Target (NYSE:TGT) Sets New 1-Year High Following Better-Than-Expected Earnings

Key Points

• Target exceeded quarterly expectations: EPS came in at $4.11 versus the $2.35 consensus estimate, while revenue rose 5.3% year over year to $26.54 billion, topping forecasts.
• Shares reached a new 52-week high of $160.77 after the earnings report, while Target raised its fiscal 2026 EPS guidance to $9.90–$10.90 and analysts largely maintained positive ratings.
• Target increased its quarterly dividend to $1.16 per share, or $4.64 annually, representing a 2.9% yield. Investors remain cautious because part of the profit benefited from tariff refunds and the stock’s sharp rally may make future results harder to exceed.

Target Corporation (NYSE:TGT - Get Free Report) reached a new 52-week high during mid-day trading on Wednesday following a stronger than expected earnings report. The stock traded as high as $160.77 and last traded at $160.8940, with a volume of 2362522 shares changing hands. The stock had previously closed at $152.48.

The retailer reported $4.11 earnings per share for the quarter, topping analysts' consensus estimates of $2.35 by $1.76. Target had a net margin of 3.24% and a return on equity of 22.92%. The company had revenue of $26.54 billion during the quarter, compared to the consensus estimate of $26.13 billion. During the same period in the previous year, the firm posted $2.05 earnings per share. The company's revenue was up 5.3% on a year-over-year basis. Target has set its FY 2026 guidance at 9.900-10.900 EPS.

Target Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 1st. Shareholders of record on Wednesday, August 12th will be issued a dividend of $1.16 per share. The ex-dividend date of this dividend is Wednesday, August 12th. This represents a $4.64 annualized dividend and a yield of 2.9%. This is a positive change from Target's previous quarterly dividend of $1.14. Target's dividend payout ratio (DPR) is currently 61.29%.

Trending Headlines about Target

Here are the key news stories impacting Target this week:

• Positive Sentiment: Quarterly results exceeded expectations: Second-quarter sales rose 5.3% year over year to $26.54 billion, ahead of the $26.13 billion consensus estimate. Reported EPS also surpassed forecasts, with sources citing figures of $4.11 and $2.46 versus estimates near $2.30-$2.35. Target boosts 2026 outlook after Q2 sales and earnings beat
• Positive Sentiment: Improved customer traffic and comparable sales: Comparable sales increased 3.8%, supported by a 3.6% rise in comparable traffic. Target said lower prices and refreshed merchandise are attracting consumers, while two-year sales growth accelerated from the prior quarter. Target Corporation Reports Second Quarter Earnings
• Positive Sentiment: Guidance was raised: Target now expects fiscal 2026 EPS of $9.90-$10.90 and revenue of approximately $110 billion, above consensus expectations of $7.72 EPS and $106.4 billion in revenue. Management also projected roughly 5% full-year sales growth. Target lifts annual forecasts again
• Positive Sentiment: Analyst support strengthened: DA Davidson raised its price target on TGT from $155 to $170 and maintained a buy rating, signaling potential additional upside after the earnings beat.
• Neutral Sentiment: About $1 billion of quarterly profit reportedly benefited from tariff refunds. This boosted results but may be viewed as a one-time benefit rather than an indication of recurring earnings power. Target raises fiscal-year forecast
• Negative Sentiment: Investors remain cautious because Target faces elevated costs, difficult comparisons and questions about whether its improved sales momentum can persist. The stock’s rally of more than 55% this year also raises the risk of profit-taking if future results fail to match expectations. Target second-quarter earnings preview

Wall Street Analysts Forecast Growth

A number of research firms have recently weighed in on TGT. UBS Group boosted their target price on Target from $144.00 to $166.00 and gave the stock a "buy" rating in a research report on Thursday, August 6th. Zacks Research upgraded Target from a "hold" rating to a "strong-buy" rating in a report on Monday, July 13th. Weiss Ratings reiterated a "hold (c)" rating on shares of Target in a research report on Friday, July 31st. Royal Bank Of Canada boosted their price objective on Target from $153.00 to $166.00 and gave the stock an "outperform" rating in a report on Wednesday, August 12th. Finally, Robert W. Baird upped their target price on shares of Target from $125.00 to $135.00 and gave the company a "neutral" rating in a research report on Thursday, May 21st. One analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating, sixteen have issued a Hold rating and three have given a Sell rating to the company's stock. According to MarketBeat, Target presently has a consensus rating of "Hold" and an average price target of $143.85.

Insider Activity at Target

In related news, insider Cara A. Sylvester sold 10,000 shares of the stock in a transaction that occurred on Friday, May 29th. The shares were sold at an average price of $125.89, for a total value of $1,258,900.00. Following the sale, the insider directly owned 45,930 shares in the company, valued at $5,782,127.70. This trade represents a 17.88% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. 0.13% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Target

Large investors have recently made changes to their positions in the stock. E Fund Management Co. Ltd. boosted its holdings in Target by 4.1% during the second quarter. E Fund Management Co. Ltd. now owns 1,747 shares of the retailer's stock worth $228,000 after purchasing an additional 68 shares during the last quarter. Wynn Capital LLC increased its stake in Target by 0.9% in the 2nd quarter. Wynn Capital LLC now owns 8,455 shares of the retailer's stock valued at $1,104,000 after buying an additional 79 shares during the last quarter. Whipplewood Advisors LLC grew its holdings in shares of Target by 16.0% in the 1st quarter. Whipplewood Advisors LLC now owns 580 shares of the retailer's stock valued at $70,000 after acquiring an additional 80 shares in the last quarter. Prosperity Consulting Group LLC increased its position in shares of Target by 3.4% in the first quarter. Prosperity Consulting Group LLC now owns 2,474 shares of the retailer's stock valued at $300,000 after acquiring an additional 81 shares during the last quarter. Finally, Versant Capital Management Inc increased its position in shares of Target by 3.4% in the second quarter. Versant Capital Management Inc now owns 2,478 shares of the retailer's stock valued at $324,000 after acquiring an additional 82 shares during the last quarter. Institutional investors own 79.73% of the company's stock.

Target Trading Up 4.4%

The firm has a market cap of $72.32 billion, a price-to-earnings ratio of 21.04, a P/E/G ratio of 2.51 and a beta of 0.96. The company has a debt-to-equity ratio of 0.87, a current ratio of 0.93 and a quick ratio of 0.30. The business has a 50-day moving average of $139.08 and a 200-day moving average of $126.98.

About Target

Target Corporation NYSE: TGT is a U.S.-based general merchandise retailer headquartered in Minneapolis, Minnesota. The company operates a network of full-line and small-format stores across the United States alongside a national e-commerce platform and mobile app. Target’s retail assortment spans apparel, home goods, electronics, groceries and household essentials, plus beauty, baby and pet categories. The firm complements national brands with a portfolio of owned and exclusive labels and partnerships that help differentiate its merchandise assortment.

Target traces its roots to the Dayton Company, founded by George Dayton in 1902; the Target discount chain was launched in 1962 and the parent company later adopted the Target Corporation name.

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