Target sales top $26 billion after 5.3% increase

• Target reported second-quarter 2026 net sales of $26.5 billion, up 5.3% year over year, with comparable sales rising 3.8%.
• Diluted EPS increased to $4.11 from $2.05, supported partly by $994 million in tariff refunds.
• Target raised fiscal 2026 guidance for sales growth of about 5%, operating margin around 6%, and EPS of $9.90–$10.90.

Target (NYSE:TGT) reported second-quarter 2026 net sales of $26.5 billion, up 5.3% year over year, as comparable sales increased 3.8% with traffic growth of 3.6%.

The retailer’s store comparable sales rose 2.7% and digital comparable sales increased 8.7%, with same-day delivery growth exceeding 25% compared with the prior-year period.

Target reported GAAP and adjusted diluted EPS of $4.11 compared with $2.05 a year earlier, including $994 million in tariff refunds that contributed $1.65 per share and 3.7 percentage points to the company’s 9.6% operating margin.

Looking ahead, Target raised its fiscal 2026 outlook to approximately 5% net sales growth, an operating margin around 6% including about 90 basis points from tariff refunds, and GAAP and adjusted EPS of $9.90–$10.90.

Non-merchandise sales increased 20.1%, supported by Roundel advertising, Target Circle 360 memberships and the Target+ marketplace, while capital expenditures reached $1.4 billion in the quarter.

Target reported a trailing 12-month return on invested capital of 15.4%, paid $518 million in dividends during the quarter and did not repurchase shares.