Target Corporation delivered a strong second quarter 2026 performance, beating analyst expectations on both the top and bottom lines. Net sales reached $26.5 billion, while GAAP and Adjusted EPS of $4.11 included a significant $1.65 per share benefit from one-time tariff refunds. Excluding these refunds, the company still demonstrated robust underlying growth with a 20% year-over-year increase in adjusted earnings.
Key Highlights
- Comparable sales grew 3.8%, driven by a 3.6% increase in comparable traffic and growth across all six core merchandising categories.
- Store comparable sales rose 2.7%, while digital comparable sales surged 8.7%, led by more than 25% growth in same-day delivery services.
- The company recognized $994 million in pretax IEEPA tariff refunds as a reduction in cost of sales, boosting the operating income margin to 9.6%.
- Non-merchandise sales, including Roundel advertising and Target Circle 360 memberships, grew by more than 20%.
- Full-year guidance was raised, with net sales growth now expected to be around 5% and a higher EPS range of $9.90 to $10.90.