Target reported second-quarter fiscal 2026 results that beat the Zacks Consensus Estimate on both the top and bottom lines, prompting management to raise its full-year sales and earnings outlook. Adjusted earnings came in at $4.11 per share, up from $2.05 a year earlier and above the consensus estimate of $2.30, with the quarter including tariff refund benefits of $1.65 per share; excluding those refunds, earnings per share rose 20% year over year to $2.46. Net sales reached $26,539 million, surpassing the consensus estimate of $26,129 million and rising 5.3% from $25,211 million, while comparable sales increased 3.8% against a decline of 1.9% in the year-ago quarter. Gross margin expanded 470 basis points to 33.7%, including a 370-basis-point benefit from $994 million of tariff refunds, and operating income soared 94.4% to $2,560 million. For fiscal 2026, Target now expects net sales growth of around 5%, an operating income margin rate of about 6%, and adjusted earnings per share of $9.90 to $10.90, a range that includes the second-quarter tariff refund benefits but excludes any potential future refunds.
Target CorporationTarget beat Q2 estimates on both lines and raised its fiscal 2026 sales and earnings outlook.
