Target hikes FY outlook after strong Q2 and tariff uplift

19th Aug 2026 13:55

(Sharecast News) - Target posted another strong set of quarterly numbers on Wednesday, with tariff refunds giving earnings an additional lift and prompting the retailer to raise its full‑year guidance as its turnaround continued to take hold.

For the second quarter, Target said revenues came in at $26.54bn, ahead of the $26.14bn expected, while net income jumped to $1.88bn or $4.11 per share, up from $935m or $2.05 a year earlier.

It also noted that the quarter included a $752m boost to net earnings - $1.65 on a per share basis - from tariff repayments, with gross margins and operating income also benefiting from a $994m pre-tax uplift.

Comparable sales rose 3.8%, beating forecasts, with digital comparatives up 8.7% as same‑day delivery grew more than 25%, while net sales increased 5.3%, with Target highlighting broad‑based strength across categories.

Target also raised its full‑year net sales growth guidance to around 5%, and now expects full‑year earnings per share of $9.90 to $10.90 including tariff refunds. Excluding the repayment, EPS was projected at $8.25 to $9.25, up from a prior $7.50 to $8.50 range.

"We're encouraged by the progress made so far, and we're also clear-eyed about the important work still ahead," said chief executive Michael Fiddelke. "Q2 is an important step forward in the plan we laid out earlier this year to open a new chapter of growth for Target. What you saw from us this quarter reflects the level of change we knew would be needed to put our strategy in motion."

As of 1345 BST, Target shares were up 0.87% in pre-market trading at $153.80 each.

Reporting by Iain Gilbert at Sharecast.com