TGTNYSERetail-Variety StoresUS GAAP · USD

Target Corporation

Target Corp. is a U.S.-based general merchandise retailer that sells apparel, home goods, food, beauty, essentials, and seasonal products through its stores and digital channels. The company operates as a single retail segment and combines physical stores, e-commerce, fulfillment services, and loyalty programs to serve everyday consumer shopping needs.

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Revenue104.8bn USD
−1.7 %y/y
Operating profit (EBIT)5,117m USD
−8.1 %y/y
EBIT margin4.9%
−0.3 ppy/y
Net income3,705m USD
−9.4 %y/y
Free cash flow2,835m USD
−36.7 %y/y

Fiscal year 2026 · change from previous year

Development 2021–2026

0255075100125bn USD2021: 93.6 bn USD2021: EBIT 6.5 bn USD20212022: 106.0 bn USD2022: EBIT 8.9 bn USD20222023: 109.1 bn USD2023: EBIT 3.8 bn USD20232024: 107.4 bn USD2024: EBIT 5.7 bn USD20242025: 106.6 bn USD2025: EBIT 5.6 bn USD20252026: 104.8 bn USD2026: EBIT 5.1 bn USD2026104.85.1
RevenueOperating profit (EBIT)

Business

Share of revenue
Merchandise sales92 %

Core retail sales of fashion, home, food, beauty, and everyday essentials.

Advertising services3 %

Roundel advertising sold to vendors and other third parties.

Credit card profit-sharing2 %

Income tied to the Target Circle Card program and related payments activity.

Marketplace and membership revenue3 %

Target Plus third-party marketplace and Target Circle 360 membership fees.

Products

Reported · share of revenue
23.0%17.2%15.1%15.0%14.9%14.8%FY2026100 %
  • Food and Beverage23.0 %
  • Household Essentials17.2 %
  • Hardlines15.1 %
  • Apparel and Accessories15.0 %
  • Home Furnishings and Decor14.9 %
  • Other14.8 %

Source: 10-K FY2026, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.

Customers

Target serves mass-market U.S. consumers who shop for everyday essentials, discretionary items, and seasonal purchases. Its guests value a mix of style, convenience, and discount pricing, with many using stores, the app, and delivery options interchangeably. The business also serves vendors and third parties through advertising and marketplace services.

Everyday household shoppers

Buy food, essentials, and routine household items for convenience and value.

Discretionary and style shoppers

Buy apparel, home, beauty, and seasonal merchandise for assortment and design.

Digital convenience shoppers

Use app, website, pickup, drive-up, and delivery for speed and convenience.

Brand and vendor partners

Buy Roundel advertising and Target Plus marketplace access to reach Target guests.

Strategy

Target’s strategy centers on differentiated assortment, everyday value, and a convenient omnichannel shopping experience. The company is also building adjacent capabilities such as advertising, marketplace, and loyalty to deepen guest engagement and use its store and digital assets more efficiently.

Differentiate assortment and valueMedium term

A curated mix and strong private-label portfolio help Target stand out in mass retail.

Expand omnichannel convenienceShort term

Stores and digital channels together improve accessibility and trip frequency.

Improve supply-chain efficiencyMedium term

Faster, more reliable replenishment supports in-stock levels and guest experience.

Monetize platform assetsMedium term

Advertising, marketplace, and membership services leverage existing traffic and data.

Geography

Target’s business is overwhelmingly U.S.-centric, with stores, digital sales, and fulfillment concentrated in the United States. It also maintains global sourcing offices in 12 countries, which supports merchandise procurement and exposes the company to import, tariff, and supply-chain risk. The geographic footprint matters because consumer demand is domestic while much of the merchandise supply base is international.

Risks

Target faces consumer-demand risk, especially when shoppers trade down, reduce discretionary spending, or shift behavior toward digital comparison shopping. Its heavy reliance on imported merchandise, owned brands, and a complex omnichannel model also creates exposure to tariffs, sourcing disruptions, product safety issues, cybersecurity, and execution risk.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →Tariff and import-cost exposure1Consumer demand weakness in discretionary categories2Owned-brand sourcing and forecasting risk3Product safety and sourcing compliance4Information security and data privacy5
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. Tariff and import-cost exposureImpact: HighLikelihood: High

    About half of merchandise is sourced outside the U.S., with China as the largest source.

    Exposure: Imported general merchandise and owned brands

  2. Consumer demand weakness in discretionary categoriesImpact: HighLikelihood: Medium

    Target sells a meaningful mix of nonessential merchandise that is sensitive to spending trends.

    ExposureApparelHomeSeasonalBeauty
  3. Owned-brand sourcing and forecasting riskImpact: HighLikelihood: Medium

    Private-label products require longer lead times and tighter demand planning.

    Exposure: Owned and exclusive brands

  4. Product safety and sourcing complianceImpact: HighLikelihood: Medium

    Vendor failures can lead to recalls, enforcement actions, and reputational damage.

    Exposure: Merchandise quality and responsible sourcing

  5. Information security and data privacyImpact: MediumLikelihood: Medium

    Retail operations and loyalty programs depend on secure customer and payment data.

    ExposureDigital channelsLoyaltyCard programs

Accounting

Judgemental items
Revenue presentation and comparability

The company reclassified revenue into a single net sales line, affecting period-to-period comparisons.

Impact: Historical gross margin and revenue trend analysis

Inventory valuation and receipts timing

Inventory build and receipt timing influence cost of sales, markdowns, and in-stock levels.

Impact: Gross margin and working capital

Operating leases

A large store base creates significant lease liabilities and right-of-use assets.

Impact: Balance sheet leverage and fixed-cost profile

Contingencies and litigation accruals

Retailers face product, labor, and commercial claims that require judgment in accruals.

Impact: Earnings volatility if claims become unfavorable

Tax rate and share-based compensation

Discrete tax items and equity compensation can move quarterly tax expense.

Impact: Quarterly EPS comparability

Similar listed companies

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Last updated: 24/09/2026