go deeper
More detail from the same filings. Open any section.
12What it sells
12What it sells
What does Target sell?
Food and beverage ($24.1B in FY2025)
Dry and fresh groceries, snacks, drinks, deli, bakery, meat and produce, plus in-store food service, mainly Starbucks.
Household essentials ($18.0B)
Cleaning products, paper goods, over-the-counter healthcare, vitamins, baby gear and pet supplies.
Fun 101, formerly hardlines ($15.8B)
Electronics, video games, toys, sporting goods, entertainment and luggage. The name changed from Q1 FY2026.
Apparel and accessories ($15.7B)
Clothing for women, men, young adults, kids and babies, plus jewelry, accessories and shoes.
Home furnishings and decor ($15.6B)
Bed and bath, decor, school and office supplies, kitchenware, furniture, lighting and seasonal goods.
Beauty ($13.2B)
Skin and bath care, cosmetics, hair care, oral care, deodorant and shaving products.
Advertising ($915M)
Mostly Roundel, which sells ads to vendors and marketplace sellers who want to reach Target's shoppers.
Credit card profit sharing ($522M)
TD Bank Group pays Target a percentage of the profits on Target Circle credit cards.
What it does
- Does: Sells goods it buys from vendors, including its own brands such as Good & Gather and Cat & Jack
- Does: Uses its stores to fill most online orders: stores fulfilled 97.6% of merchandise sales in FY2025
- Does: Earns smaller amounts from ads, card profit sharing, marketplace commissions and memberships
What it does not do
- Does not: Does not run the pharmacies and clinics in its stores: CVS does, under a perpetual agreement
- Does not: Does not fund its credit cards: TD Bank Group underwrites, funds and owns those balances
- Does not: Does not sell much outside the US: nearly all sales are in the US
13How the money flows
13How the money flows · FY2025 (year ended Jan 31, 2026)
How does money flow through Target?
Money in
- Merchandise sales$102.7B
- Advertising revenue$915M
- Credit card profit sharing$522M
- Other (marketplace commissions, memberships, rent)$626M
- Net other income$95M
The company
Target
$104.9B came in
Money out
- Merchandise cost$68.0B
- Supply chain and digital fulfillment$7.5B
- Store and head-office costs (SG&A)$21.5B
- Depreciation and amortization outside cost of sales$2.6B
- Net interest expense$445M
- Income taxes$1.1B
- Net income$3.7B
- Shoppers, advertisers and other payers gave Target $104.8 billion of net sales in FY2025 (February 2025 to January 2026).
- Buying the goods took $68.0 billion, and moving them through the supply chain and digital fulfillment took $7.5 billion.
- Store and head-office costs took $21.5 billion, after a $593 million settlement gain and $250 million of transformation costs.
- Wear and tear on assets took $2.6 billion, leaving $5.1 billion of operating income.
- After $445 million of net interest, $95 million of other income and $1.1 billion of tax, $3.7 billion was net income.
14What it needs to run
14What it needs to run
What does Target need to run?
Stores
2,019 stores with 253.8 million square feet at Aug 1, 2026. At Jan 31, 2026, Target owned 1,546 of its 1,995 stores and the buildings of 161 more on leased land.
Supply chain
70 supply chain facilities with 72.9 million square feet at Jan 31, 2026.
Goods from abroad
About half of its merchandise comes from outside the US, and China is the largest origin. Sourcing offices sit in 13 countries.
People
About 415,000 full-time, part-time and seasonal employees at Jan 31, 2026. Starting pay for hourly store and supply chain staff ranges from $15 to $24 an hour.
15Competitors and what protects it
15Competitors and what protects it
Who does Target compete with?
Walmart
In the retail peer group in Target's FY2025 10-K, which it describes as online, general merchandise, department store, food and specialty retailers.
Costco
In the retail peer group in Target's FY2025 10-K, which also lists wholesale clubs among competitor types.
Amazon
In the retail peer group in Target's FY2025 10-K, which also lists online marketplaces among competitor types.
Kroger
In the retail peer group in Target's FY2025 10-K, which also lists supermarkets among competitor types.
CVS Health
In the retail peer group in Target's FY2025 10-K. CVS also runs the pharmacies and clinics inside Target stores.
What protects the business
Each strength is scored 1 (weak) to 5 (strong) for the business, with the reason. It is not a rating of the share.
- Store network4 of 5
Target had 2,019 stores at Aug 1, 2026, and at Jan 31, 2026 it owned 1,546 of its 1,995 stores.
- Stores as delivery hubs4 of 5
Stores fulfilled 97.6% of merchandise sales in FY2025, and two-thirds of digital sales were fulfilled through same-day options.
- Own and exclusive brands3 of 5
About 30% of merchandise sales in FY2025 came from owned and exclusive brands such as Good & Gather and Cat & Jack.
- Income beyond merchandise2 of 5
Advertising, card profit sharing and other non-merchandise lines were $2.1 billion, 2.0% of FY2025 net sales, and Target discloses no profit for them.
Weak spot
Falling sales through FY2025
Net sales fell in each of FY2023, FY2024 and FY2025. In FY2025 comparable sales (merchandise sales, leaving out newer and closed stores) fell 2.6% and traffic (number of transactions) fell 2.2%. Comparable sales then rose 5.6% and 3.8% in the first two quarters of FY2026.
16Where growth could come from
16Where growth could come from
Where could Target's growth come from?
Target said on Aug 19, 2026 that it expects FY2026 (the year ending Jan 30, 2027) net sales growth of around 5%. It expects an operating margin of around 6%, including about 0.9 points from tariff refunds. It expects EPS of $9.90 to $10.90, including about $1.65 from refunds and excluding any future refunds.
New stores
Working2,019 stores, Aug 1, 2026
Target opened 24 stores in the first half of FY2026, 17 of them in Q2. It said on Mar 3, 2026 that it planned more than 30 for the year.
Status: Working, on track against what the company said.
Digital sales
WorkingNet sales +5.3%, Q2 FY2026
Net sales rose 5.3% in the quarter ended Aug 1, 2026. Target's digital comparable sales rose 8.7%, and digitally originated sales were 19.6% of merchandise sales.
Status: Working, on track against what the company said.
Advertising (Roundel)
Working$915M in FY2025
Advertising revenue rose from $404 million in FY2022 to $915 million in FY2025. It was $279 million in Q2 FY2026, up from $217 million a year earlier.
Status: Working, on track against what the company said.
Marketplace and paid memberships
EarlyOther revenue $174M, Q2 FY2026
Other revenue, the filed line that includes marketplace commissions and memberships, was $174 million in Q2 FY2026, up from $141 million a year earlier. Target said on the Aug 19, 2026 call that gross merchandise value (GMV) on its Target Plus marketplace grew more than 40%, and that Target Circle 360 membership revenue grew over 40%. It files no dollar figure for GMV.
Status: Early, too early to judge.
Home and apparel
Behind$15.6B home, FY2025
Home sales fell from $19.5 billion in FY2022 to $15.6 billion in FY2025. Target's chief merchandising officer said on the Aug 19, 2026 call that in home and apparel "our performance is not where it needs to be", with work continuing into 2027 and beyond.
Status: Behind, behind the company's own plan.
Status compares progress with what the company itself said it would do: Working = on track against what the company said; Mixed = partly on track; Behind = behind the company's own plan; New = recently announced; Early = too early to judge.
17The company's own measures (non-GAAP)
17The company's own measures · Q2 FY2026 (quarter ended Aug 1, 2026) and FY2025 (year ended Jan 31, 2026)
What do Target's own measures show?
Official (GAAP): Diluted EPS, Q2 FY2026 (includes $1.65 of tariff refunds)
$4.11
Company's own measure: Adjusted EPS, Q2 FY2026 (also includes $1.65 of tariff refunds)
$4.11
Both figures include $1.65 a share from $994 million of tariff refunds, because Target does not remove the refunds from Adjusted EPS. Minus the refunds, EPS is $2.46, which Target says is up 20%.
Official (GAAP): Operating income, Q2 FY2026 (includes the refunds)
$2.6B
Company's own measure: Adjusted operating income, Q2 FY2026 (includes the refunds)
$2.6B
Both figures include the $994 million of tariff refunds. Minus the refunds, operating income is $1,566 million, which Target says is up about 19%.
Official (GAAP): Diluted EPS, FY2025
$8.13
Company's own measure: Adjusted EPS, FY2025
$7.57
Target removes $0.97 a share of interchange fee settlement gains and adds back $0.41 of business transformation costs.
Official (GAAP): Operating income, FY2025
$5.1B
Company's own measure: Adjusted operating income, FY2025
$4.8B
Target removes $593 million of settlement gains and adds back $250 million of transformation costs.
Official (GAAP): Net sales growth, Q2 FY2026
5.3%
Company's own measure: Comparable sales growth, Q2 FY2026
3.8%
Comparable sales cover merchandise sales, leaving out stores open less than 13 months and closed stores. Target notes that other retailers measure this differently.
Official (GAAP): Net sales growth, FY2025
−1.7%
Company's own measure: Comparable sales growth, FY2025
−2.6%
Same definition as the Q2 FY2026 figure: merchandise sales, leaving out stores open less than 13 months and closed stores.
Official (GAAP): Net sales growth, Q2 FY2026
5.3%
Company's own measure: Digital comparable sales growth, Q2 FY2026
8.7%
Target's own measure: comparable sales initiated through its apps and websites. Digitally originated sales were 19.6% of merchandise sales.
Official (GAAP): Other revenue, Q2 FY2026 ($141 million a year earlier)
$174M
Company's own measure: Target Plus gross merchandise value (GMV) growth, Q2 FY2026, stated as more than
40 %
Target's statement on the Aug 19, 2026 call. GMV is the value of goods sold on its marketplace, not Target's revenue, and Target files no dollar figure. Target earns commissions, which sit in Other revenue.
These are the company's own measures, defined by the company. They are not comparable across companies, and they are not added together. Each sits beside the nearest official (GAAP) figure.
Sources
Q2 fiscal 2026 earnings release (Form 8-K, Exhibit 99); Form 10-Q, Q2 fiscal 2026 (quarter ended Aug 1, 2026); Form 10-K, fiscal 2025 (year ended Jan 31, 2026) and 1 more
Learn: Non-GAAP measures: what a company's "adjusted" numbers leave out
18Financial strength and debt
18Financial strength · Aug 1, 2026
How much debt does Target have?
- Total debt$15.4B
- Cash and investments$5.4B
- Net debt (debt minus cash)$9.9B
- Net worth (shareholders' money)$17.8B
- Debt to equity
- 0.86×
- $ of debt for every $1 of shareholders' money
- Debt includes finance leases ($2.1 billion at Jan 31, 2026) but not operating leases ($3.8 billion at Jan 31, 2026). Net figures are a Cityfort calculation from Q2 FY2026 10-Q.
- Target repaid $1.0 billion of 2.50% notes in April 2026.
- On Aug 14, 2026 a $4.0 billion five-year credit line replaced lines of $1.0 billion and $3.0 billion. Nothing was drawn.
- Accounts payable at Aug 1, 2026 include $3.2 billion of vendor obligations eligible for early payment under supplier finance.
19Who owns it
19Who owns it · ownership as of Apr 8, 2026
Who owns Target?
- Officers and directors (as a group), shares
- 0.1%
Share classes
Holders of 5% or more
From the company's proxy statement (DEF 14A), later Schedule 13G filings and the share counts on its latest annual or quarterly report. Each holder row shows the date of its own filing.
Sources
Form 10-Q, Q2 fiscal 2026 (quarter ended Aug 1, 2026); Proxy statement (DEF 14A) for the June 10, 2026 annual meeting; Schedule 13G, Vanguard Capital Management LLC, event date Mar 31, 2026 and 3 more
Learn: How to read a proxy statement (DEF 14A): Nvidia's 2026 proxy · Form 4 insider filings: who files, the codes and the footnotes
20What it does with profit
20What it does with profit
What does Target do with its profit?
Dividend per share
$4.54FY2025
Dividend paid for each share, by financial year.
$ per share
See the numbers
Buyback · Jan 29, 2022
FY2021: paid $7.2 billion for its own shares.
$7.2B
Buyback · Jan 28, 2023
FY2022: paid $2.6 billion for its own shares.
$2.6B
Buyback · Feb 1, 2025
FY2024: paid $1.0 billion for its own shares. FY2023 had none.
$1.0B
Buyback · Jan 31, 2026
FY2025: paid $408 million for its own shares.
$408M
21Governance signals
21Governance signals
What do Target's governance filings show?
- Auditor
- Ernst & Young LLP, since 1931
- Auditor changes
- None in the period covered
- Audit qualifications
- None reported
- Related-party dealings
- The 2026 proxy's director independence review lists purchases from CDW Corporation, where director Ms. Leahy is CEO. It says the amounts were an immaterial percentage of revenues and that this is not a related-party transaction.
- Credit rating
- Moody's and S&P (as stated by Target) Long-term A2 / A; commercial paper P-1 / A-1. Target's Mar 11, 2026 10-K also listed Fitch at A and F1. (outlook not stated by Target), Aug 28, 2026
A credit rating describes the company's ability to repay debt. It is not a rating of the share.
Flags to know about
other
Securities class actions
Two purported federal securities class actions filed on Jan 31 and Feb 20, 2025 name Target and its directors. They concern disclosures on environmental, social and governance (ESG) and DEI risks and the 2023 Pride Month collection. They were consolidated, then transferred to Minnesota on Nov 14, 2025. Target says it intends to defend vigorously and reported no material developments in the quarter ended Aug 1, 2026.
other
2026 shareholder votes
On Jun 10, 2026, say-on-pay received 298.2 million votes for and 36.8 million against. A proposal for an independent chair failed, with 128.5 million for and 206.8 million against.
shares as collateral
Target stock as collateral
Named executive officers and directors may not use Target stock as collateral for any obligation.
disclosure
What Target does not report
Target discloses no profit by category, no market share and no dollar figure for digital sales or marketplace gross merchandise value. It does not estimate tariff refund claims still outstanding.
22What the market paid
22What the market paid · price as of Oct 30, 2026
What did the market pay for Target on Oct 30, 2026?
Price as of Oct 30, 2026 (shown for education; prices change daily).
Price as of Oct 30, 2026: $154.38, the close shown in Nasdaq's historical price table for Target; the shares list on the NYSE, and this price is from Nasdaq's site, not NYSE's. Times 454.3 million shares (Aug 21, 2026), that is a market value of about $70.1 billion (Cityfort calculation from the Oct 30, 2026 closing price and the Q2 FY2026 10-Q cover). P/E is price ÷ earnings per share: 16.0 on diluted EPS of $9.63 for the four quarters to Aug 1, 2026, which include $1.65 of tariff refunds, and 19.0 on FY2025 diluted EPS of $8.13. Dividends declared over those four quarters, $4.58 a share, are 2.97% of this price.
- Share price
- $154.38
- Market value (market cap)
- $70.1B
- P/E
- 16×
Source: TGT historical daily prices, October 2026 (close of Oct 30, 2026); Form 10-Q, Q2 fiscal 2026 (quarter ended Aug 1, 2026); Form 10-K, fiscal 2025 (year ended Jan 31, 2026) and 4 more
23How it got here
23How it got here
How did Target get here?
1902
Milestone
Incorporated in Minnesota
Target Corporation was incorporated in Minnesota in 1902.
1967
Milestone
Public company
Target has paid a dividend every quarter since its 1967 IPO.
2021
Milestone
Dermstore sold
Target sold Dermstore in February 2021 for $356 million in cash, with a $335 million pretax gain.
2022
Crisis
Markdowns cut profit
FY2022 operating income fell to $3.8 billion from $8.9 billion, as clearance markdowns and supply chain costs lowered margins.
2023
Crisis
Pride assortment reactions
Target's 10-K names reactions to its 2023 Pride assortment in its reputation risk factor. FY2023 sales were $107.4 billion, with a 53rd week.
2025
Crisis
Boycotts, job cuts, lower sales
Target's 10-K cites consumer boycotts in 2025 after changes to its diversity, equity and inclusion initiatives. About 1,800 headquarters roles were cut in October, and FY2025 net sales fell 1.7%.
2026
Business-model change
New CEO
Michael Fiddelke became CEO on Feb 1, 2026, and Brian Cornell became Executive Chair.
2026
Milestone
Tariff refunds
The Supreme Court ruled on Feb 20, 2026 that tariffs under an emergency powers law (IEEPA) were not authorized. Target recognized $994 million of refunds in Q2 FY2026.
2026
Milestone
Ulta Beauty shops
The Ulta Beauty shop-in-shop agreement was set to end in August 2026 by mutual agreement. Target said it would bring Target Beauty Studio to more than 600 stores.
24Sources and changes
Where every number on this page comes from
Sources (35 documents)
- S1Form 10-K, fiscal 2025 (year ended Jan 31, 2026) · Target Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Mar 11, 2026
- S2Form 10-K, fiscal 2024 (year ended Feb 1, 2025) · Target Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Mar 12, 2025
- S3Form 10-K, fiscal 2023 (year ended Feb 3, 2024) · Target Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Mar 13, 2024
- S4Form 10-K, fiscal 2022 (year ended Jan 28, 2023) · Target Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Mar 8, 2023
- S5Form 10-K, fiscal 2021 (year ended Jan 29, 2022) · Target Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Mar 9, 2022
- S6Form 10-Q, Q2 fiscal 2026 (quarter ended Aug 1, 2026) · Target Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Aug 28, 2026
- S7Form 10-Q, Q1 fiscal 2026 (quarter ended May 2, 2026) · Target Corporation (SEC EDGAR) · Tier 1: company or exchange filing · May 29, 2026
- S8Form 10-Q, Q3 fiscal 2025 (quarter ended Nov 1, 2025) · Target Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Nov 26, 2025
- S9Form 10-Q, Q2 fiscal 2025 (quarter ended Aug 2, 2025) · Target Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Aug 29, 2025
- S10Form 10-Q, Q1 fiscal 2025 (quarter ended May 3, 2025) · Target Corporation (SEC EDGAR) · Tier 1: company or exchange filing · May 30, 2025
- S11Form 10-Q, Q3 fiscal 2024 (quarter ended Nov 2, 2024) · Target Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Nov 27, 2024
- S12Q2 fiscal 2026 earnings release (Form 8-K, Exhibit 99) · Target Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Aug 19, 2026
- S13Q1 fiscal 2026 earnings release (Form 8-K, Exhibit 99) · Target Corporation (SEC EDGAR) · Tier 1: company or exchange filing · May 20, 2026
- S14Q4 and full-year fiscal 2025 earnings release (Form 8-K, Exhibit 99) · Target Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Mar 3, 2026
- S15Q3 fiscal 2025 earnings release (Form 8-K, Exhibit 99) · Target Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Nov 19, 2025
- S16Q2 fiscal 2025 earnings release (Form 8-K, Exhibit 99) · Target Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Aug 20, 2025
- S17Q1 fiscal 2025 earnings release (Form 8-K, Exhibit 99) · Target Corporation (SEC EDGAR) · Tier 1: company or exchange filing · May 21, 2025
- S18Q4 and full-year fiscal 2024 earnings release (Form 8-K, Exhibit 99) · Target Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Mar 4, 2025
- S20Proxy statement (DEF 14A) for the June 10, 2026 annual meeting · Target Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Apr 27, 2026
- S21Schedule 13G, FMR LLC, event date Jun 30, 2026 · FMR LLC (SEC EDGAR) · Tier 1: company or exchange filing · Aug 6, 2026
- S22Schedule 13G, Vanguard Capital Management LLC, event date Mar 31, 2026 · Vanguard Capital Management LLC (SEC EDGAR) · Tier 1: company or exchange filing · Apr 30, 2026
- S23Schedule 13G/A No. 14, The Vanguard Group, event date Mar 13, 2026 · The Vanguard Group (SEC EDGAR) · Tier 1: company or exchange filing · Mar 27, 2026
- S24Form 8-K, Item 5.02: next CEO appointed · Target Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Aug 20, 2025
- S25Form 8-K, Item 5.02: CEO and Executive Chair compensation · Target Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Feb 5, 2026
- S26Form 8-K, Item 5.02: COO appointed, Chief Commercial Officer steps down · Target Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Feb 10, 2026
- S27Form 8-K, Item 2.02: executive leadership changes press release · Target Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Feb 11, 2026
- S28Form 8-K, Items 1.01, 1.02, 2.03: $4.0 billion five-year credit agreement · Target Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Aug 14, 2026
- S29Form 8-K, Items 5.02, 5.07: 2026 annual meeting vote results · Target Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Jun 12, 2026
- S32Q2 fiscal 2026 earnings call transcript (Aug 19, 2026) · Target Corporation (LSEG StreetEvents transcript on company IR) · Tier 1: company or exchange filing · Aug 19, 2026
- S342026 Financial Community Meeting and Q4 fiscal 2025 call transcript (Mar 3, 2026) · Target Corporation (LSEG StreetEvents transcript on company IR) · Tier 1: company or exchange filing · Mar 3, 2026
- S35Q3 fiscal 2025 earnings call transcript (Nov 19, 2025) · Target Corporation (LSEG StreetEvents transcript on company IR) · Tier 1: company or exchange filing · Nov 19, 2025
- S362025 Financial Community Meeting and Q4 fiscal 2024 call transcript (Mar 4, 2025) · Target Corporation (LSEG StreetEvents transcript on company IR) · Tier 1: company or exchange filing · Mar 4, 2025
- S37TGT historical daily prices, October 2026 (close of Oct 30, 2026) · Nasdaq, Inc. (TGT lists on NYSE) · Tier 1: company or exchange filing · Oct 30, 2026
- S38Target investor events page: Q3 2026 earnings call date · Target Corporation · Tier 3: context only · Nov 1, 2026
- S39Schedule 13G/A, The Vanguard Group, event date Sep 30, 2025 · The Vanguard Group (SEC EDGAR) · Tier 1: company or exchange filing · Oct 31, 2025
Changes to this page (v2 · Nov 1, 2026)
- v2 · Nov 1, 2026Standardized calculation labels to name the filing they come from; no figures changed. (editorial update, Q2 FY2026)
- v1 · Nov 1, 2026First version, through Q2 FY2026 (quarter ended Aug 1, 2026). (first version)
Numbers come only from tier 1 and tier 2 sources. Read how we research.
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