Target Profit Doubles as Tariff Refunds Boost Quarterly Results

The Minneapolis-based retailer saw net sales climb 5.3% to $26.5 billion for the quarter ending August 1, 2026. Comparable sales grew 3.8%, fueled by a 3.6% increase in store traffic and a surge in digital performance, where same-day delivery services expanded by more than 25%. Even excluding the windfall from tariff refunds, the company reported a 20% year-over-year increase in earnings per share.

CEO Michael Fiddelke credited the results to the company's focus on price competitiveness and design, noting that Target has lowered prices on more than 10,000 frequently purchased items over the past year. While non-merchandise revenue—including ad sales through its Roundel platform and Target Circle 360 memberships—grew by over 20%, the company faced higher operational costs, including increased compensation for field teams.

Looking ahead, Target raised its full-year sales growth expectations to approximately 5%. The company projects an operating income margin of roughly 6% for the year, factoring in the second-quarter tariff benefits. Investors are eyeing an updated full-year earnings guidance range of $9.90 to $10.90 per share, reflecting a more optimistic outlook for the remainder of the fiscal year.