2025 Annual Report Target Corporation

To my fellow shareholders,

I’m grateful for the opportunity to lead this team and this company, as we work together to write a new chapter at Target. In my first year as CEO, my focus is on getting Target back to growth by playing our own game and making big changes to delight our guests.

Over the last few years, our results have been far from what we expect to deliver over time. However, in 2025, I’m proud of how our team performed in the face of multiple challenges and positioned our business for profitable growth beginning this year. We know we have work to do, and that work is already underway. In recent months, we’ve engaged in a comprehensive review of our business, which reinforced our understanding of the distinct role Target plays in consumers’ lives and the categories where we have the right to win.

That clarity is driving a refreshed strategy. We know we’re at our best when we deliver the style, design, experience and value busy families crave, and when we do it with consistency. Our standard is to delight guests every time they shop with us.

Delight begins with sharp pricing, strong in-stocks and fast fulfillment. It’s also the joy of finding something new and the confidence that the experience will be easy to shop, inspiring and friendly, every time. That’s the bar we’re setting for ourselves, and it’s the filter guiding the choices we’re making.

And we’re moving with urgency. In 2026, guests will see and feel more change in what we sell and how we sell it than they have in a decade. This is our path to growth, and it is anchored in four priorities we’re advancing in parallel:

Lead with merchandising authority.

We’re doubling down on curation that blends style with value and offers a trend-forward point of view guests can trust. That means accelerating momentum in categories where we’ve had success, leaning into categories where we have a clear right to win and bringing even more newness to our full assortment. This is how we earn more trips, build bigger baskets and strengthen loyalty over time.

Elevate the guest experience.

Product is the start, but experience is what turns a trip into a relationship. We’re raising our standards in stores by strengthening end-to-end reliability, investing in training and support for our teams, and continuing to improve product availability and presentation. At the same time, we’re building an even more welcoming digital front door, so discovery is more personal, more relevant and more connected to the moments that matter for busy families.

Accelerate technology.

We’re investing in technology and leveraging AI to make shopping more joyful and support our teams. That includes enhancing search, powering personalization through our loyalty ecosystem, strengthening our media and marketplace businesses and reducing friction for our store teams so they can spend more time serving guests.

Strengthen our team and communities.

Team and community will always sit at the heart of Target. We will continue to invest in our team through pay, benefits and training, so that every team member can grow their career with us. And we remain committed to showing up in communities through meaningful action, including the more than one million hours our team volunteered last year and the 5% in profits we give back to communities in products, cash and through the Target Foundation every year.

A clear strategy also means clear choices about where we will invest. This year, we’re planning more than $2 billion in incremental investments across the business, including more than a $1 billion increase in capital expenditures from 2025 and another $1 billion in additional operating investments, all in service of accelerating growth.

I’m confident in the road ahead because Target has something rare in retail: a powerful brand, a differentiated strategy and an exceptional team. We’re excited to get to work, execute our plans and deliver results. And we’ll keep listening, learning and adjusting as we go.

Thank you for your continued investment in Target. We’re focused, we’re moving with urgency and we’re committed to delivering the next chapter of growth for Target and creating value for you, our shareholders.

Michael J. Fiddelke
Chief Executive Officer