Target beat estimates, raised full-year guidance and booked a $994 million tariff refund.
Why it matters: The results offer a fresh read on U.S. consumer demand and retail pricing pressure. They also show how trade policy can materially lift profits at a major chain.
- Target reported second-quarter 2026 results on Aug. 19, 2026.
- Net income rose to $1.87 billion, or $4.11 per share, above the $2.34 estimate.
- Comparable store sales increased 2.7%, while digital comparable sales rose 8.7%.
- A $994 million tariff refund, equal to $1.65 per share, boosted profit.
Target said its second-quarter 2026 earnings improved as sales rebounded and a tariff refund lifted profit. The company reported results for the quarter ended Aug. 1, 2026, on Aug. 19, 2026.
AP reported net income of $1.87 billion, or $4.11 per share, topping the $2.34 per share Wall Street had expected. AP also reported that Target benefited from a $994 million tariff refund in the quarter, equal to $1.65 per share.
The sales trend improved as well. Comparable store sales rose 2.7% and digital comparable sales increased 8.7%, according to AP. CNBC reported that Target raised full-year guidance after the rebound in sales and the tariff refund boosted earnings.
For investors, the key question is whether the sales recovery can continue without one-time help from trade-related refunds. The update gives a quick read on whether Target's turnaround effort is taking hold.
By the numbers
- $1.87 billion - Target's second-quarter net income
- 2.7% - comparable store sales growth
- 8.7% - digital comparable sales growth
Yes, but: The tariff refund boosted profit, but it may not repeat in future quarters.
What's next: Target's earnings call was scheduled for 8:00 to 9:00 a.m. EDT on Aug. 19, 2026.