tgt-20260801



UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended August 1, 2026

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____ to ____

Commission File Number 1-6049

TARGET CORPORATION

(Exact name of registrant as specified in its charter)

Minnesota

(State or other jurisdiction of incorporation or organization)

1000 Nicollet Mall, Minneapolis, Minnesota

(Address of principal executive offices)

41-0215170

(I.R.S. Employer Identification No.)

55403

(Zip Code)

612-304-6073

(Registrant’s telephone number, including area code)

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 (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

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. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Total shares of common stock, par value $0.0833, outstanding at August 21, 2026, were 454,296,736.


						Table of Contents
						Index to Notes

TARGET CORPORATION

TABLE OF CONTENTS


PART I	FINANCIAL INFORMATION
Item 1.	Financial Statements (unaudited)
	Consolidated Statements of Operations	1
	Consolidated Statements of Comprehensive Income	2
	Consolidated Statements of Financial Position	3
	Consolidated Statements of Cash Flows	4
	Consolidated Statements of Shareholders’ Investment	5
	Notes to Consolidated Financial Statements	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	14
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	24
Item 4.	Controls and Procedures	24

PART II	OTHER INFORMATION
Item 1.	Legal Proceedings	25
Item 1A.	Risk Factors	25
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	25
Item 3.	Defaults Upon Senior Securities	25
Item 4.	Mine Safety Disclosures	25
Item 5.	Other Information	25
Item 6.	Exhibits	26

Signatures		27


			FINANCIAL STATEMENTS			Table of Contents
						Index to Notes

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements


Consolidated Statements of Operations
	Three Months Ended				Six Months Ended
(millions, except per share data) (unaudited)	August 1, 2026		August 2, 2025		August 1, 2026		August 2, 2025
Net sales	$	26,539	$	25,211	$	51,982	$	49,057
Cost of sales	17,603		17,903		35,664		35,031
Selling, general, and administrative expenses	5,725		5,359		11,286		9,950
Depreciation and amortization (exclusive of depreciation included in cost of sales)	651		632		1,337		1,287
Operating income	2,560		1,317		3,695		2,789
Net interest expense	98		116		215		232
Net other expense / (income)	3		(17)		(13)		(43)
Earnings before income taxes	2,459		1,218		3,493		2,600
Provision for income taxes	582		283		835		629
Net earnings	$	1,877	$	935	$	2,658	$	1,971
Basic earnings per share	$	4.13	$	2.06	$	5.85	$	4.33
Diluted earnings per share	$	4.11	$	2.05	$	5.83	$	4.32
Weighted average common shares outstanding
Basic	454.4		454.6		454.1		454.8
Diluted	456.6		455.6		456.2		456.1
Antidilutive shares	0.7		5.0		0.9		2.3

See accompanying Notes to Consolidated Financial Statements.


TARGET CORPORATION						Q2 2026 Form 10-Q			1


			FINANCIAL STATEMENTS			Table of Contents
						Index to Notes


Consolidated Statements of Comprehensive Income
	Three Months Ended				Six Months Ended
(millions) (unaudited)	August 1, 2026		August 2, 2025		August 1, 2026		August 2, 2025
Net earnings	$	1,877	$	935	$	2,658	$	1,971
Other comprehensive income / (loss), net of tax
Pension	6		—		13		—
Cash flow hedges and currency translation adjustment	(5)		(6)		(10)		(10)
Other comprehensive income / (loss)	1		(6)		3		(10)
Comprehensive income	$	1,878	$	929	$	2,661	$	1,961

See accompanying Notes to Consolidated Financial Statements.


TARGET CORPORATION						Q2 2026 Form 10-Q			2


			FINANCIAL STATEMENTS			Table of Contents
						Index to Notes


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.

See accompanying Notes to Consolidated Financial Statements.


TARGET CORPORATION						Q2 2026 Form 10-Q			3


			FINANCIAL STATEMENTS			Table of Contents
						Index to Notes


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
Supplemental information
Leased assets obtained in exchange for new finance lease liabilities	$	18	$	41
Leased assets obtained in exchange for new operating lease liabilities	84		119

See accompanying Notes to Consolidated Financial Statements.


TARGET CORPORATION						Q2 2026 Form 10-Q			4


			FINANCIAL STATEMENTS			Table of Contents
						Index to Notes

Consolidated Statements of Shareholders’ Investment

Common

Stock

Additional

Accumulated Other

Stock

Par

Paid-in

Retained

Comprehensive

(millions) (unaudited)

Value

Capital

Earnings

Loss

Total

February 1, 2025

455.6

6,996