| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 79 | 16.1x | 17.8x | Top tier | |
Growth | 44 | 2.0% | 7.1% | Around median | |
Quality | 72 | 13.1% | 4.5% | Top tier | |
Safety | 68 | 1.5x | 2.6x | Top tier | |
Capital Return | 75 | 2.91% | 2.12% | Top tier | |
Momentum | 95 | 66.1% | 2.9% | Top tier | |
Sentiment | 67 | 24 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Target Corporation operates in retail through a network of nearly 2,000 stores and digital channels, and also uses its stores as fulfillment centers for more than 95% of its sales. The company combines the sale of food and beverages, beauty, health and wellness, baby products, apparel, home goods, toys, and electronics with additional revenue sources including advertising through Roundel, the Target+ online marketplace, and Target Circle 360 membership; its seven priority areas represent about 50% of sales.
In Q2 of fiscal 2026, net sales reached $26.5 billion, up 5.3% year over year, while comparable sales rose 3.8%, driven by 3.6% traffic growth as the average transaction value remained approximately flat. Comparable store sales grew 2.7% and comparable digital sales grew 8.7%, with strong performance led by Fun101, food and beverages, and beauty, while growth in apparel and home remained roughly flat and did not reach management's target level.
Gross margin was 33.7% in Q2 of fiscal 2026, up 4.7 percentage points, but 3.7 percentage points of the improvement came from $994 million in pre-tax tariff refunds. Operating margin was 9.6% versus 5.2% a year earlier, representing an underlying improvement of about 70 basis points after excluding the refunds, while earnings per share were $4.11 versus $2.05; the refunds contributed $1.65, while earnings per share increased by about 20% excluding them.
The average analyst consensus price target is $165.14, within a wide range of $140 to $200, with a consensus Buy recommendation; the average is below the upper end of the 52-week range of $170.75, while the highest target exceeds that level. The wide gap between the lowest and highest targets, alongside the 52-week range of $83.44–$170.75, indicates meaningful disagreement over the sustainability of the recovery, particularly because a large portion of Q2 fiscal 2026 profit resulted from nonrecurring tariff refunds and the home and apparel turnaround still extends over several years.
Figures in the text are as of 2026-08-27; the live price is shown at the top of the page.
Net sales reached $26.5 billion, up 5.3% year over year, while comparable sales rose 3.8%. Growth came primarily from a 3.6% increase in traffic, while the average transaction value remained approximately flat. Digital channels recorded comparable growth of 8.7%, led by an increase of more than 25% in same-day delivery.
Reported earnings per share were $4.11 versus $2.05 a year earlier, but tariff refunds added $1.65 to the figure. The company recorded a pre-tax benefit of $994 million, which increased operating margin by 3.7 percentage points. Excluding the refunds, earnings per share rose by about 20% and underlying operating margin improved by about 70 basis points, indicating operational improvement, though less than the reported surge.
The company raised its net sales growth forecast to about 5%, one percentage point above its previous forecast. It also raised its earnings per share range from $7.50–$8.50 to $9.90–$10.90. The new range includes a $1.65 benefit from tariff refunds, while the midpoint of the range excluding this benefit is $0.75 above the midpoint of the previous forecast.
Automated analysis for informational purposes only — not investment advice.
Categories in which the changes have been completed are showing strong initial results; snack sales exceeded their previous level by more than 15%, LEGO rose more than 30%, and plush products increased more than 20%. Sales of $10 Heyday headphones also rose more than 35%, while the Art Class brand increased 50%. In contrast, growth in home and apparel remained roughly flat, and management confirmed on the August 19, 2026 call that work on these two categories will extend into 2027 and beyond.
Comparable digital sales grew 8.7% in Q2 of fiscal 2026, while same-day delivery sales rose more than 25%. Beyond direct retail sales, Roundel's gross billings increased by about 20%, while Target+ gross merchandise value and Target Circle 360 revenue each rose more than 40%. Digital traffic coming from external artificial intelligence platforms also increased at more than 3.5 times the industry's pace compared with the prior year, although management describes its overall volume as still small.
The company has spent approximately $2.4 billion on capital expenditure since the beginning of fiscal 2026, up about 30%, and expects about $5 billion for the full year. It paid $518 million in dividends in Q2 and slightly more than $1 billion during the first half, with a long-term goal of moving toward a 40% payout ratio. It also expects to have the capacity to resume share repurchases in the second half, with the amount and timing to be determined based on cash flows, the spending plan, and maintaining its credit ratings in the mid-A category.
