This morning, Target announced our second quarter 2026 earnings. Check out the full results and read on for a snapshot.
We’re pleased with another solid quarter and Q2 results further reinforce our confidence in our strategy
Net Sales
Comparable Sales
Traffic
GAAP & Adjusted1 EPS
Which included the impact of tariff refunds2, and is up 20% year-over-year when excluding this impact
Q2 results reflect continued progress and broad-based strength across multiple dimensions of our business
- Net sales in all six core merchandising categories grew versus a year ago, with double-digit growth in Fun101 and high single-digit growth in Food & Beverage and Beauty.
- Stores comp sales were up 2.7%, and digital comp sales grew 8.7%, driven by more than 25% growth in Same-Day Delivery.
- Non-merchandise sales grew more than 20%, reflecting continued strength in Roundel, Target Circle 360 and Target Plus.
Guests are responding as we make changes that further define Target’s unique lane in retail — and there’s more to come
Leading with style, design and value to drive relevance and growth
We transformed nearly half of our center-store grocery experience, adding more space for fresh, snacks, bakery and emerging categories. Post-transition, snacks sales were up 15% year-over-year.
Our focus on innovation and Q1 investments in health and wellness continue to drive momentum, with health continuing to grow year-over-year in Q2.
Within Fun101, Lego, plush, and Heyday electronics led the way with double-digit comps. At the end of Q2, we completely reinvented the shopping experience to cement our position as a destination for busy families in key areas like toys, gadgets and pop culture.
Busy families are loving the increased pace of exclusive partnerships across our business. LoveShackFancy was our biggest limited-time-only collaboration ever and Pokémon drove record guest engagement.
Delivering value for busy families while making shopping easier, faster and more personalized
- We’ve reduced prices on more than 10,000 items over the last year alone, and 95% of our school supplies assortment is priced at or below last year’s retail prices.
- Key reliability metrics reached multi-year highs in Q2, with our highest availability ever achieved on top items.
- Overall guest satisfaction scores continue to improve, building on momentum from Q1.
- Digital traffic from external AI platforms like OpenAI and Google is growing more than 3.5x the industry compared to a year ago as we continue to shape the future of commerce.
- AI-powered Teacher and College Wish List recommendations and more personalized content are driving digital conversion during a key season for busy families.
Strengthening our team and communities
- We opened 17 new stores in Q2 for a total of 24 year-to-date, creating more than 3,500 jobs in communities across the country.
- We’ve completed six Bullseye Builds this year, combining Target’s design expertise, team member volunteerism and local partnerships to revitalize community spaces.
- Target served as a platinum partner and official tennis sponsor of the 2026 Special Olympics in Minneapolis.
Looking Ahead
There’s more work ahead in Q3 and beyond
- We’re focused on delivering style, newness and value for busy families throughout the remainder of the back-to-school and back-to-college season.
- We’ll debut Target Beauty Studio in more than 600 stores.
- We’ll continue ongoing enhancements within apparel and home, including upcoming reinventions of kids’ home and bedding.
Our revised outlook reflects ongoing momentum
For the full year, we are now planning for net sales growth in a range around 5%.
We expect full-year EPS in a range of $9.90 to $10.90, which includes second quarter tariff refund benefits of approximately $1.65.3
1 Adjusted EPS is a non-GAAP financial measure most directly comparable to GAAP EPS. Adjusted EPS is reconciled to GAAP EPS in our Q2 2026 earnings release posted on our investor relations website. GAAP and Adjusted EPS increased 100 percent year-over-year, including tariff refund impacts.
2 During the three and six months ended August 1, 2026, we recognized $994 million related to International Emergency Economic Powers Act (IEEPA) tariff refunds ("tariff refunds") received during the second quarter of 2026 as a reduction of Cost of Sales. Note (a) to the Operating Metrics table in our Q2 2026 earnings release posted on our investor relations website provides more information about the impact of tariff refunds.
3 The Company's guidance excludes any potential future tariff refunds.
Statements in this document about our future financial and operational performance, including our full-year financial guidance, and our strategy for growth are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Please see our Q2 earnings release and our SEC filings for risks and uncertainties that could cause Target’s results to differ materially from what was expected as of the date of this document, August 19, 2026.
