Form 8-K

8-K — TARGET CORP

Accession: 0000027419-26-000034

Filed: 2026-08-19

Period: 2026-08-19

CIK: 0000027419

SIC: 5331 (RETAIL-VARIETY STORES)

Item: Results of Operations and Financial Condition

Item: Financial Statements and Exhibits

Documents

8-K — tgt-20260819.htm (Primary)

EX-99 (a2026q2ex-99.htm)

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XML — IDEA: XBRL DOCUMENT (R1.htm)

8-K

8-K (Primary)

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): August 19, 2026

Target Corporation

(Exact name of registrant as specified in its charter)

Minnesota 1-6049 41-0215170

(State or other jurisdiction of incorporation) (Commission File Number) (IRS Employer Identification No.)

1000 Nicollet Mall, Minneapolis, Minnesota 55403

(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: (612) 304-6073

Not Applicable

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class Trading Symbol(s) Name of each exchange on which registered

Common stock, par value $0.0833 per share TGT New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Item 2.02 Results of Operations and Financial Condition.

On August 19, 2026, Target Corporation issued a News Release containing its financial results for the three months ended August 1, 2026. The News Release is attached hereto as Exhibit 99.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

Target Corporation’s News Release dated August 19, 2026, containing its financial results for the three months ended August 1, 2026.

104 Cover Page Interactive Data File (formatted as inline XBRL).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

TARGET CORPORATION

Date: August 19, 2026 By: /s/ Jim Lee

Name: Jim Lee

Title: Executive Vice President and Chief Financial Officer

EX-99

Filename: a2026q2ex-99.htm · Sequence: 2

Document

Exhibit 99

FOR IMMEDIATE RELEASE

Contacts: John Hulbert, Investors, (612) 761-6627

Joe Poulos, Media, (612) 696-3400

Target Corporation Reports Second Quarter Earnings

•Second quarter net sales grew 5.3 percent over last year, with comparable sales growth of 3.8 percent driven by a 3.6 percent increase in comparable traffic.

◦On a two-year basis, second quarter Net Sales compounded annual growth rate was 2.1%, a 30 basis point acceleration to prior quarter.

◦Topline strength was broad-based across sales channels, demographics, merchandise categories, and across the quarter.

▪Store comparable sales grew 2.7 percent, and Digital comparable sales grew 8.7 percent, led by more than 25 percent growth in same-day delivery.

▪Net sales in all six core merchandising categories grew versus a year ago with double-digit growth in Fun 101 and high single-digit growth in Food & Beverage and Beauty.

▪The company continues to focus on a differentiated retail experience, investing in style, design, newness, and in value, having lowered prices on more than 10,000 items over the past year.

◦Non-merchandise sales grew over 20 percent, reflecting strong growth in Roundel ad revenue, Target Circle 360 membership revenue, and the Target+ marketplace.

•Second quarter GAAP and Adjusted EPS1 was $4.11, compared with prior-year GAAP and Adjusted EPS of $2.05, an increase of 100 percent, which included tariff refund2 benefits of $1.65 for Q2 2026. GAAP and Adjusted EPS increased 20 percent year-over-year, excluding tariff refunds.

For additional media materials, please visit:

https://corporate.target.com/news-features/article/2026/08/q2-2026-earnings

MINNEAPOLIS (August 19, 2026) – Target Corporation (NYSE: TGT) today announced its second quarter 2026 financial results.

– more –

1 Adjusted EPS, Adjusted selling, general and administrative (SG&A) expenses, Adjusted SG&A expense rate, Adjusted operating income, and Adjusted operating income margin rate, non-GAAP financial measures, exclude the impact of certain discretely managed items, when applicable. See the tables of this release for additional information.

2 During the three and six months ended August 1, 2026, we recognized $994 million related to International Emergency Economic Powers Act (IEEPA) tariff refunds ("tariff refunds") received during the second quarter of 2026 as a reduction of Cost of Sales. Note (a) to the Operating Metrics table provides additional information about the impact of tariff refunds.

Target Corporation Reports Second Quarter Earnings — Page 2 of 13

The Company reported second quarter GAAP and Adjusted earnings per share (EPS) of $4.11, compared with prior-year GAAP and Adjusted EPS of $2.05. Second quarter 2026 results include $994 million of pretax tariff refund benefits within gross margin and operating income. These gains contributed $752 million to net earnings and $1.65 to both GAAP and Adjusted EPS. The attached tables provide reconciliations of non-GAAP to GAAP measures. All earnings per share figures are calculated on a diluted basis.

“Second quarter results build on the encouraging momentum we saw in the first quarter, giving us increasing confidence that our strategy is resonating with our guests and strengthening our leadership position in style, design, and value,” said Michael Fiddelke, Chief Executive Officer of Target. “Over the past year, we've reduced prices on more than 10,000 frequently purchased items as part of our commitment to delivering outstanding value every day, while continuing to invest in newness, convenience, and an elevated shopping experience. While there's still meaningful work ahead, we're encouraged by the progress we're making and remain focused on executing with discipline, staying agile in a dynamic operating environment, and investing in our team and capabilities to drive sustainable, profitable growth over the long term.”

Guidance3

Given our performance through the first half of the year, the Company has the following updated expectations for 2026:

•Full-year net sales growth in a range around 5 percent, one percentage point higher than the prior guidance range.

•Full-year 2026 operating income margin rate in a range around 6 percent, including approximately 90 basis points of benefit from Q2 tariff refunds. Excluding tariff refunds, full-year operating income margin rate is expected to be in a range around 50 basis points higher than last year's Adjusted operating income margin rate of 4.6 percent.

•An updated GAAP and Adjusted EPS guidance range of $9.90 to $10.90, which includes second quarter tariff refund benefits of approximately $1.65. Excluding tariff refunds, the midpoint of the guidance range reflects a $0.75 increase versus prior guidance of $7.50 to $8.50.

– more –

3 The Company's guidance excludes any potential future tariff refunds.

Target Corporation Reports Second Quarter Earnings — Page 3 of 13

Operating Results

Net Sales of $26.5 billion in the second quarter were 5.3 percent higher than last year, reflecting a 5.0 percent increase in merchandise sales and a 20.1 percent increase in non-merchandise sales. Comparable sales grew 3.8 percent in the second quarter, reflecting a comparable store sales increase of 2.7 percent and comparable digital sales increase of 8.7 percent. Second quarter operating income, which included a $994 million benefit from tariff refunds, was $2.6 billion, compared with prior-year operating income of $1.3 billion. Operating income margin rate of 9.6 percent, which included 3.7 percentage points of benefit from the tariff refunds, increased from the prior-year operating income margin rate of 5.2 percent. Second quarter gross margin rate was 33.7 percent, reflecting 3.7 percentage points of benefit from tariff refunds. Excluding tariff refunds, second quarter gross margin rate expanded approximately 100 basis points over prior year margin rate of 29.0 percent, reflecting the comparison over last year's elevated markdowns and purchase order cancellation costs, as well as continued growth in advertising and non-merchandise sales. Second quarter SG&A expense rate was 21.6 percent, compared with prior-year SG&A expense rate of 21.3 percent. This increase reflects the impact of higher compensation costs, including additional hours for field teams and higher incentive compensation, as well as planned spending related to capital projects, partially offset by the leverage benefit of strong topline growth.

Interest Expense and Taxes

The Company’s second quarter 2026 net interest expense was $98 million, compared with $116 million last year, reflecting higher interest income in the current year.

Second quarter 2026 effective income tax rate was 23.7 percent, compared with the prior year rate of 23.2 percent reflecting higher pretax earnings partially offset by additional tax credit benefits in the current year.

Capital Deployment and Return on Invested Capital

Second quarter capital expenditures of $1.4 billion were 27 percent higher than last year, driven primarily by increased investments in store remodels and new stores.

The Company paid dividends of $518 million in the second quarter, compared with $509 million last year, reflecting a 1.8 percent increase in the dividend per share.

– more –

Target Corporation Reports Second Quarter Earnings — Page 4 of 13

The Company did not repurchase any stock in the second quarter. As of the end of the quarter, the Company had approximately $8.3 billion of remaining capacity under the repurchase program approved by Target’s Board of Directors in August 2021.

For the trailing twelve months through second quarter 2026, after-tax return on invested capital (ROIC) was 15.4 percent, compared with 14.3 percent for the trailing twelve months through second quarter 2025. The tables in this release provide additional information about the Company’s ROIC calculation.

Webcast Details

Target will webcast its second quarter earnings conference call at 7:00 a.m. CT today. Investors and the media are invited to listen to the meeting at Corporate.Target.com/Investors (click on “Q2 2026 Target Corporation Earnings Conference Call” under “Events & Presentations”). A replay of the webcast will be provided when available. The replay number is 1-800-365-2419.

Miscellaneous

Statements in this release regarding the Company’s future financial performance, including its fiscal 2026 full-year guidance and strategic plans, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to risks and uncertainties which could cause the Company’s results to differ materially. The most important risks and uncertainties are described in Item 1A of the Company’s Form 10-K for the fiscal year ended January 31, 2026. Forward-looking statements speak only as of the date they are made, and the Company does not undertake any obligation to update any forward-looking statement.

About Target

Target Corporation (NYSE: TGT) brings together style, design and value to offer a distinct assortment and elevated shopping experience across more than 2,000 U.S. stores and online. Powered by more than 400,000 team members, Target serves millions of families each week and invests in the communities where they live and work to support growth and opportunity for all.

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Target Corporation Reports Second Quarter Earnings — Page 5 of 13

TARGET CORPORATION

Consolidated Statements of Operations

Three Months Ended Six Months Ended

(millions, except per share data) (unaudited) August 1, 2026 August 2, 2025 Change August 1, 2026 August 2, 2025 Change

Net sales $ 26,539 $ 25,211 5.3 % $ 51,982 $ 49,057 6.0 %

Cost of sales 17,603 17,903 (1.7) 35,664 35,031 1.8

Selling, general, and administrative expenses

5,725 5,359 6.8 11,286 9,950 13.4

Depreciation and amortization (exclusive of depreciation included in cost of sales)

651 632 3.2 1,337 1,287 3.9

Operating income

2,560 1,317 94.4 3,695 2,789 32.5

Net interest expense 98 116 (16.1) 215 232 (7.4)

Net other expense / (income) 3 (17) (114.9) (13) (43) (72.0)

Earnings before income taxes

2,459 1,218 101.9 3,493 2,600 34.3

Provision for income taxes 582 283 105.8 835 629 32.7

Net earnings $ 1,877 $ 935 100.8 % $ 2,658 $ 1,971 34.9 %

Basic earnings per share

$ 4.13 $ 2.06 100.8 % $ 5.85 $ 4.33 35.1 %

Diluted earnings per share

$ 4.11 $ 2.05 100.3 % $ 5.83 $ 4.32 34.8 %

Weighted average common shares outstanding

Basic 454.4 454.6 0.0 % 454.1 454.8 (0.1) %

Diluted 456.6 455.6 0.2 % 456.2 456.1 0.0 %

Antidilutive shares 0.7 5.0 0.9 2.3

Dividends declared per share $ 1.16 $ 1.14 1.8 % $ 2.30 $ 2.26 1.8 %

Target Corporation Reports Second Quarter Earnings — Page 6 of 13

TARGET CORPORATION

Consolidated Statements of Financial Position

(millions, except footnotes) (unaudited) August 1, 2026 January 31, 2026 August 2, 2025

Assets

Cash and cash equivalents $ 5,411 $ 5,488 $ 4,341

Inventory 13,249 12,304 12,881

Other current assets 2,268 2,213 1,812

Total current assets 20,928 20,005 19,034

Property and equipment, net 34,767 33,749 33,568

Operating lease assets 3,587 3,703 3,694

Other noncurrent assets 1,953 2,033 1,555

Total assets $ 61,235 $ 59,490 $ 57,851

Liabilities and shareholders’ investment

Accounts payable $ 13,306 $ 12,622 $ 12,019

Accrued and other current liabilities 6,738 6,478 6,068

Current portion of long-term debt and other borrowings 1,136 2,130 1,136

Total current liabilities 21,180 21,230 19,223

Long-term debt and other borrowings 14,221 14,326 15,320

Noncurrent operating lease liabilities 3,332 3,462 3,514

Deferred income taxes 2,504 2,265 2,413

Other noncurrent liabilities 2,155 2,042 1,961

Total noncurrent liabilities 22,212 22,095 23,208

Shareholders’ investment

Common stock 38 38 38

Additional paid-in capital 7,329 7,247 7,084

Retained earnings 10,890 9,297 8,766

Accumulated other comprehensive loss (414) (417) (468)

Total shareholders’ investment 17,843 16,165 15,420

Total liabilities and shareholders’ investment $ 61,235 $ 59,490 $ 57,851

Common Stock Authorized 6,000,000,000 shares, $0.0833 par value; 454,291,461, 452,840,187, and 454,396,092 shares issued and outstanding as of August 1, 2026, January 31, 2026, and August 2, 2025, respectively.

Preferred Stock Authorized 5,000,000 shares, $0.01 par value; no shares were issued or outstanding during any period presented.

Target Corporation Reports Second Quarter Earnings — Page 7 of 13

TARGET CORPORATION

Consolidated Statements of Cash Flows

Six Months Ended

(millions) (unaudited) August 1, 2026 August 2, 2025

Operating activities

Net earnings $ 2,658 $ 1,971

Adjustments to reconcile net earnings to cash provided by operating activities:

Depreciation and amortization 1,597 1,558

Share-based compensation expense 154 133

Deferred income taxes 238 112

Noncash (gains) / losses and other, net (4) 1

Changes in operating accounts:

Inventory (945) (141)

Other assets 22 151

Accounts payable 612 (1,125)

Accrued and other liabilities 187 (302)

Cash provided by operating activities 4,519 2,358

Investing activities

Expenditures for property and equipment (2,404) (1,864)

Other 7 11

Cash used in investing activities (2,397) (1,853)

Financing activities

Additions to long-term debt — 1,984

Reductions of long-term debt (1,070) (1,571)

Dividends paid (1,034) (1,019)

Repurchase of stock (3) (258)

Shares withheld for taxes on share-based compensation (92) (62)

Cash used in financing activities (2,199) (926)

Net decrease in cash and cash equivalents (77) (421)

Cash and cash equivalents at beginning of period 5,488 4,762

Cash and cash equivalents at end of period $ 5,411 $ 4,341

Target Corporation Reports Second Quarter Earnings — Page 8 of 13

TARGET CORPORATION

Operating Results

Net Sales Three Months Ended Six Months Ended

(millions) (unaudited)

August 1, 2026 August 2, 2025 August 1, 2026 August 2, 2025

Apparel & accessories $ 4,090 $ 4,086 $ 7,937 $ 7,797

Beauty 3,639 3,396 7,037 6,498

Food & beverage 5,991 5,588 12,255 11,490

Hardlines (Fun 101) 3,894 3,522 7,415 6,597

Home furnishings & décor 3,668 3,662 6,906 6,880

Household essentials 4,617 4,422 9,187 8,779

Other merchandise sales 48 43 104 83

Merchandise sales 25,947 24,719 50,841 48,124

Advertising revenue (a)

279 217 525 379

Credit card profit sharing 139 134 269 275

Other 174 141 347 279

Net sales $ 26,539 $ 25,211 $ 51,982 $ 49,057

(a)Primarily represents revenue related to advertising services provided via the Company's Roundel digital advertising business offering. Roundel services are classified as either Net Sales or as a reduction of Cost of Sales or Selling, General, and Administrative (SG&A) Expenses, depending on the nature of the advertising arrangement.

Target Corporation Reports Second Quarter Earnings — Page 9 of 13

Operating Metrics Three Months Ended

(dollars in millions) (unaudited) August 1, 2026 August 2, 2025

Dollars Rate Dollars Rate

Gross margin (a)

$ 8,936 33.7 % $ 7,308 29.0 %

SG&A expenses 5,725 21.6 5,359 21.3

Adjusted SG&A expenses (b)

5,725 21.6 5,359 21.3

Depreciation and amortization (exclusive of depreciation included in cost of sales)

651 2.5 632 2.5

Operating income (a)

2,560 9.6 1,317 5.2

Adjusted operating income (a)(b)

2,560 9.6 1,317 5.2

Operating Metrics Six Months Ended

(dollars in millions) (unaudited) August 1, 2026 August 2, 2025

Dollars Rate Dollars Rate

Gross margin (a)

$ 16,319 31.4 % $ 14,026 28.6 %

SG&A expenses 11,286 21.7 9,950 20.3

Adjusted SG&A expenses (b)

11,286 21.7 10,543 21.5

Depreciation and amortization (exclusive of depreciation included in cost of sales)

1,337 2.6 1,287 2.6

Operating income (a)

3,695 7.1 2,789 5.7

Adjusted operating income (a)(b)

3,695 7.1 2,196 4.5

Note: Gross margin is calculated as Net Sales less Cost of Sales. All rates are calculated by dividing the applicable amount by Net Sales.

(a) For the three and six months ended August 1, 2026, gross margin, Operating income, and Adjusted operating income include a $994 million benefit from tariff refunds received during the second quarter of 2026, which are classified as a reduction of Cost of Sales. Tariff refunds provided 3.7 and 1.9 percentage points of benefit to Gross margin rate, Operating income margin rate, and Adjusted operating income margin rate for the three and six month periods, respectively.

(b) Adjusted SG&A expenses, Adjusted SG&A expense rate, Adjusted operating income, and Adjusted operating income margin rate, which are non-GAAP measures, exclude the impact of certain items. Management believes that these measures are useful in providing period-to-period comparisons of the results of our operations. The Reconciliation of Non-GAAP Financial Measures tables provide additional information.

Target Corporation Reports Second Quarter Earnings — Page 10 of 13

Sales Metrics

Comparable sales include all Merchandise Sales, except sales from stores open less than 13 months or that have been closed. Digitally originated sales include all Merchandise Sales initiated through mobile applications and the Company's websites.

Comparable Sales Three Months Ended Six Months Ended

(unaudited) August 1, 2026 August 2, 2025 August 1, 2026 August 2, 2025

Comparable sales change 3.8 % (1.9) % 4.7 % (2.8) %

Drivers of change in comparable sales

Number of transactions (traffic) 3.6 (1.3) 4.0 (1.8)

Average transaction amount 0.2 (0.6) 0.7 (1.0)

Comparable Sales by Channel Three Months Ended Six Months Ended

(unaudited) August 1, 2026 August 2, 2025 August 1, 2026 August 2, 2025

Stores originated comparable sales change 2.7 % (3.2) % 3.7 % (4.4) %

Digitally originated comparable sales change 8.7 4.3 8.8 4.5

Merchandise Sales by Channel Three Months Ended Six Months Ended

(unaudited) August 1, 2026 August 2, 2025 August 1, 2026 August 2, 2025

Stores originated 80.4 % 81.1 % 80.1 % 80.7 %

Digitally originated 19.6 18.9 19.9 19.3

Total 100 % 100 % 100 % 100 %

Merchandise Sales by Fulfillment Channel Three Months Ended Six Months Ended

(unaudited) August 1, 2026 August 2, 2025 August 1, 2026 August 2, 2025

Stores 97.6 % 97.7 % 97.6 % 97.7 %

Other 2.4 2.3 2.4 2.3

Total 100 % 100 % 100 % 100 %

Note: Merchandise Sales fulfilled by stores include in-store purchases and digitally originated sales fulfilled by shipping merchandise from stores to guests, Order Pickup, Drive Up, and Same Day Delivery.

Number of Stores and Retail Square Feet Number of Stores

Retail Square Feet (a)

(unaudited) August 1,

2026 January 31,

2026 August 2,

2025 August 1,

2026 January 31,

2026 August 2,

2025

170,000 or more sq. ft. 274 273 273 49,045 48,824 48,824

50,000 to 169,999 sq. ft. 1,598 1,576 1,562 200,321 197,274 195,436

49,999 or less sq. ft. 147 146 147 4,460 4,420 4,445

Total 2,019 1,995 1,982 253,826 250,518 248,705

(a)In thousands; reflects total square feet less office, supply chain facility, and vacant space.

Target Corporation Reports Second Quarter Earnings — Page 11 of 13

TARGET CORPORATION

Reconciliation of Non-GAAP Financial Measures

To provide additional transparency, the Company has disclosed non-GAAP adjusted diluted earnings per share (Adjusted EPS), adjusted SG&A expenses, adjusted SG&A expense rate, adjusted operating income, and adjusted operating income margin rate. When applicable, these measures exclude certain discretely managed items. Management believes this information is useful in providing period-to-period comparisons of the results of Target's operations. These measures are not in accordance with, or an alternative to, generally accepted accounting principles in the United States (GAAP). The most comparable GAAP measures are diluted earnings per share, SG&A expenses, SG&A expense rate, operating income, and operating income margin rate. Adjusted EPS, Adjusted SG&A expenses, Adjusted SG&A expense rate, Adjusted operating income, and Adjusted operating income margin rate should not be considered in isolation or as a substitution for analysis of Target's results as reported in accordance with GAAP. Other companies may calculate these measures differently, or not provide similar measures, limiting the usefulness of the measures for comparisons with other companies.

Reconciliation of Non-GAAP

Adjusted EPS Three Months Ended

August 1, 2026 August 2, 2025

(millions, except per share data) (unaudited) Pretax Net of Tax Per Share Pretax Net of Tax Per Share Change

GAAP and Adjusted EPS

$ 4.11 $ 2.05 100.3 %

Reconciliation of Non-GAAP

Adjusted EPS Six Months Ended

August 1, 2026 August 2, 2025

(millions, except per share data) (unaudited) Pretax Net of Tax Per Share Pretax Net of Tax Per Share Change

GAAP diluted EPS

$ 5.83 $ 4.32 34.8 %

Adjustments

Interchange fee settlements (a)

$ — $ — $ — $ (593) $ (441) $ (0.97)

Adjusted EPS

$ 5.83 $ 3.35 73.7 %

Reconciliation of Non-GAAP Adjusted SG&A Expenses and Adjusted Operating Income Three Months Ended

August 1, 2026 August 2, 2025

SG&A Expenses

Operating Income (b)

SG&A Expenses Operating Income

(dollars in millions) (unaudited) Dollars Rate Dollars Rate Dollars Rate Dollars Rate

GAAP and Adjusted measures $ 5,725 21.6 % $ 2,560 9.6 % $ 5,359 21.3 % $ 1,317 5.2 %

Reconciliation of Non-GAAP Adjusted SG&A Expenses and Adjusted Operating Income Six Months Ended

August 1, 2026 August 2, 2025

SG&A Expenses

Operating Income (b)

SG&A Expenses Operating Income

(dollars in millions) (unaudited) Dollars Rate Dollars Rate Dollars Rate Dollars Rate

Reported, GAAP measure $ 11,286 21.7 % $ 3,695 7.1 % $ 9,950 20.3 % $ 2,789 5.7 %

Adjustments

Interchange fee settlements (a)

— — — — $ 593 1.2 % $ (593) (1.2) %

Adjusted, Non-GAAP measure $ 11,286 21.7 % $ 3,695 7.1 % $ 10,543 21.5 % $ 2,196 4.5 %

Note: Amounts may not foot due to rounding.

(a)Includes gains, net of legal fees, related to settlements during the first quarter of 2025 of credit card interchange fee litigation matters in which the Company was a plaintiff. The adjustment removes the favorable impact of the settlement gains from prior-year EPS, SG&A expenses and Operating income.

(b)Note (a) to the Operating Metrics tables provides information about the impact of tariff refunds on Operating income and Operating income margin rate.

Target Corporation Reports Second Quarter Earnings — Page 12 of 13

We have also disclosed after-tax ROIC, which is a ratio based on GAAP information, with the exception of the add-back of operating lease interest to operating income. We believe this metric is useful in assessing the effectiveness of our capital allocation over time. Other companies may calculate ROIC differently, limiting the usefulness of the measure for comparisons with other companies.

After-Tax Return on Invested Capital

(dollars in millions) (unaudited)

Trailing Twelve Months

Numerator

August 1, 2026 August 2, 2025

Operating income

$ 6,024 $ 5,425

+ Net other income

64 99

EBIT

6,088 5,524

+ Operating lease interest (a)

172 166

- Income taxes (b)

1,402 1,305

Net operating profit after taxes $ 4,858 $ 4,385

Denominator

August 1, 2026 August 2, 2025 August 3, 2024

Current portion of long-term debt and other borrowings $ 1,136 $ 1,136 $ 1,640

+ Noncurrent portion of long-term debt 14,221 15,320 13,654

+ Shareholders' investment 17,843 15,420 14,429

+ Operating lease liabilities (c)

3,733 3,883 3,786

- Cash and cash equivalents

5,411 4,341 3,497

Invested capital $ 31,522 $ 31,418 $ 30,012

Average invested capital (d)

$ 31,470 $ 30,715

After-tax return on invested capital (e)

15.4 % 14.3 %

(a)Represents the add-back to operating income driven by the hypothetical interest expense we would incur if the property under our operating leases was owned or accounted for under finance leases. Calculated using the discount rate for each lease and recorded as a component of rent expense within Operating Income. Operating lease interest is added back to Operating Income in the ROIC calculation to control for differences in capital structure between us and our competitors.

(b)Calculated using the effective tax rates, which were 22.4 percent and 22.9 percent for the trailing twelve months ended August 1, 2026, and August 2, 2025, respectively. For the twelve months ended August 1, 2026, and August 2, 2025, includes tax effect of $1.4 billion and $1.3 billion, respectively, related to EBIT, and $39 million and $38 million, respectively, related to operating lease interest.

(c)Total short-term and long-term operating lease liabilities included within Accrued and Other Current Liabilities and Noncurrent Operating Lease Liabilities, respectively.

(d)Average based on the invested capital at the end of the current period and the invested capital at the end of the comparable prior period.

(e)For the trailing twelve months ended August 1, 2026, includes the impact of tariff refunds, which increased after-tax ROIC by 2.4 percentage points, and business transformation costs incurred in the trailing twelve-month period, which decreased after-tax ROIC by 0.6 percentage points. For the trailing twelve months ended August 2, 2025, includes the impact of after-tax net gains on interchange fee settlements, which increased after-tax ROIC by 1.4 percentage points.

Target Corporation Reports Second Quarter Earnings — Page 13 of 13

2026 GAAP EPS, SG&A expenses, SG&A expense rate, operating income, and operating (income) margin rate may include the impact of certain discrete items, which may be excluded in calculating Adjusted EPS, Adjusted SG&A expenses, Adjusted SG&A expense rate, Adjusted operating income, and Adjusted operating income margin rate. The guidance does not currently reflect any such discrete items, which are subject to variability and therefore cannot be reconciled without unreasonable efforts. In the past, these items have included both gains and losses, including certain asset impairments, severance, and other items that are discretely managed.

Reconciliation of Non-GAAP

Adjusted EPS Guidance

(per share) (unaudited)

Full Year 2026

GAAP diluted earnings per share guidance

$9.90 - $10.90

Estimated adjustments

Other

Adjusted diluted earnings per share guidance

$9.90 - $10.90

Note: The guidance includes second quarter tariff refund benefits of approximately $1.65, but excludes any potential future refunds.

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Filename: R1.htm · Sequence: 8

v3.26.1

Cover Page

Aug. 19, 2026

Cover [Abstract]

Document Type

8-K

Document Period End Date

Aug. 19, 2026

Entity Registrant Name

Target Corporation

Entity Incorporation, State or Country Code

Entity File Number

1-6049

Entity Tax Identification Number

41-0215170

Entity Address, Address Line One

1000 Nicollet Mall,

Entity Address, City or Town

Minneapolis,

Entity Address, State or Province

Entity Address, Postal Zip Code

55403

City Area Code

(612)

Local Phone Number

304-6073

Written Communications

false

Soliciting Material

false

Pre-commencement Tender Offer

false

Pre-commencement Issuer Tender Offer

false

Title of 12(b) Security

Common stock, par value $0.0833 per share

Trading Symbol

TGT

Security Exchange Name

NYSE

Entity Emerging Growth Company

false

Entity Central Index Key

0000027419

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