Skip to content
AnalystLens

TARGET CORP 8-K Report, Financial Results (Mar 3, 2026)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed March 3, 2026
Period End
March 3, 2026
Security
TGT
In the record · 2016–202610-K1110-Q328-K125

TGT filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 125 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Oct ’16Oct ’16
  2. Leadership change8-K · Sep ’21Sep ’21
  3. Leadership change8-K · May ’25May ’25

01—Abstract

Summary

Summary of the 8-K filed March 3, 2026. Cited figures are marked; the original filing is the authoritative source.

Target Corporation (TGT) reported fourth-quarter and full-year 2025 results in its March 3, 2026 8-K (Exhibit 99 news release).

Q4 net sales were $30.5 billiona, down 1.5% year over year, with comparable sales down 2.5% (stores -3.9%, digital +1.9%). Q4 GAAP EPS was $2.30 and Adjusted EPS was $2.44, versus $2.41 a year ago, with the gap driven by $89 million of business transformation costs, mainly exit costs for excess office space. Full-year 2025 net sales fell 1.7% to $104.8 billion and comparable sales fell 2.6%.

GAAP EPS was $8.13b and Adjusted EPS was $7.57, down from $8.86 in 2024. Adjusted EPS excludes a $593 million pretax gain from credit card interchange fee settlements in Q1 2025 and $250 million of business transformation costs. Adjusted operating margin was 4.6%, down from 5.2%.

Management guided 2026 to net sales growth of about 2%, with a small comparable sales increase and new stores and non-merchandise income contributing more than one point of growth. It expects an operating margin about 20 basis points above the 2025 adjusted rate, and GAAP and Adjusted EPS of $7.50 to $8.50c, which at the midpoint implies roughly 6% growth over 2025 Adjusted EPS of $7.57. Q1 2026 EPS is expected to be flat to slightly up from $1.30, with stronger growth later in the year.

CEO Michael Fiddelke noted a positive sales increase in February. Non-merchandise revenue is a bright spot: membership revenue more than doubled, advertising revenue rose to $915 milliond for the year, and same-day delivery grew over 30%. Balance sheet and capital return signals were mixed.

Cash from operations fell to $6.6 billion from $7.4 billion, while capital expenditures rose to $3.7 billion from $2.9 billion. Target repurchased no shares in Q4, leaving about $8.3 billion of authorization, and the dividend was raised 1.8%.

Net interest expense rose 8.2% to $445 million on higher debt. After-tax ROIC declined to 13.8% from 15.4%.

02—Key points

Key Highlights

  1. Q4 2025 net sales of $30.5B, down 1.5% YoY; comparable sales down 2.5% (stores -3.9%, digital +1.9%).
  2. Q4 GAAP EPS $2.30 vs. Adjusted EPS $2.44 (excludes $89M business transformation costs), versus $2.41 in Q4 2024.
  3. FY2025 Adjusted EPS $7.57 (down 14.5% YoY) vs. GAAP EPS $8.13, which includes a $593M pretax interchange fee settlement gain offset by $250M transformation costs.
  4. FY2026 guidance: net sales growth of about 2%, operating margin about 20 bps above 2025 adjusted 4.6%, and EPS of $7.50–$8.50.
  5. Q1 2026 EPS guided flat to slightly up from $1.30, with EPS growth expected to accelerate through the rest of the year.
  6. Non-merchandise momentum: membership revenue more than doubled, advertising revenue up to $915M for the year (from $649M), and same-day delivery up over 30%.
  7. Cash flow and returns pressure: operating cash flow fell to $6.6B, capex rose to $3.7B, no buybacks in Q4, and after-tax ROIC fell to 13.8% from 15.4%.

03—Questions

Frequently Asked Questions

  1. What was Target's full-year 2025 earnings performance?

    Target reported GAAP diluted EPS of $8.13 for 2025, down from $8.86 in 2024. Adjusted EPS, which excludes a $593M pretax interchange fee settlement gain and $250M of business transformation costs, was $7.57, down 14.5%. Net sales fell 1.7% to $104.8B and comparable sales fell 2.6%.

  2. What is Target's 2026 outlook?

    Management expects net sales growth of about 2%, with a small comparable sales increase and new stores and non-merchandise revenue adding more than one point of growth. It expects an operating margin about 20 bps above the 2025 adjusted rate of 4.6%, and GAAP and Adjusted EPS of $7.50 to $8.50. Q1 2026 EPS is expected to be flat to slightly up from $1.30.

  3. Why did Target's GAAP and Adjusted EPS differ in Q4 2025?

    The $0.15 per-share gap reflects $89M of business transformation costs, primarily exit costs for excess office space. Excluding these, Q4 Adjusted EPS was $2.44, compared with $2.41 a year earlier.

  4. Is Target returning less capital to shareholders?

    Target did not repurchase shares in Q4 2025 and had about $8.3B of remaining authorization. Dividends rose 1.8% per share, with $516M paid in Q4. For the full year, buybacks were $408M, down from $1.0B in 2024, and operating cash flow fell to $6.6B while capex rose to $3.7B.

  5. What are the main growth drivers beyond merchandise sales?

    Non-merchandise revenue is growing. Membership revenue more than doubled year over year, Roundel advertising revenue reached $915M for 2025 versus $649M in 2024, marketplace sales grew over 30%, and same-day delivery through Target Circle 360 grew over 30%.

04—Continue

← View all 8-K filings