Target Q2 FY26 earnings
Revenue $26.5B, up 5% from a year ago. Net income $1.9B.
Target's revenue grew 5% to $26.5B. Net income moved far more: $1.9B, 7.1% of revenue, up 101% from a year earlier. The release credits one-time IEEPA tariff refunds for much of that jump. Food & beverage, the largest category broken out, brought $6.0B, up 7%.
Advertising passed credit-card profit sharing in 2024; $915M by 2025.
Target's advertising line inside net sales passed its credit-card profit sharing in 2024 and reached $915M by 2025. Two footnotes travel with the card, as filed: 2023 was a 53-week year, and some Roundel ad revenue nets into costs rather than sales.
Home furnishings & decor fell to $15.6B by 2025; Beauty rose to $13.2B.
Between 2022 and 2025, Home furnishings & decor fell to $15.6B while Beauty rose to $13.2B. Both drawn years are 52 weeks; the small Other merchandise line is left off the drawing.
Where the revenue came from
| Segment | Amount | % of revenue% | Y/Y |
|---|---|---|---|
| Food & beverage | $6.0B | 22.6% | +7% |
| Household essentials | $4.6B | 17.4% | +4% |
| Apparel & accessories | $4.1B | 15.4% | +0% |
| Hardlines | $3.9B | 14.7% | +11% |
| Home furnishings & décor | $3.7B | 13.8% | +0% |
| Beauty | $3.6B | 13.7% | +7% |
| Advertising revenue | $279M | 1.1% | +29% |
| Other | $174M | 0.7% | +23% |
| Credit card profit sharing | $139M | 0.5% | +4% |
| Other merchandise sales | $48M | 0.2% | +12% |
The quarter, line by line
| Line | Amount | % of revenue% | Y/Y |
|---|---|---|---|
| Revenue | $26.5B | +5% | |
| Cost of revenue | $17.6B | 66.3% | -2% |
| Gross profit † | $8.9B | 33.7% | |
| Operating income | $2.6B | 9.6% | +94% |
| Pretax income | $2.5B | 9.3% | +102% |
| Income tax | $582M | 2.2% | +106% |
| Net income | $1.9B | 7.1% | +101% |
Effective tax rate: 23.7%. That is tax as a share of pretax income. The 2.2% in the column above is tax as a share of revenue, which is not a tax rate.
† The filing doesn't print this line. We calculated it from the filed figures; it adds up to the dollar.
The last 8 quarters
| Quarter ended | Revenue | Net income | Net margin |
|---|---|---|---|
| Aug 1, 2026 | $26.5B | $1.9B | 7.1% |
| May 2, 2026 | $25.4B | $781M | 3.1% |
| Jan 31, 2026 | $30.5B | $1.0B | 3.4% |
| Nov 1, 2025 | $25.3B | $689M | 2.7% |
| Aug 2, 2025 | $25.2B | $935M | 3.7% |
| May 3, 2025 | $23.8B | $1.0B | 4.3% |
| Feb 1, 2025 | $30.9B | $1.1B | 3.6% |
| Nov 2, 2024 | $25.7B | $854M | 3.3% |