US Market News
3週前
Target Corporation Reports First Quarter EarningsMay 20, 2026 6:30 AM
PR Newswire (US) MINNEAPOLIS, May 20, 2026 /PRNewswire/ --First quarter net sales grew 6.7 percent over last year, well above expectations.Topline strength was broad-based across merchandise categories, sales channels and across the quarter.Comparable traffic grew 4.4 percent compared with Q1 2025. Net sales in all six core merchandising categories were higher than a year ago.Digital comparable sales grew 8.9 percent, led by more than 27% growth in same-day delivery powered by Target Circle 360.Non-merchandise sales grew nearly 25 percent, reflecting strong growth in Roundel ad revenue, Target Circle 360 membership revenue, and the Target+ marketplace.First quarter GAAP and Adjusted EPS1 was $1.71, 24 percent lower than prior-year GAAP EPS (which included non-recurring legal settlement gains), and 32 percent higher than prior-year Adjusted EPS.For additional media materials, please visit:
https://corporate.target.com/news-features/article/2026/05/q1-2026-earningsTarget Corporation (NYSE: TGT) today announced its first quarter 2026 financial results.The Company reported first quarter GAAP and Adjusted earnings per share (EPS) of $1.71, compared with prior-year GAAP EPS2 of $2.27 and Adjusted EPS of $1.30. The attached tables provide reconciliations of non-GAAP to GAAP measures. All earnings per share figures are calculated on a diluted basis."First quarter financial results were stronger than expected, providing encouraging early signs that our clarified strategy is resonating with our guests and driving broad-based growth across our business," said Michael Fiddelke, Chief Executive Officer of Target. "While we're pleased with our Q1 performance, our focus remains on building consistent, long-term growth, and we recognize there is much more work in front of us. As we look ahead, we're focused on staying disciplined and flexible in an uncertain operating environment and continuing to invest boldly in our team, capabilities, and an elevated guest experience to unlock our full potential over time."GuidanceThe Company has the following updated expectations for 2026:Net sales growth in a range around 4 percent compared with 2025 - two percentage points higher than the prior range. The Company continues to expect to grow net sales in every quarter of the year.Full-year 2026 operating income margin rate more than 20 basis points higher than the 4.6 percent Adjusted operating income margin rate in 2025.GAAP and Adjusted EPS near the high end of the prior guidance range of $7.50 to $8.50.Operating ResultsNet Sales of $25.4 billion in the first quarter were 6.7 percent higher than last year, reflecting a 6.4 percent increase in merchandise sales and a 24.6 percent increase in non-merchandise sales. Comparable sales grew 5.6 percent in the first quarter, reflecting a comparable store sales increase of 4.7 percent and comparable digital sales growth of 8.9 percent. First quarter operating income and Adjusted operating income3 were $1.1 billion, a 22.9 percent decrease from prior-year GAAP operating income and a 29.1 percent increase from prior-year Adjusted operating income.First quarter operating income margin rate and Adjusted operating income margin rate3 were 4.5 percent in 2026, compared with the prior-year GAAP operating income margin rate of 6.2 percent and an Adjusted operating income rate of 3.7 percent. First quarter gross margin rate was 29.0 percent, compared with 28.2 percent in 2025, reflecting improved productivity in supply chain facilities, growth in advertising and other non-merchandise revenues, and lower markdown rates, partially offset by higher product costs. First quarter SG&A expense rate and Adjusted SG&A expense rate3 was 21.9 percent, compared to 2025 GAAP SG&A expense rate of 19.3 percent and Adjusted SG&A expense rate of 21.7 percent. This increase reflects the impact of higher compensation costs, including additional hours and training for field teams along with higher incentive compensation, planned spending related to capital projects, and higher marketing expense, partially offset by the leverage benefit of strong topline growth.Interest Expense and TaxesThe Company's first quarter 2026 net interest expense was $117 million, in line with $116 million last year.First quarter 2026 effective income tax rate was 24.4 percent, compared with the prior-year rate of 25.0 percent, reflecting lower discrete tax expenses in the current year.Capital Deployment and Return on Invested CapitalFirst quarter capital expenditures of $1.0 billion were 31 percent higher than last year, driven primarily by increased investments in new stores and store remodels.The Company paid dividends of $516 million in the first quarter, compared with $510 million last year, reflecting a 1.8 percent increase in the dividend per share, partially offset by the impact of a lower share count.The Company did not repurchase any stock in the first quarter. As of the end of the quarter, the Company had approximately $8.3 billion of remaining capacity under the repurchase program approved by Target's Board of Directors in August 2021.For the trailing twelve months through first quarter 2026, after-tax return on invested capital (ROIC) was 12.4 percent, compared with 15.1 percent for the trailing twelve months through first quarter 2025. The tables in this release provide additional information about the Company's ROIC calculation.Webcast DetailsTarget will webcast its first quarter earnings conference call at 7:00 a.m. CT today. Investors and the media are invited to listen to the meeting at Corporate.Target.com/Investors (click on "Q1 2026 Target Corporation Earnings Conference Call" under "Events & Presentations"). A replay of the webcast will be provided when available. The replay number is 1-866-491-2847.MiscellaneousStatements in this release regarding the Company's future financial performance, including its fiscal 2026 full-year guidance, which excludes, among others, impacts from any tariff refunds, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to risks and uncertainties which could cause the Company's results to differ materially. The most important risks and uncertainties are described in Item 1A of the Company's Form 10-K for the fiscal year ended January 31, 2026. Forward-looking statements speak only as of the date they are made, and the Company does not undertake any obligation to update any forward-looking statement.About TargetTarget Corporation (NYSE: TGT) brings together style, design and value to offer a distinct assortment and elevated shopping experience across more than 2,000 U.S. stores and online. Powered by more than 400,000 team members, Target serves millions of families each week and invests in the communities where they live and work to support growth and opportunity for all.1 Adjusted EPS, Adjusted selling, general and administrative (SG&A) expenses, Adjusted SG&A expense rate, Adjusted operating income, and Adjusted operating income margin rate, non-GAAP financial measures, exclude the impact of certain discretely managed items, when applicable. See the tables of this release for additional information.
2 Q1 2025 GAAP EPS included $441 million of after-tax net gains on interchange fee settlements, which were excluded from Adjusted EPS. Note (a) to the Operating Metrics table provides additional information about interchange fee settlements.
3 Q1 2025 GAAP SG&A expenses, GAAP SG&A expense rate, GAAP operating income, and GAAP operating income margin rate included $593 million of pretax gains on interchange fee settlements, which was excluded from Adjusted SG&A expenses, Adjusted SG&A expense rate, Adjusted operating income, and Adjusted operating income margin rate, non-GAAP financial measures. See the tables of this release for additional information. TARGET CORPORATION Consolidated Statements of Operations
Three Months Ended
(millions, except per share data) (unaudited)
May 2, 2026
May 3, 2025
ChangeNet sales
$ 25,443
$ 23,846
6.7 %Cost of sales
18,061
17,128
5.4Selling, general and administrative expenses
5,562
4,591
21.1Depreciation and amortization (exclusive of depreciation included in cost of sales)
685
655
4.6Operating income
1,135
1,472
(22.9)Net interest expense
117
116
1.3Net other income
(15)
(26)
(43.0)Earnings before income taxes
1,033
1,382
(25.2)Provision for income taxes
252
346
(27.2)Net earnings
$ 781
$ 1,036
(24.6) %Basic earnings per share
$ 1.72
$ 2.28
(24.4) %Diluted earnings per share
$ 1.71
$ 2.27
(24.5) %Weighted average common shares outstanding
Basic
453.8
455.0
(0.3) %Diluted
455.8
456.5
(0.2) %Antidilutive shares
1.0
2.4
Dividends declared per share
$ 1.14
$ 1.12
1.8 % TARGET CORPORATION
Consolidated Statements of Financial Position(millions, except footnotes) (unaudited)
May 2, 2026
January 31, 2026
May 3, 2025Assets
Cash and cash equivalents
$ 3,534
$ 5,488
$ 2,887Inventory
12,317
12,304
13,048Other current assets
2,214
2,213
1,824Total current assets
18,065
20,005
17,759Property and equipment, net
34,175
33,749
33,182Operating lease assets
3,652
3,703
3,739Other noncurrent assets
2,118
2,033
1,505Total assets
$ 58,010
$ 59,490
$ 56,185Liabilities and shareholders' investment
Accounts payable
$ 12,188
$ 12,622
$ 11,823Accrued and other current liabilities
6,063
6,478
6,029Current portion of long-term debt and other borrowings
1,133
2,130
1,139Total current liabilities
19,384
21,230
18,991Long-term debt and other borrowings
14,282
14,326
14,334Noncurrent operating lease liabilities
3,416
3,462
3,564Deferred income taxes
2,438
2,265
2,338Other noncurrent liabilities
2,095
2,042
2,011Total noncurrent liabilities
22,231
22,095
22,247Shareholders' investment
Common stock
38
38
38Additional paid-in capital
7,220
7,247
7,011Retained earnings
9,552
9,297
8,360Accumulated other comprehensive loss
(415)
(417)
(462)Total shareholders' investment
16,395
16,165
14,947Total liabilities and shareholders' investment
$ 58,010
$ 59,490
$ 56,185Common Stock Authorized 6,000,000,000 shares, $0.0833 par value; 454,177,135, 452,840,187, and 454,364,799 shares issued and outstanding as of May 2, 2026, January 31, 2026, and May 3, 2025, respectively.
Preferred Stock Authorized 5,000,000 shares, $0.01 par value; no shares were issued or outstanding during any period presented. TARGET CORPORATION
Consolidated Statements of Cash Flows
Three Months Ended(millions) (unaudited)
May 2, 2026
May 3, 2025Operating activities
Net earnings
$ 781
$ 1,036Adjustments to reconcile net earnings to cash provided by operating activities:
Depreciation and amortization
813
787Share-based compensation expense
54
69Deferred income taxes
173
36Noncash (gains) / losses and other, net
(42)
(4)Changes in operating accounts:
Inventory
(13)
(308)Other assets
(85)
146Accounts payable
(557)
(1,344)Accrued and other liabilities
(408)
(143)Cash provided by operating activities
716
275Investing activities
Expenditures for property and equipment
(1,035)
(790)Other
2
3Cash used in investing activities
(1,033)
(787)Financing activities
Additions to long-term debt
—
991Reductions of long-term debt
(1,032)
(1,534)Dividends paid
(516)
(510)Repurchase of stock
—
(250)Shares withheld for taxes on share-based compensation
(89)
(60)Cash used in financing activities
(1,637)
(1,363)Net decrease in cash and cash equivalents
(1,954)
(1,875)Cash and cash equivalents at beginning of period
5,488
4,762Cash and cash equivalents at end of period
$ 3,534
$ 2,887 TARGET CORPORATION
Operating ResultsNet SalesThree Months Ended(millions) (unaudited)May 2, 2026
May 3, 2025Apparel & accessories$ 3,846
$ 3,711Beauty3,398
3,101Food & beverage6,263
5,902Hardlines (Fun 101)3,522
3,074Home furnishings & décor3,239
3,220Household essentials4,570
4,357Other merchandise sales56
40Merchandise sales24,894
23,405Advertising revenue (a)246
163Credit card profit sharing 130
141Other173
137Net sales$ 25,443
$ 23,846(a)Primarily represents revenue related to advertising services provided via the Company's Roundel digital advertising business offering. Roundel services are classified as either Net Sales or as a reduction of Cost of Sales or Selling, General, and Administrative (SG&A) Expenses, depending on the nature of the advertising arrangement. Operating Metrics
Three Months Ended(dollars in millions) (unaudited)
May 2, 2026
May 3, 2025
Dollars
Rate
Dollars
RateGross margin
$ 7,382
29.0 %
$ 6,718
28.2 %SG&A expenses
5,562
21.9
4,591
19.3Adjusted SG&A expenses (a)
5,562
21.9
5,183
21.7Depreciation and amortization (exclusive of depreciation included in cost of sales)
685
2.7
655
2.7Operating income
1,135
4.5
1,472
6.2Adjusted operating income (a)
1,135
4.5
879
3.7Note: Gross margin is calculated as Net Sales less Cost of Sales. All rates are calculated by dividing the applicable amount by Net Sales.(a)Adjusted SG&A expenses, Adjusted SG&A expense rate, Adjusted operating income, and Adjusted operating income margin rate, which are non-GAAP measures, exclude the impact of certain items. Management believes that these measures are useful in providing period-to-period comparisons of the results of our operations. The Reconciliation of Non-GAAP Financial Measures tables provide additional information.Sales MetricsComparable sales include all Merchandise Sales, except sales from stores open less than 13 months or that have been closed. Digitally originated sales include all Merchandise Sales initiated through mobile applications and the Company's websites. Comparable Sales
Three Months Ended
(unaudited)
May 2, 2026
May 3, 2025
Comparable sales change
5.6 %
(3.8) %
Drivers of change in comparable sales
Number of transactions (traffic)
4.4
(2.4)
Average transaction amount
1.1
(1.4)
Comparable Sales by Channel
Three Months Ended(unaudited)
May 2, 2026
May 3, 2025Stores originated comparable sales change
4.7 %
(5.7) %Digitally originated comparable sales change
8.9
4.7
Merchandise Sales by Channel
Three Months Ended
(unaudited)
May 2, 2026
May 3, 2025
Stores originated
79.7 %
80.2 %
Digitally originated
20.3
19.8
Total
100 %
100 %
Merchandise Sales by Fulfillment Channel
Three Months Ended
(unaudited)
May 2, 2026
May 3, 2025
Stores
97.6 %
97.6 %
Other
2.4
2.4
Total
100 %
100 %
Note: Merchandise Sales fulfilled by stores include in-store purchases and digitally originated sales fulfilled by shipping merchandise from stores to guests, Order Pickup, Drive Up, and Same Day Delivery. Number of Stores and Retail Square Feet
Number of Stores
Retail Square Feet (a)(unaudited)
May 2,
2026
January 31,
2026
May 3,
2025
May 2,
2026
January 31,
2026
May 3,
2025170,000 or more sq. ft.
274
273
273
49,045
48,824
48,82450,000 to 169,999 sq. ft.
1,581
1,576
1,562
197,978
197,274
195,43649,999 or less sq. ft.
147
146
146
4,460
4,420
4,404Total
2,002
1,995
1,981
251,483
250,518
248,664(a)In thousands; reflects total square feet less office, supply chain facility, and vacant space.TARGET CORPORATIONReconciliation of Non-GAAP Financial MeasuresTo provide additional transparency, the Company has disclosed non-GAAP adjusted diluted earnings per share (Adjusted EPS), adjusted SG&A expenses, adjusted SG&A expense rate, adjusted operating income, and adjusted operating income margin rate. When applicable, these measures exclude certain discretely managed items. Management believes this information is useful in providing period-to-period comparisons of the results of Target's operations. These measures are not in accordance with, or an alternative to, generally accepted accounting principles in the United States (GAAP). The most comparable GAAP measures are diluted earnings per share, SG&A expenses, SG&A expense rate, operating income, and operating income margin rate. Adjusted EPS, Adjusted SG&A expenses, Adjusted SG&A expense rate, Adjusted operating income, and Adjusted operating income margin rate should not be considered in isolation or as a substitution for analysis of Target's results as reported in accordance with GAAP. Other companies may calculate these measures differently, or not provide similar measures, limiting the usefulness of the measures for comparisons with other companies.Reconciliation of Non-GAAPAdjusted EPS
Three Months Ended
May 2, 2026
May 3, 2025
(millions, except per share data) (unaudited)
Pretax
Net of Tax
Per Share
Pretax
Net of Tax
Per Share
ChangeGAAP diluted EPS
$ 1.71
$ 2.27
(24.5) %Adjustments
Interchange fee settlements (a)
$ —
$ —
$ —
$ (593)
$ (441)
$ (0.97)
Adjusted EPS
$ 1.71
$ 1.30
31.6 % Reconciliation of Non-GAAP
Adjusted SG&A Expenses and
Adjusted Operating Income
Three Months Ended
May 2, 2026
May 3, 2025
SG&A Expenses
Operating Income
SG&A Expenses
Operating Income(dollars in millions) (unaudited)
Dollars
Rate
Dollars
Rate
Dollars
Rate
Dollars
RateReported, GAAP measure
$ 5,562
21.9 %
$ 1,135
4.5 %
$ 4,591
19.3 %
$ 1,472
6.2 %Adjustments
Interchange fee settlements (a)
—
—
—
—
593
2.5
(593)
(2.5)Adjusted, Non-GAAP measure
$ 5,562
21.9 %
$ 1,135
4.5 %
$ 5,183
21.7 %
$ 879
3.7 %Note: Amounts may not foot due to rounding.(a)Includes gains, net of legal fees, related to settlements during the first quarter of 2025 of credit card interchange fee litigation matters in which the Company was a plaintiff. The adjustment removes the favorable impact of the settlement gains from prior-year EPS, SG&A Expenses and Operating Income. We have also disclosed after-tax ROIC, which is a ratio based on GAAP information, with the exception of the add-back of operating lease interest to operating income. We believe this metric is useful in assessing the effectiveness of our capital allocation over time. Other companies may calculate ROIC differently, limiting the usefulness of the measure for comparisons with other companies.After-Tax Return on Invested Capital
(dollars in millions) (unaudited)
Trailing Twelve Months
Numerator
May 2, 2026
May 3, 2025
Operating income
$ 4,781
$ 5,742
+ Net other income
84
102
EBIT
4,865
5,844
+ Operating lease interest (a)
173
165
- Income taxes (b)
1,103
1,373
Net operating profit after taxes
$ 3,935
$ 4,636
Denominator
May 2, 2026
May 3, 2025
May 4, 2024Current portion of long-term debt and other borrowings
$ 1,133
$ 1,139
$ 2,614 + Noncurrent portion of long-term debt
14,282
14,334
13,487 + Shareholders' investment
16,395
14,947
13,840 + Operating lease liabilities (c)
3,792
3,922
3,723 - Cash and cash equivalents
3,534
2,887
3,604Invested capital
$ 32,068
$ 31,455
$ 30,060Average invested capital (d)
$ 31,761
$ 30,757
After-tax return on invested capital (e)
12.4 %
15.1 %
(a)Represents the add-back to operating income driven by the hypothetical interest expense we would incur if the property under our operating leases was owned or accounted for under finance leases. Calculated using the discount rate for each lease and recorded as a component of rent expense within Operating Income. Operating lease interest is added back to Operating Income in the ROIC calculation to control for differences in capital structure between us and our competitors.(b)Calculated using the effective tax rates, which were 21.9 percent and 22.8 percent for the trailing twelve months ended May 2, 2026, and May 3, 2025, respectively. For the twelve months ended May 2, 2026, and May 3, 2025, includes tax effect of $1.1 billion and $1.3 billion, respectively, related to EBIT, and $38 million related to operating lease interest.(c)Total short-term and long-term operating lease liabilities included within Accrued and Other Current Liabilities and Noncurrent Operating Lease Liabilities, respectively.(d)Average based on the invested capital at the end of the current period and the invested capital at the end of the comparable prior period.(e)For the trailing twelve months ended May 2, 2026, includes the impact of business transformation costs incurred within the trailing twelve-month period, which decreased after-tax ROIC by 0.6 percentage points. For the trailing twelve months ended May 3, 2025, includes the impact of after-tax net gains on interchange fee settlements, which increased after-tax ROIC by 1.4 percentage points. Business transformation costs are described in our Annual Report on Form 10-K for the year ended January 31, 2026. Note (a) to the Operating Metrics table provides additional information about interchange fee settlements.2026 GAAP EPS, SG&A expenses, SG&A expense rate, operating income, and operating (income) margin rate may include the impact of certain discrete items, which may be excluded in calculating Adjusted EPS, Adjusted SG&A expenses, Adjusted SG&A expense rate, Adjusted operating income, and Adjusted operating income margin rate. The guidance does not currently reflect any such discrete items, which are subject to variability and therefore cannot be reconciled without unreasonable efforts. In the past, these items have included both gains and losses, including certain asset impairments, severance, and other items that are discretely managed.Reconciliation of Non-GAAPAdjusted EPS Guidance
(per share) (unaudited)
Full Year 2026GAAP diluted earnings per share guidance
$7.50 - $8.50Estimated adjustments
Other (a)
Adjusted diluted earnings per share guidance
$7.50 - $8.50(a)The guidance does not currently reflect any discrete items. View original content to download multimedia:https://www.prnewswire.com/news-releases/target-corporation-reports-first-quarter-earnings-302776795.htmlSOURCE Target Corporation Original: Target Corporation Reports First Quarter Earnings
US Market News
3月前
Vertiv Holdings, Lumentum Holdings, Coherent, and EchoStar Set to Join S&P 500; Others to Join S&P 100, S&P MidCap 400, and S&P SmallCap 600March 6, 2026 6:39 PM
PR Newswire (US)
NEW YORK, March 6, 2026 /PRNewswire/ -- S&P Dow Jones Indices ("S&P DJI") will make the following changes to the S&P 100, S&P 500, S&P MidCap 400, and S&P SmallCap 600 indices:
NAPCO Security Technologies Inc. (NASD: NSSC) will replace Alexander & Baldwin Inc. (NYSE: ALEX) in the S&P SmallCap 600 effective prior to the opening of trading on Friday, March 13. An investor group comprised of MW Group and funds affiliated with DivcoWest and Blackstone Real Estate is acquiring Alexander & Baldwin in a deal that is expected to close soon, pending final closing conditions.The following changes to the S&P 100, S&P 500, S&P MidCap 400, and S&P SmallCap 600 will take effect before the market opens on Monday, March 23, as part of the quarterly rebalance. The changes ensure that each index is more representative of its market–capitalization range. The companies being removed from the S&P SmallCap 600 are no longer representative of the small–cap market space.Following is a summary of the changes that will take place prior to the open of trading on the effective date:Effective
DateIndex Name ActionCompany NameTickerGICS SectorMar 13, 2026S&P SmallCap 600AdditionNAPCO Security Technologies NSSC Information Technology Mar 13, 2026S&P SmallCap 600DeletionAlexander & Baldwin ALEX Real EstateMar 23, 2026S&P 100AdditionMicron TechnologyMU Information Technology Mar 23, 2026S&P 100AdditionLam ResearchLRCX Information Technology Mar 23, 2026S&P 100AdditionApplied MaterialsAMAT Information Technology Mar 23, 2026S&P 100AdditionGE VernovaGEV Industrials Mar 23, 2026S&P 100DeletionPayPal HoldingsPYPL Financials Mar 23, 2026S&P 100DeletionAmerican Intl GroupAIG Financials Mar 23, 2026S&P 100DeletionMetlifeMET Financials Mar 23, 2026S&P 100DeletionTargetTGT Consumer Staples Mar 23, 2026S&P 500AdditionVertiv HoldingsVRTIndustrialsMar 23, 2026S&P 500AdditionLumentum Holdings LITEInformation TechnologyMar 23, 2026S&P 500AdditionCoherentCOHRInformation TechnologyMar 23, 2026S&P 500AdditionEchoStarSATSCommunication ServicesMar 23, 2026S&P 500DeletionMatch Group MTCHCommunication ServicesMar 23, 2026S&P 500DeletionMolina HealthcareMOHHealth CareMar 23, 2026S&P 500DeletionLamb Weston Holdings LWConsumer StaplesMar 23, 2026S&P 500DeletionPaycom Software PAYCIndustrialsMar 23, 2026S&P MidCap 400AdditionSolstice Advanced Materials SOLSMaterialsMar 23, 2026S&P MidCap 400AdditionSiTime SITMInformation TechnologyMar 23, 2026S&P MidCap 400AdditionMoog MOG.AIndustrialsMar 23, 2026S&P MidCap 400AdditionInterDigital IDCCInformation TechnologyMar 23, 2026S&P MidCap 400AdditionVicor VICRIndustrialsMar 23, 2026S&P MidCap 400AdditionCareTrust REIT CTREReal EstateMar 23, 2026S&P MidCap 400DeletionLumentum Holdings LITEInformation TechnologyMar 23, 2026S&P MidCap 400DeletionCoherent COHRInformation TechnologyMar 23, 2026S&P MidCap 400DeletionEchoStar SATSCommunication ServicesMar 23, 2026S&P MidCap 400DeletionZoomInfo Technologies GTMCommunication ServicesMar 23, 2026S&P MidCap 400DeletionASGN ASGNInformation TechnologyMar 23, 2026S&P MidCap 400DeletionKemper KMPRFinancialsMar 23, 2026S&P SmallCap 600AdditionMatch Group MTCHCommunication ServicesMar 23, 2026S&P SmallCap 600AdditionMolina HealthcareMOHHealth CareMar 23, 2026S&P SmallCap 600AdditionLamb Weston Holdings LWConsumer StaplesMar 23, 2026S&P SmallCap 600AdditionPaycom Software PAYCIndustrialsMar 23, 2026S&P SmallCap 600AdditionVSE VSECIndustrialsMar 23, 2026S&P SmallCap 600AdditionArgan AGXIndustrialsMar 23, 2026S&P SmallCap 600AdditionRithm Capital RITMFinancialsMar 23, 2026S&P SmallCap 600AdditionLyft LYFTIndustrialsMar 23, 2026S&P SmallCap 600AdditionLaureate Education LAURConsumer DiscretionaryMar 23, 2026S&P SmallCap 600AdditionLife Time Group Holdings LTHConsumer DiscretionaryMar 23, 2026S&P SmallCap 600AdditionLife360 LIFInformation TechnologyMar 23, 2026S&P SmallCap 600AdditionSphere EntertainmentSPHRCommunication ServicesMar 23, 2026S&P SmallCap 600AdditionZoomInfo Technologies GTMCommunication ServicesMar 23, 2026S&P SmallCap 600AdditionASGNASGNInformation TechnologyMar 23, 2026S&P SmallCap 600AdditionKemper KMPRFinancialsMar 23, 2026S&P SmallCap 600DeletionSolstice Advanced Materials SOLSMaterialsMar 23, 2026S&P SmallCap 600DeletionSiTimeSITMInformation TechnologyMar 23, 2026S&P SmallCap 600DeletionMoog MOG.AIndustrialsMar 23, 2026S&P SmallCap 600DeletionInterDigital IDCCInformation TechnologyMar 23, 2026S&P SmallCap 600DeletionVicor CorpVICRIndustrialsMar 23, 2026S&P SmallCap 600DeletionCareTrust REIT CTREReal EstateMar 23, 2026S&P SmallCap 600DeletionDave & Buster's Entertainment PLAYConsumer DiscretionaryMar 23, 2026S&P SmallCap 600DeletionSunCoke Energy SXCMaterialsMar 23, 2026S&P SmallCap 600DeletionAH Realty Trust AHRTReal EstateMar 23, 2026S&P SmallCap 600DeletionSummit Hotel Properties INNReal EstateMar 23, 2026S&P SmallCap 600DeletionKKR Real Estate Finance Trust KREFFinancialsMar 23, 2026S&P SmallCap 600DeletionBloomin' Brands BLMNConsumer DiscretionaryMar 23, 2026S&P SmallCap 600DeletionMyriad Genetics MYGNHealth CareMar 23, 2026S&P SmallCap 600DeletionCars.com CARSCommunication ServicesMar 23, 2026S&P SmallCap 600DeletionANGI ANGICommunication ServicesABOUT S&P DOW JONES INDICESS&P Dow Jones Indices is the largest global resource for essential index-based concepts, data and research, and home to iconic financial market indicators, such as the S&P 500® and the Dow Jones Industrial Average®. More assets are invested in products based on our indices than products based on indices from any other provider in the world. Since Charles Dow invented the first index in 1884, S&P DJI has been innovating and developing indices across the spectrum of asset classes helping to define the way investors measure and trade the markets.S&P Dow Jones Indices is a division of S&P Global (NYSE: SPGI), which provides essential intelligence for individuals, companies, and governments to make decisions with confidence. For more information, visit www.spglobal.com/spdji/en/.FOR MORE INFORMATION:S&P Dow Jones Indices
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View original content:https://www.prnewswire.com/news-releases/vertiv-holdings-lumentum-holdings-coherent-and-echostar-set-to-join-sp-500-others-to-join-sp-100-sp-midcap-400-and-sp-smallcap-600-302707297.htmlSOURCE S&P Dow Jones Indices
Original: Vertiv Holdings, Lumentum Holdings, Coherent, and EchoStar Set to Join S&P 500; Others to Join S&P 100, S&P MidCap 400, and S&P SmallCap 600
US Market News
3月前
Target Corporation Reports Fourth Quarter and Full-Year 2025 EarningsMarch 3, 2026 6:30 AM
PR Newswire (US)
MINNEAPOLIS, March 3, 2026 /PRNewswire/ -- Fourth quarter net sales of $30.5 billion were in line with company expectations. Food & Beverage, Beauty and Toys delivered net sales growth in the quarter, with stronger trends in Essentials and Home compared to the third quarter. Non-merchandise sales grew over 25 percent with membership revenue more than doubling from a year ago, double-digit growth from Roundel and over 30 percent growth in marketplace. Same-day delivery powered by Target Circle 360 grew over 30 percent.Sales and traffic trends accelerated in the last two months of the quarter.Fourth quarter GAAP EPS was $2.30, including 15 cents of non-recurring business transformation costs. Adjusted EPS1 of $2.44 was favorable to last year and in line with company expectations. Full-year GAAP EPS was $8.13 compared with $8.86 last year. Adjusted EPS, which excludes non-recurring legal settlement gains and business transformation costs, was $7.57 and in line with company expectations.Target Corporation (NYSE: TGT) today announced its fourth-quarter and full-year 2025 results. The Company reported fourth-quarter GAAP earnings per share (EPS) of $2.30 and Adjusted EPS of $2.44, compared with GAAP and Adjusted EPS of $2.41 in 2024. GAAP EPS was $8.13 and Adjusted EPS was $7.57 for full-year 2025, compared with GAAP and Adjusted EPS of $8.86 in the prior year. The attached tables provide a reconciliation of non-GAAP to GAAP measures. All earnings per share figures are calculated on a diluted basis."I'm incredibly proud of how our team navigated through a challenging year in 2025, as they focused on serving our guests while positioning our business for profitable growth in 2026 and beyond," said Michael Fiddelke, chief executive officer of Target Corporation. "Our team is firmly focused on writing Target's next chapter of growth, rooted in strengthening our merchandising authority, delivering an elevated and differentiated shopping experience, advancing our use of technology, and continuing to serve and invest in our team and communities. Target saw a healthy, positive sales increase in February, serving as an important milestone on our path back to growth this year, and reinforcing my confidence in the momentum we're building and the future we're creating together."GuidanceThe Company has the following expectations for 2026:Net sales growth in a range around 2 percent compared with 2025. This expectation reflects a small increase in comparable sales, with new store and non-merchandise sales contributing more than one percentage point of growth. The company expects to grow net sales in every quarter of the year.Full-year 2026 operating income margin rate approximately 20 basis points higher than the 4.6 percent Adjusted operating income margin rate in 2025.GAAP and Adjusted EPS of $7.50 to $8.50. Based on the expected timing of certain costs, the company expects Q1 GAAP and Adjusted EPS will be flat to up slightly from last year's Adjusted EPS of $1.30, with stronger year-over-year EPS growth expected through the balance of the year.Operating ResultsFourth quarter 2025 net sales of $30.5 billion were 1.5 percent lower than Q4 2024. Fourth quarter comparable sales decreased 2.5 percent, reflecting a comparable store sales decline of 3.9 percent and a comparable digital sales increase of 1.9 percent. Operating income, which includes the impact of non-recurring items, was $1.4 billion in fourth quarter 2025, a decrease of 5.9 percent from $1.5 billion in 2024. Excluding those non-recurring items, Adjusted operating income was $1.5 billion, slightly above last year.Full-year net sales decreased 1.7 percent to $104.8 billion from $106.6 billion last year, reflecting a 2.6 percent decrease in comparable sales partially offset by sales from new stores and growth in non-merchandise sales.Fourth quarter operating income margin rate, which includes the impact of non-recurring items, was 4.5 percent in 2025 compared with 4.7 percent in 2024. Excluding those non-recurring items, Adjusted operating income margin rate was 4.8 percent in 2025. Fourth quarter gross margin rate was 26.6 percent, compared with 26.2 percent in 2024, reflecting lower inventory shrink, lower supply chain and digital fulfillment costs, and growth in advertising and other revenues, partially offset by the net impact of merchandising activities, including higher product and import costs.Full-year operating income, which includes the impact of non-recurring items, of $5.1 billion in 2025 declined 8.1 percent from $5.6 billion last year. Full-year gross margin rate was 27.9 percent, compared with 28.2 percent in 2024, reflecting pressures from merchandising activities, driven primarily by higher markdowns and purchase order cancellation costs, and pressure from category mix, partially offset by lower inventory shrink and growth in advertising and other revenues. Fourth quarter SG&A expense rate, which includes the impact of non-recurring items, was 19.9 percent in 2025, compared with 19.4 percent in 2024. Excluding those non-recurring items, Adjusted SG&A expense rate was 19.6 percent in Q4 2025. Full-year SG&A expense rate, which includes the impact of non-recurring items, was 20.6 percent in 2025, compared with 20.6 percent in 2024. Excluding those non-recurring items, Adjusted SG&A expense rate was 20.9 percent in 2025. Both periods reflect the deleveraging impact of lower sales partially offset by disciplined cost management, as adjusted SG&A expense dollars in both periods were lower than in 2024.Interest Expense and TaxesThe Company's fourth quarter 2025 net interest expense was $99 million, compared with $90 million last year. Full-year 2025 net interest expense was $445 million, compared with $411 million in 2024. For both the fourth quarter and the full-year, the increased expense reflects higher average debt levels in the current year.Fourth quarter 2025 effective income tax rate was 20.1 percent, compared with 21.5 percent last year, reflecting the benefit of additional tax credits in the current year. The Company's full-year 2025 effective income tax rate was 22.3 percent compared with 22.2 percent in 2024, reflecting higher discrete tax expenses and higher global tax minimums, primarily offset by the benefit of additional tax credits in the current year.Capital Deployment and Return on Invested CapitalThe Company paid dividends of $516 million in the fourth quarter, compared with $513 million last year, reflecting a 1.8 percent increase in the dividend per share, partially offset by the impact of a lower average share count.The Company did not repurchase any shares in the fourth quarter. As of the end of the fourth quarter, the Company had approximately $8.3 billion of remaining capacity under the repurchase program approved by Target's Board of Directors in August 2021.For the trailing twelve months through fourth quarter 2025, after-tax return on invested capital (ROIC) was 13.8 percent, compared with 15.4 percent for the twelve months through fourth quarter 2024. The tables in this release provide additional information about the Company's ROIC calculation.Webcast DetailsTarget will webcast its financial community meeting, including a Q&A session, beginning at 10.30 a.m. CST today. Investors and the media are invited to listen to the meeting at Corporate.Target.com/Investors (click on "2026 Financial Community Meeting, including Fourth Quarter and Full-Year 2025 Earnings" under "Events & Presentations"). A replay of the webcast will be provided when available.MiscellaneousStatements in this release regarding the Company's future financial performance, including its fiscal 2026 full-year guidance, near-term sales and profit expectations, and long-term growth expectations, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to risks and uncertainties which could cause the Company's results to differ materially. The most important risks and uncertainties are described in Item 1A of the Company's Form 10-K for the fiscal year ended February 1, 2025. Forward-looking statements speak only as of the date they are made, and the Company does not undertake any obligation to update any forward-looking statement.About TargetMinneapolis-based Target Corporation (NYSE: TGT) serves guests at nearly 2,000 stores and at Target.com, with the purpose of helping all families discover the joy of everyday life. Since 1946, Target has given 5% of its profit to communities, which today equals millions of dollars a week. Additional company information can be found by visiting the corporate website (corporate.target.com) and press center.
1 Adjusted EPS, Adjusted selling, general and administrative (SG&A) expenses, Adjusted SG&A expense rate, Adjusted operating income, and Adjusted operating income margin rate, non-GAAP financial measures, exclude the impact of certain discretely managed items, when applicable. See the tables of this release for additional information.
TARGET CORPORATION
Consolidated Statements of Operations
Three Months Ended
Twelve Months Ended
(millions, except per share data) (unaudited)
January 31,
2026
February 1,
2025
Change
January 31,
2026
February 1,
2025
ChangeNet sales
$ 30,453
$ 30,915
(1.5) %
$ 104,780
$ 106,566
(1.7) %Cost of sales
22,343
22,802
(2.0)
75,511
76,502
(1.3)Selling, general and administrative expenses
6,049
6,000
0.8
21,535
21,969
(2.0)Depreciation and amortization (exclusive of
depreciation included in cost of sales)
681
646
5.3
2,617
2,529
3.5Operating income
1,380
1,467
(5.9)
5,117
5,566
(8.1)Net interest expense
99
90
9.6
445
411
8.2Net other income
(28)
(29)
(5.3)
(95)
(106)
(9.6)Earnings before income taxes
1,309
1,406
(6.9)
4,767
5,261
(9.4)Provision for income taxes
263
303
(13.0)
1,062
1,170
(9.2)Net earnings
$ 1,046
$ 1,103
(5.2) %
$ 3,705
$ 4,091
(9.4) %Basic earnings per share
$ 2.31
$ 2.42
(4.4) %
$ 8.16
$ 8.89
(8.2) %Diluted earnings per share
$ 2.30
$ 2.41
(4.5) %
$ 8.13
$ 8.86
(8.2) %Weighted average common shares outstanding
Basic
453.0
456.8
(0.8) %
454.1
460.4
(1.4) %Diluted
455.1
458.4
(0.7) %
455.6
461.8
(1.4) %Antidilutive shares
1.3
0.2
2.1
0.5
Dividends declared per share
$ 1.14
$ 1.12
1.8 %
$ 4.54
$ 4.46
1.8 % TARGET CORPORATION
Consolidated Statements of Financial Position(millions, except footnotes) (unaudited)
January 31,
2026
February 1,
2025Assets
Cash and cash equivalents
$ 5,488
$ 4,762Inventory
12,304
12,740Other current assets
2,213
1,952Total current assets
20,005
19,454Property and equipment, net
33,749
33,022Operating lease assets
3,703
3,763Other noncurrent assets
2,033
1,530Total assets
$ 59,490
$ 57,769Liabilities and shareholders' investment
Accounts payable
$ 12,622
$ 13,053Accrued and other current liabilities
6,478
6,110Current portion of long-term debt and other borrowings
2,130
1,636Total current liabilities
21,230
20,799Long-term debt and other borrowings
14,326
14,304Noncurrent operating lease liabilities
3,462
3,582Deferred income taxes
2,265
2,303Other noncurrent liabilities
2,042
2,115Total noncurrent liabilities
22,095
22,304Shareholders' investment
Common stock
38
38Additional paid-in capital
7,247
6,996Retained earnings
9,297
8,090Accumulated other comprehensive loss
(417)
(458)Total shareholders' investment
16,165
14,666Total liabilities and shareholders' investment
$ 59,490
$ 57,769
Common Stock Authorized 6,000,000,000 shares, $0.0833 par value; 452,840,187 and 455,566,995 shares issued and outstanding as of January 31, 2026, and February 1, 2025, respectively.
Preferred Stock Authorized 5,000,000 shares, $0.01 par value; no shares were issued or outstanding during any period presented. TARGET CORPORATION
Consolidated Statements of Cash Flows
Twelve Months Ended(millions) (unaudited)
January 31,
2026
February 1,
2025Operating activities
Net earnings
$ 3,705
$ 4,091Adjustments to reconcile net earnings to cash provided by operations:
Depreciation and amortization
3,134
2,981Share-based compensation expense
281
304Deferred income taxes
(55)
(180)Noncash (gains) / losses and other, net
(100)
26Changes in operating accounts:
Inventory
436
(854)Other assets
(494)
(308)Accounts payable
(501)
1,008Accrued and other liabilities
156
299Cash provided by operating activities
6,562
7,367Investing activities
Expenditures for property and equipment
(3,727)
(2,891)Other
78
31Cash used in investing activities
(3,649)
(2,860)Financing activities
Additions to long-term debt
1,984
741Reductions of long-term debt
(1,643)
(1,139)Dividends paid
(2,053)
(2,046)Repurchase of stock
(408)
(1,007)Shares withheld for taxes on share-based compensation
(67)
(99)Cash used in financing activities
(2,187)
(3,550)Net increase in cash and cash equivalents
726
957Cash and cash equivalents at beginning of period
4,762
3,805Cash and cash equivalents at end of period
$ 5,488
$ 4,762 TARGET CORPORATION
Operating ResultsNet SalesThree Months Ended
Twelve Months Ended (millions) (unaudited)January 31,
2026
February 1,
2025
January 31,
2026
February 1,
2025Apparel & accessories$ 4,100
$ 4,344
$ 15,737
$ 16,505Beauty3,484
3,444
13,214
13,173Food & beverage6,638
6,520
24,136
23,828Hardlines6,016
6,150
15,800
15,784Home furnishings & décor4,819
5,087
15,608
16,699Household essentials4,695
4,786
18,017
18,614Other merchandise sales88
97
205
217Merchandise sales29,840
30,428
102,717
104,820Advertising revenue (a)295
190
915
649Credit card profit sharing 127
142
522
576Other191
155
626
521Net sales$ 30,453
$ 30,915
$ 104,780
$ 106,566(a) Primarily represents revenue related to advertising services provided via the Company's Roundel digital advertising business offering. Roundel services are classified as either Net Sales or as a reduction of Cost of Sales or SG&A Expenses, depending on the nature of the advertising arrangement. Operating Metrics
Three Months Ended
Twelve Months Ended(dollars in millions) (unaudited)
January 31,
2026
February 1,
2025
January 31,
2026
February 1,
2025
DollarsRate
DollarsRate
DollarsRate
DollarsRateGross margin
$ 8,11026.6 %
$ 8,11326.2 %
$ 29,26927.9 %
$ 30,06428.2 %SG&A expenses
6,04919.9
6,00019.4
21,53520.6
21,96920.6Adjusted SG&A expenses (a)
5,96019.6
6,00019.4
21,87720.9
21,96920.6Depreciation and amortization
(exclusive of depreciation
included in cost of sales)
6812.2
6462.1
2,6172.5
2,5292.4Operating income
1,3804.5
1,4674.7
5,1174.9
5,5665.2Adjusted operating income (a)
1,4704.8
1,4674.7
4,7754.6
5,5665.2Note: Gross margin is calculated as Net Sales less Cost of Sales. All rates are calculated by dividing the applicable amount by Net Sales.(a)Adjusted SG&A expenses, Adjusted SG&A expense rate, Adjusted operating income, and Adjusted operating income margin rate, which are non-GAAP measures, exclude the impact of certain items. Management believes that these measures are useful in providing period-to-period comparisons of the results of our operations. The Reconciliation of Non-GAAP Financial Measures tables provide additional information.Sales MetricsComparable sales include all Merchandise Sales, except sales from stores open less than 13 months or that have been closed. Digitally originated sales include all Merchandise Sales initiated through mobile/computer applications and the Company's websites.Comparable Sales
Three Months Ended
Twelve Months Ended(unaudited)
January 31,
2026
February 1,
2025
January 31,
2026
February 1,
2025Comparable sales change
(2.5) %
1.5 %
(2.6) %
0.1 %Drivers of change in comparable sales:
Number of transactions
(2.9)
2.1
(2.2)
1.4Average transaction amount
0.4
(0.6)
(0.4)
(1.3)
Comparable Sales by Channel
Three Months Ended
Twelve Months Ended(unaudited)
January 31,
2026
February 1,
2025
January 31,
2026
February 1,
2025Stores originated comparable sales change
(3.9) %
(0.5) %
(4.0) %
(1.6) %Digitally originated comparable sales change
1.9
8.7
3.1
7.5
Merchandise Sales by Channel
Three Months Ended
Twelve Months Ended(unaudited)
January 31,
2026
February 1,
2025
January 31,
2026
February 1,
2025Stores originated
76.3 %
77.2 %
79.4 %
80.4 %Digitally originated
23.7
22.8
20.6
19.6Total
100 %
100 %
100 %
100 %
Merchandise Sales by Fulfillment Channel
Three Months Ended
Twelve Months Ended(unaudited)
January 31,
2026
February 1,
2025
January 31,
2026
February 1,
2025Stores
97.4 %
97.3 %
97.6 %
97.6 %Other
2.6
2.7
2.4
2.4Total
100 %
100 %
100 %
100 %Note: Sales fulfilled by stores include in-store purchases and digitally originated sales fulfilled by shipping
merchandise from stores to guests, Order Pickup, Drive Up, and Same Day Delivery.
Number of Stores and Retail Square Feet
Number of Stores
Retail Square Feet (a)(unaudited)
January 31,
2026
February 1,
2025
January 31,
2026
February 1,
2025170,000 or more sq. ft.
273
273
48,824
48,82450,000 to 169,999 sq. ft.
1,576
1,559
197,274
195,05049,999 or less sq. ft.
146
146
4,420
4,404Total
1,995
1,978
250,518
248,278(a) In thousands, reflects total square feet less office, supply chain facility, and vacant space.TARGET CORPORATIONReconciliation of Non-GAAP Financial MeasuresTo provide additional transparency, the Company has disclosed non-GAAP adjusted diluted earnings per share (Adjusted EPS), adjusted SG&A expenses, adjusted SG&A expense rate, adjusted operating income, and adjusted operating income margin rate. When applicable, these measures exclude certain discretely managed items. Management believes this information is useful in providing period-to-period comparisons of the results of Target's operations. These measures are not in accordance with, or an alternative to, generally accepted accounting principles in the United States (GAAP). The most comparable GAAP measures are diluted earnings per share, SG&A expenses, SG&A expense rate, operating income, and operating income margin rate. Adjusted EPS, adjusted SG&A expenses, adjusted SG&A expense rate, adjusted operating income, and adjusted operating income margin rate should not be considered in isolation or as a substitution for analysis of Target's results as reported in accordance with GAAP. Other companies may calculate these measures differently, or not provide similar measures, limiting the usefulness of the measures for comparisons with other companies. Reconciliation of Non-GAAPAdjusted EPS
Three Months Ended
January 31, 2026
February 1, 2025
(millions, except per share data) (unaudited)
Pretax
Net of Tax
Per Share
Pretax
Net of Tax
Per Share
ChangeGAAP diluted EPS
$ 2.30
$ 2.41
(4.5) %Adjustments
Business transformation costs (a)
$ 89
$ 66
$ 0.15
$ —
$ —
$ —
Adjusted EPS
$ 2.44
$ 2.41
1.5 %
Reconciliation of Non-GAAPAdjusted EPS
Twelve Months Ended
January 31, 2026
February 1, 2025
(millions, except per share data) (unaudited)
Pretax
Net of Tax
Per Share
Pretax
Net of Tax
Per Share
ChangeGAAP diluted EPS
$ 8.13
$ 8.86
(8.2) %Adjustments
Business transformation costs (a)
$ 250
$ 187
$ 0.41
$ —
$ —
$ —
Interchange fee settlements (b)
(593)
(441)
(0.97)
—
—
—
Adjusted EPS
$ 7.57
$ 8.86
(14.5) %Note: Amounts may not foot due to rounding.(a)For the three months ended January 31, 2026, primarily represents exit costs related to excess office space. For full-year 2025, also includes employee severance and related costs, as well as asset impairments and other charges related to the termination of a commercial partnership.(b) Includes gains, net of legal fees, related to settlements during the first quarter of 2025 of credit card interchange fee litigation matters in which the Company was a plaintiff. Reconciliation of Non-GAAP Adjusted
SG&A Expenses and Adjusted
Operating IncomeThree Months EndedJanuary 31, 2026
February 1, 2025
SG&A ExpensesOperating Income
SG&A ExpensesOperating Income(dollars in millions) (unaudited)DollarsRateDollarsRate
DollarsRateDollarsRateReported, GAAP measure$ 6,04919.9 %$ 1,3804.5 %
$6,00019.4 %$1,4674.7 %Adjustments affecting comparability
Business transformation costs (89)(0.3)890.3
————Adjusted, Non-GAAP measure$ 5,96019.6 %$ 1,4704.8 %
$6,00019.4 %$1,4674.7 %
Reconciliation of Non-GAAP Adjusted
SG&A Expenses and Adjusted
Operating IncomeTwelve Months EndedJanuary 31, 2026
February 1, 2025
SG&A ExpensesOperating Income
SG&A ExpensesOperating Income(dollars in millions) (unaudited)DollarsRateDollarsRate
DollarsRateDollarsRateReported, GAAP measure$ 21,53520.6 %$ 5,1174.9 %
$21,96920.6 %$5,5665.2 %Adjustments affecting comparability
Business transformation costs(250)(0.2)2500.2
————Interchange fee settlements5930.6(593)(0.6)
————Adjusted, Non-GAAP measure$ 21,87720.9 %$ 4,7754.6 %
$21,96920.6 %$5,5665.2 %Note: Amounts may not foot due to rounding. The nature of the adjustments within this table are described below the Reconciliation of Non-GAAP Adjusted EPS tables above.The Company has also disclosed after-tax ROIC, which is a ratio based on GAAP information, with the exception of the add-back of operating lease interest to operating income. Management believes this metric is useful in assessing the effectiveness of Target's capital allocation over time. Other companies may calculate ROIC differently, limiting the usefulness of the measure for comparisons with other companies.After-Tax Return on Invested Capital
(dollars in millions) (unaudited)
Trailing Twelve Months
Numerator
January 31,
2026
February 1,
2025
Operating income
$ 5,117
$ 5,566
+ Net other income
95
106
EBIT
5,212
5,672
+ Operating lease interest (a)
172
159
- Income taxes (b)
1,199
1,297
Net operating profit after taxes
$ 4,185
$ 4,534
Denominator
January 31,
2026
February 1,
2025
February 3,
2024Current portion of long-term debt and other borrowings
$ 2,130
$ 1,636
$ 1,116 + Noncurrent portion of long-term debt
14,326
14,304
14,922 + Shareholders' investment
16,165
14,666
13,432 + Operating lease liabilities (c)
3,834
3,935
3,608 - Cash and cash equivalents
5,488
4,762
3,805Invested capital
$ 30,967
$ 29,779
$ 29,273Average invested capital (d)
$ 30,373
$ 29,526
After-tax return on invested capital (e)
13.8 %
15.4 %
(a) Represents the add-back to operating income driven by the hypothetical interest expense the Company would incur if the property under its operating leases were owned or accounted for as finance leases. Calculated using the discount rate for each lease and recorded as a component of rent expense within Operating Income. Operating lease interest is added back to Operating Income in the ROIC calculation to control for differences in capital structure between Target and its competitors.(b) Calculated using the effective tax rates, which were 22.3 percent and 22.2 percent for the trailing twelve months ended January 31, 2026, and February 1, 2025, respectively. For the twelve months ended January 31, 2026, and February 1, 2025, includes tax effect of $1.2 billion and $1.3 billion, respectively, related to EBIT, and $38 million and $35 million, respectively, related to operating lease interest.(c) Total short-term and long-term operating lease liabilities included within Accrued and Other Current Liabilities and Noncurrent Operating Lease Liabilities.(d) Average based on the invested capital at the end of the current period and the invested capital at the end of the comparable prior period.(e) For the trailing twelve months ended January 31, 2026, includes the impact of after-tax net gains on interchange fee settlements and business transformation costs, which had a net favorable impact on after-tax ROIC of 0.8 percentage points. Notes (a) and (b) to the Reconciliation of Non-GAAP Adjusted EPS tables provide additional information.2026 GAAP EPS, SG&A expenses, SG&A expense rate, operating income, and operating (income) margin rate may include the impact of certain discrete items, which may be excluded in calculating Adjusted EPS, Adjusted SG&A expenses, Adjusted SG&A expense rate, Adjusted operating income, and Adjusted operating income margin rate. The guidance does not currently reflect any such discrete items, which are subject to variability and therefore cannot be reconciled without unreasonable efforts. In the past, these items have included both gains and losses, including certain asset impairments, severance, and other items that are discretely managed.Reconciliation of Non-GAAPAdjusted EPS Guidance
(per share) (unaudited)Q1 2026
Full Year 2026GAAP diluted earnings per share guidance$ 1.30+(a)
$ 7.50 - $8.50Estimated adjustments
Other (b)$ —
$ —Adjusted diluted earnings per share guidance$ 1.30+(a)
$ 7.50 - $8.50
(a) The company expects Q1 2026 GAAP and Adjusted EPS will be flat to up slightly from last year's Adjusted EPS of $1.30. A reconciliation of Q1 2025 Adjusted EPS to Q1 2025 GAAP EPS is included in the Company's Q1 2025 financial press release, financial presentations and SEC filings, which are posted on the Company's investor relations website.(b) The guidance does not currently reflect any discrete items.
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Original: Target Corporation Reports Fourth Quarter and Full-Year 2025 Earnings