Target raises outlook after second-quarter results beat estimates

Target Corp. (NYSE: TGT ) stock hit a new 52-week high Wednesday after the retailer reported second-quarter 2026 results that beat Wall Street estimates and raised its full-year outlook. 14 billion analyst estimate. 8%.

6% increase in traffic. 7%. Same-day delivery sales increased more than 25%. 05 a year earlier.

33 analyst estimate. Results included $994 million in pretax tariff-refund benefits. 65 per share to earnings. 32 billion.

2%. 7% from 29%. 7-percentage-point benefit. Excluding the refunds, gross margin expanded about 100 basis points year over year.

1%. 99 billion. 89 billion. 4 billion, mainly reflecting investments in store remodels and new locations.

3%. 4-percentage-point benefit. 52 billion. 22 billion in long-term debt and other borrowings.

Raises 2026 Outlook Target raised its 2026 net sales growth outlook to about 5% and expects an operating margin of about 6%. The margin forecast includes about 90 basis points of benefit from second-quarter tariff refunds. 10 billion analyst estimate. 50.

50 estimate. 65 per share in second-quarter tariff-refund benefits. Excluding those refunds, the midpoint of the guidance represents a 75-cent increase from the prior outlook. The forecast excludes any potential future tariff refunds.

Read Also: Target's Comeback Is Real, But Its Stock May Have Run Too Far: Analyst Conference Call Takeaways During the earnings call, management said the second-quarter tariff refund represented the significant majority of IEEPA refunds applied for to date. However, Target expects additional refunds. Management said adjusted EPS excluding tariff refunds provides a better measure of the company's underlying earnings base going forward. Target also acknowledged that its home and apparel businesses remain below expectations.

Management expects improvements in those categories to extend into 2027 and beyond. Kids basics posted double-digit growth, while the Art Class tween brand grew 50%. Stores featuring Target's decorative-accessories home reset also outperformed. Higher-margin growth businesses remained strong.

Roundel gross billings increased nearly 20%, Target Marketplace gross merchandise value rose more than 40%, and Target Circle 360 membership revenue climbed more than 40%. Target expects about $5 billion in full-year capital spending. Management also expects to have the capacity to resume share repurchases in the second half, subject to operating performance, cash generation and credit-rating considerations. 82 at the time of publication on Wednesday.

The stock is trading at a new 52-week high, according to Pro data. Image by Ken Wolter via Shutterstock