Target Doubles Profit on Import-Duty Refunds
Target reported strong second-quarter 2026 results, with revenue up and quarterly profit nearly doubling after receiving large refunds of previously paid US import duties. Q2 revenue rose 5.3% to $26.5 billion and comparable sales increased 3.8%; online sales grew 8.7%. Target received $994 million in import-duty refunds, which materially improved operating results and gross margin. The company raised its full-year revenue and earnings guidance, now expecting roughly 5% revenue growth and diluted EPS of $9.90–$10.90. Management also increased investments in stores and customer experience, with a 27% rise in spending on new locations and remodels. Operating cash flow for the first half exceeded $4.5 billion; Target paid $518 million in dividends and has about $8.3 billion authorized for future share repurchases (none executed in the quarter).
- •Target received $994 million in refunds of previously paid US import duties in Q2 2026.
- •Quarterly revenue rose 5.3% to $26.5 billion; comparable sales increased 3.8% in Q2 2026.
- •Quarterly net income nearly doubled to $1.88 billion; diluted EPS increased from $2.05 to $4.11.