Target | 10-Q: Q2 2026 Earnings Report

Target Corporation reported Q2 2025 net sales of $25.2 billion, down 0.9% from the prior year, with comparable sales declining 1.9%. Operating income decreased 19.4% to $1.3 billion, while net earnings fell 21.5% to $935 million. Diluted earnings per share dropped to $2.05 from $2.57 year-over-year.The retailer's performance reflected challenging consumer spending patterns, with store-originated comparable sales declining 3.2%, partially offset by a 4.3% increase in digitally originated sales. Gross margin rate contracted to 29.0% from 30.0%, primarily due to higher markdown rates and purchase order cancellation costs, while SG&A expense rate increased slightly to 21.3%.The company maintained its financial strength with $4.3 billion in cash and cash equivalents. Target continued its commitment to shareholder returns, paying quarterly dividends of $1.12 per share and deploying capital for share repurchases. Digital sales represented 18.9% of total merchandise sales, with stores fulfilling 97.7% of all orders through various fulfillment options.

Target Corporation reported Q2 2025 net sales of $25.2 billion, down 0.9% from the prior year, with comparable sales declining 1.9%. Operating income decreased 19.4% to $1.3 billion, while net earnings fell 21.5% to $935 million. Diluted earnings per share dropped to $2.05 from $2.57 year-over-year.The retailer's performance reflected challenging consumer spending patterns, with store-originated comparable sales declining 3.2%, partially offset by a 4.3% increase in digitally originated sales. Gross margin rate contracted to 29.0% from 30.0%, primarily due to higher markdown rates and purchase order cancellation costs, while SG&A expense rate increased slightly to 21.3%.The company maintained its financial strength with $4.3 billion in cash and cash equivalents. Target continued its commitment to shareholder returns, paying quarterly dividends of $1.12 per share and deploying capital for share repurchases. Digital sales represented 18.9% of total merchandise sales, with stores fulfilling 97.7% of all orders through various fulfillment options.