TARGET CORP Earnings Summary — Q1 2026

• Revenue grew 6.7% YoY to $25.44 billion, a notable recovery after several quarters of stagnation or decline.
• Net income fell significantly by 24.6% YoY to $781 million, impacted by rising total operating expenses.
• Operating income of $1.14 billion represents a 22.9% decrease from the $1.47 billion reported in Q1 2025.
• Total operating expenses surged to $6.25 billion in Q1 2026, compared to $5.25 billion in the same period last year.
• The quarter showed a sharp sequential decline in net income from Q4 2025's $1.05 billion.
• Depreciation and Amortization expenses remained relatively stable at $685 million.
• Interest expense climbed significantly to $117 million, up from $90 million in late 2024 periods.

Management is focused on restoring operating margins to pre-2022 levels and navigating a post-pandemic normalization phase.

Deteriorating

While revenue growth has returned to positive territory, the substantial drop in bottom-line profitability and rising operating costs suggest continued margin pressure.

Target remains in a plateauing phase for consumer demand, with a clear focus on balancing their 'Cheap Chic' apparel and essential grocery traffic drivers against a leveraged balance sheet and inventory volatility.