Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Target reported Q1 FY2026 net sales growth of 6.7% to $25.4B, but GAAP diluted EPS fell 24.7% to $1.71 because the prior-year period included $593M of pretax interchange-fee settlement gains, while adjusted EPS rose 31.6%. Source: 10-Q Item 2 MD&A, pp.14, 19-20
Revenue
$25.44B
+6.70% YoY
EPS (Diluted)
$1.71
-24.67% YoY
Operating Income
$1.14B
-22.89% YoY
Source: SEC XBRL
Target (TGT) reported Q1 FY2026 revenue of $25.44B, up 6.7% year over year. Operating margin was 4.5%, down 1.7 points from 6.2% a year earlier. Operating cash flow was $716M, up 160.4% year over year. TGT's fiscal Q1 FY2026 corresponds to calendar Q2 2026.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Sep 2026 | 2.46 | 2.35 | Beat +4.5% |
| Jun 2026 | 1.71 | 1.48 | Beat +15.8% |
| Mar 2026 | 2.44 | 2.18 | Beat +12.1% |
| Dec 2025 | 1.78 | 1.74 | Beat +2.6% |
Compiled by AI from 10-Q Item 2 of this filing
Net sales increased 6.7% to $25.4B, supported by a 5.6% comparable-sales increase, including 4.4% traffic growth and a 1.1% increase in average transaction amount. Non-merchandise sales rose 24.6%, primarily reflecting growth in the Roundel digital advertising business; digitally originated comparable sales increased 8.9%.
Source: 10-Q Item 2 MD&A
GAAP operating income declined 22.9% to $1.1B and GAAP diluted EPS declined to $1.71 from $2.27, as Q1 FY2025 included $593M of pretax net gains from interchange-fee settlements. Excluding that prior-year item, adjusted operating income increased 29.1% to $1.1B and adjusted diluted EPS increased 31.6% from $1.30.
Source: 10-Q Item 2 MD&A
Gross margin increased to 29.0% from 28.2%, helped by lower markdown rates, growth in advertising and other revenues, supply-chain productivity, and higher sales leverage, partly offset by higher product costs. The reported SG&A rate rose to 21.9% from 19.3%; the prior-year rate benefited by 2.5 percentage points from interchange-fee settlements, while the adjusted SG&A rate increased 0.2 percentage points to 21.9%.
Source: 10-Q Item 2 MD&A
About one-half of Target's merchandise is sourced outside the U.S., directly or through vendors, and China is its largest import source. Target had received no IEEPA tariff refunds and recorded no receivable as of May 2, 2026; subsequent refunds were not material, and management said it could not estimate the ultimate financial effect because of uncertainty over process, timing, amounts, and possible appeals.
Source: 10-Q Item 2 MD&A
Operating cash flow increased to $0.7B from $0.3B, primarily due to higher accounts-payable leverage and lower inventory, partly offset by lower earnings and higher income-tax payments. Investing cash requirements rose to $1.0B due to higher capital expenditures, Target paid $516M of dividends, repaid $1.0B of unsecured debt in April 2026, and made no share repurchases during the quarter.
Source: 10-Q Item 2 MD&A
Compiled by AI from this SEC filing · 0 high, 1 medium, 3 low
Operating income declined 22.9% year over year to $1.135B and net income declined 24.6% to $781M. The financial data show SG&A expense rose 21.2%, substantially faster than 6.7% revenue growth, which may make operating-margin recovery more difficult if this cost-growth relationship persists.
Source: 10-Q Income Statement (XBRL)
Current assets were $18.065B versus current liabilities of $19.384B, producing a current ratio of 0.93x. This does not establish a liquidity shortfall, but it indicates that short-term obligations exceeded short-term assets at the reporting date.
Source: 10-Q Balance Sheet (XBRL)
Operating cash flow was $716M, while investing cash flow was an outflow of $1.033B during Q1 FY2026. Free cash flow cannot be determined from the provided XBRL data because capital expenditures are not separately provided, but the reported operating cash flow was below total investing outflows.
Source: 10-Q Cash Flow Statement (XBRL)
Total assets increased 3.2% year over year to $58.010B, while reported ROA was 1.35% and net income declined 24.6%. This combination indicates that profitability growth did not keep pace with the asset base during the reported period.
Source: 10-Q Balance Sheet and Income Statement (XBRL)
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 25.44 $B | 23.85 $B | +6.70% |
Cost of Revenue $B | 18.06 $B | 17.13 $B | +5.45% |
Operating Income $B | 1.14 $B | 1.47 $B | -22.89% |
Net Income $B | 0.78 $B | 1.04 $B | -24.61% |
EPS (Basic) $ | 1.72 $ | 2.28 $ | -24.56% |
EPS (Diluted) $ | 1.71 $ | 2.27 $ | -24.67% |
SG&A Expense $B | 5.56 $B | 4.59 $B | +21.15% |
Answers draw on this SEC filing and the data on this page
Target's Q2 FY2026 results were boosted by a $994 million tariff refund, with net sales up 5.3% and diluted EPS up 100.5% to $4.11, though underlying operating income growth excluding the refund was about 19%.
Target Corporation reported a challenging FY2025, with revenue declining 1.7% to $104.8B and net income falling 9.4% to $3.7B, reflecting persistent pressure on consumer discretionary spending and margin compression.
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