Target Q2 sales beat; raises annual sales forecast
TGT•Full-year outlook raised
- Target raises full-year net sales growth guidance to around 5%, up from prior range.
- Company sees full-year 2026 operating income margin rate around 6%, including tariff refund benefit.
- Target updates full-year GAAP and adjusted EPS guidance to $9.90-$10.90, including tariff refund.
Q2 results beat expectations
- U.S. retailer's Q2 net sales rose 5.3%, beating analyst expectations.
- EPS more than doubled, aided by a $994 million tariff refund benefit.
- Net income for Q2 beat analyst expectations.
Sales drivers and analyst coverage
- TARIFF REFUND - Q2 results included a $994 million benefit from tariff refunds, boosting gross margin and net earnings.
- BROAD-BASED SALES GROWTH - Co said topline strength was broad-based across sales channels, demographics, merchandise categories, and across the quarter.
- DIGITAL AND SAME-DAY DELIVERY - Digital comparable sales grew 8.7%, led by more than 25% growth in same-day delivery.
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 13 "strong buy" or "buy", 24 "hold" and 3 "sell" or "strong sell". The average consensus recommendation for the discount stores peer group is "buy."
