Target Q2 FY2026: sales up 5.3%, EPS doubles on $994 million tariff refund
Target's second quarter looked spectacular — EPS doubled to $4.11 — but $994 million of one-time tariff refunds did most of the work. Strip those out and EPS still rose 20 percent, comparable sales grew 3.8 percent and gross margin expanded about 100 basis points. Management raised full-year sales guidance and its EPS range to $9.90 to $10.90, which still includes the refund benefit.
1 · Expected vs. Actual
Free preview belowGAAP and adjusted EPS of $4.11 was 100.3 percent above last year's $2.05, but $1.65 of that came from tariff refunds worth $994 million pretax and $752 million after tax. Excluding refunds, EPS was still up 20 percent year over year. Operating income of $2.56 billion rose 94.4 percent and the 9.6 percent operating margin contained 3.7 percentage points from refunds, while the effective tax rate was 23.7 percent against 23.2 percent last year.
Net sales of $26.54 billion rose 5.3 percent from $25.21 billion a year ago, and revenue grew in all six core merchandising categories, with double-digit growth in Fun 101 (Hardlines). Comparable sales rose 3.8 percent on a 3.6 percent increase in traffic, with digital comps up 8.7 percent against 2.7 percent for stores. Non-merchandise sales grew 20.1 percent, led by advertising, membership and marketplace revenue.
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Figures on this page come from the company's original SEC filings. The analysis is generated automatically and checked against validation rules, but may still contain errors or omissions. Not investment advice. · Generated 2026-09-17
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