Target Q2 2026 earnings beat estimates, raises full-year outlook

Target reported stronger-than-expected second-quarter 2026 results on August 19, signaling that its turnaround strategy is gaining traction as the company raised its full-year outlook. The retailer announced net sales of $26.54 billion for the quarter ended August 1, a 5.3 percent increase from the prior year, easily topping analyst estimates. Comparable sales, a key metric for retailers, rose 3.8 percent, with store traffic up 3.6 percent and digital comparable sales climbing 8.7 percent.

The financial performance was bolstered by a $994 million pretax benefit from tariff refunds, which added $1.65 per share to earnings. On a GAAP basis, diluted earnings per share were $4.11, nearly double the $2.05 reported a year earlier. Even excluding the tariff windfall, adjusted earnings per share were $2.46, surpassing the consensus estimate of $2.33. The company’s gross margin improved to 33.7 percent from 29 percent a year ago, with underlying operational strength contributing to the gain even without the one-time refund.

CEO Michael Fiddelke, who took the helm earlier this year, attributed the results to strategic changes across merchandise and operations. “Second quarter results...