Target Beats Earnings Estimates but Stock Falls

Target reported stronger-than-expected second-quarter results on August 19, 2026, beating Wall Street forecasts on both revenue and profit while raising its full-year outlook for the second time this year. The retailer’s performance was driven by broad sales growth and a significant boost from tariff refunds, though its stock dipped in premarket trading despite the positive results.

Total sales for the quarter rose 5.3% to $26.54 billion, surpassing the consensus estimate of $26.13 billion. Adjusted earnings per share came in at $4.11, well above the forecast of $2.34. The company also lifted its full-year sales growth forecast to approximately 5%, up from the 4% projection issued in May and the initial 2% outlook at the start of the year. Full-year adjusted EPS guidance was increased to a range of $9.90 to $10.90, compared to the prior range of $7.50 to $8.50. This updated EPS forecast includes a $1.65 per share benefit from tariff refunds received in the second quarter.

Comparable sales grew 3.8%, exceeding expectations. The hardlines category, which includes toys and electronics, was a standout performer with growth of more than 10% year-over-year. Sales increased across all...