Target (TGT) Q2 FY2026 Earnings Call: Guidance and Outlook
Management raised full year financial guidance based on performance through the first half of the year, providing updated ranges for sales growth, operating margin, and earnings per share.
About Target. Target Corp. engages in the operation and ownership of general merchandise stores. It offers food and general merchandise, clothing and household goods, electronics, and toys.
Call date
Sentiment score
+35 Balanced
Management tone, -100 to +100
Sentiment change
0
vs Q1 FY2026 call
Sector
Consumer Staples, Consumer Staples Distribution and Retail
No specific formal quarterly guidance figures were given for the next quarter.
Annual guidance
Net sales growth
A range around 5%, which is 1 percentage point higher than the prior outlook.
Operating margin rate
Excluding tariff refunds, expected to be in a range around 0.5 percentage point higher than last year's adjusted rate of 4.6%.
Earnings per share
A range of $9.90 to $10.90, including $1.65 from tariff refunds recognized in the second quarter.
Capital expenditures
Approximately $5 billion for the full year.
Outlook
Consumer demand
Busy families are responding favorably to a combination of style, design, quality, and value across categories.
Inventory and reliability
Inventory reliability metrics have reached multiyear highs on key items, supported by tools like Proxima and end-to-end planning.
Apparel and home categories
Performance in apparel and home is not yet where it needs to be, with multiyear transformation work continuing into 2027 and beyond.
Store and supply chain investments
The company continues investing in new stores, full store remodels, supply chain facilities, and technology capabilities.
Capital deployment
Capacity remains within long-standing goals to resume share repurchases in the back half of the year while supporting dividends and capital expenditures.
Dombey's summary of the Target Q2 FY2026 earnings call held Aug 19, 2026, written from the call itself. Every figure on this page was checked against what was said on the call, and quoted lines are management's own words; we do not add estimates or prices. The tone score is our read of management's wording, guidance and answers. Check figures against the company's SEC filings before acting. This is research, not investment advice.
