Target's profitability remains strained as gross margins have trended downward from a 30.0% peak in 2024Q2 to 26.4% in 2026Q1, reflecting significant pressure from inventory markdowns.
Target Corporation (TGT) annual income statement — 30-year revenue, gross profit & net income history
| Metric | TTM | Jan'26 | Feb'25 | Feb'24 | Jan'23 | Jan'22 | Jan'21 | Feb'20 | Feb'19 | Feb'18 | Jan'17 | Jan'16 | Jan'15 | Feb'14 | Feb'13 | Jan'12 | Jan'11 | Jan'10 | Jan'09 | Feb'08 | Feb'07 | Jan'06 | Jan'05 | Jan'04 | Feb'03 | Feb'02 | Feb'01 | Jan'00 | Jan'99 | Jan'98 | Feb'97 |
|---|
| Sales/Revenue | 107.7B | 104.78B | 106.57B | 107.41B | 109.12B | 106B | 93.56B | 78.11B | 75.36B | 72.71B | 70.27B | 73.78B | 72.62B | 71.28B | 73.3B | 69.86B | 67.39B | 65.36B | 64.95B | 63.37B | 59.49B | 52.62B | 46.84B | 42.02B | 37.41B | 39.83B | 36.9B | 33.7B | 30.66B | 27.76B | 25.37B |
| Revenue Growth % | 1.95% | -1.68% | -0.79% | -1.57% | 2.94% | 13.3% | 19.78% | 3.66% | 3.63% | 3.48% | -4.76% | 1.61% | 1.88% | -2.76% | 4.92% | 3.67% | 3.11% | 0.63% | 2.5% | 6.52% | 13.06% | 12.34% | 11.46% | 12.34% | -6.07% | 7.92% | 9.5% | 9.91% | 10.47% | 9.4% | 7.89% |
| Cost of Goods Sold | 76.14B | 75.51B | 76.5B | 77.83B | 82.31B | 74.96B | 66.18B | 54.86B | 53.3B | 51.13B | 49.15B | 52.24B | 51.28B | 50.04B | 51.03B | 48.31B | 46.59B | 45.58B | 45.77B | 42.73B | 40.11B | 35.7B | 31.45B | 28.39B | 25.5B | 27.14B | 25.3B | 23.03B | 21.09B | 20.32B | 18.63B |
| COGS % of Revenue | - | 72.07% | 71.79% | 72.46% | 75.43% | 70.72% | 70.73% | 70.24% | 70.73% | 70.31% | 69.94% | 70.8% | 70.61% | 70.2% | 69.62% | 69.14% | 69.13% | 69.74% | 70.47% | 67.44% | 67.42% | 67.85% | 67.13% | 67.55% | 68.16% | 68.15% | 68.54% | 68.33% | 68.77% | 73.21% | 73.42% |
| Gross Profit | 31.56B | 29.27B | 30.06B | 29.58B | 26.81B | 31.04B | 27.38B | 23.25B | 22.06B | 21.59B | 21.13B | 21.54B | 21.34B | 21.24B | 22.27B | 21.56B | 20.8B | 19.77B | 19.18B | 20.64B | 19.38B | 16.92B | 15.39B | 13.64B | 11.91B | 12.68B | 11.61B | 10.67B | 9.58B | 7.44B | 6.74B |
| Gross Margin % | 29.3% | 27.93% | 28.21% | 27.54% | 24.57% | 29.28% | 29.27% | 29.76% | 29.27% | 29.69% | 30.06% | 29.2% | 29.39% | 29.8% | 30.38% | 30.86% | 30.87% | 30.26% | 29.53% | 32.56% | 32.58% | 32.15% | 32.87% | 32.45% | 31.84% | 31.85% | 31.46% | 31.67% | 31.23% | 26.79% | 26.58% |
| Gross Profit Growth % | - | -2.64% | 1.62% | 10.33% | -13.62% | 13.36% | 17.79% | 5.4% | 2.17% | 2.19% | -1.94% | 0.96% | 0.47% | -4.61% | 3.28% | 3.62% | 5.21% | 3.09% | -7.04% | 6.45% | 14.58% | 9.89% | 12.89% | 14.47% | -6.08% | 9.26% | 8.76% | 11.44% | 28.78% | 10.29% | 12.59% |
| Operating Expenses | 25.54B | 24.15B | 24.5B | 23.88B | 22.97B | 22.1B | 20.84B | 18.59B | 17.95B | 17.36B | 16.26B | 20.94B | 20.46B | 20.19B | 21.58B | 20.69B | 20.05B | 18.97B | 18.29B | 20.64B | 19.38B | 16.92B | 15.39B | 13.64B | 11.91B | 12.68B | 11.61B | 10.67B | 9.58B | 7.44B | 6.74B |
| OpEx % of Revenue | - | 23.05% | 22.99% | 22.23% | 21.05% | 20.84% | 22.28% | 23.8% | 23.82% | 23.88% | 23.14% | 28.38% | 28.17% | 28.33% | 29.44% | 29.62% | 29.75% | 29.03% | 28.16% | 32.56% | 32.58% | 32.15% | 32.87% | 32.45% | 31.84% | 31.85% | 31.46% | 31.67% | 31.23% | 26.79% | 26.58% |
| Selling, General & Admin | 22.87B | 21.54B | 21.97B | 21.46B | 20.58B | 19.75B | 18.61B | 16.23B | 15.72B | 15.14B | 14.22B | 14.66B | 14.68B | 14.46B | 14.64B | 14.11B | 13.47B | 13.08B | 12.95B | 13.7B | 12.82B | 11.19B | 10.53B | 9.38B | 8.13B | 8.92B | 8.19B | 7.49B | 6.84B | 4.53B | 4.29B |
| SG&A % of Revenue | - | 20.55% | 20.62% | 19.98% | 18.86% | 18.63% | 19.9% | 20.78% | 20.87% | 20.82% | 20.23% | 19.88% | 20.21% | 20.29% | 19.98% | 20.19% | 19.99% | 20.01% | 19.95% | 21.63% | 21.55% | 21.26% | 22.49% | 22.32% | 21.74% | 22.41% | 22.19% | 22.22% | 22.32% | 16.33% | 16.91% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 4M | 2.62B | 2.53B | 2.42B | 2.38B | 2.34B | 2.23B | 2.36B | 2.22B | 2.23B | 2.04B | 6.27B | 5.78B | 5.73B | 6.94B | 6.59B | 6.58B | 5.89B | 5.33B | 6.93B | 6.57B | 5.73B | 4.86B | 4.26B | 3.78B | 3.76B | 3.42B | 3.18B | 2.73B | 2.9B | 2.45B |
| Operating Income | 6.02B | 5.12B | 5.57B | 5.71B | 3.85B | 8.95B | 6.54B | 4.66B | 4.11B | 4.22B | 4.86B | 607M | 882M | 1.05B | 684M | 866M | 757M | 804M | 894M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Margin % | 5.59% | 4.88% | 5.22% | 5.31% | 3.53% | 8.44% | 6.99% | 5.96% | 5.45% | 5.81% | 6.92% | 0.82% | 1.21% | 1.47% | 0.93% | 1.24% | 1.12% | 1.23% | 1.38% | - | - | - | - | - | - | - | - | - | - | - | - |
| Operating Income Growth % | - | -8.07% | -2.47% | 48.31% | -56.99% | 36.81% | 40.38% | 13.33% | -2.7% | -13.16% | 701.32% | -31.18% | -15.92% | 53.36% | -21.02% | 14.4% | -5.85% | -10.07% | - | - | - | - | - | - | - | - | - | - | - | - | - |
| EBITDA | 8.41B | 8.25B | 8.55B | 8.51B | 6.55B | 11.59B | 9.02B | 7.26B | 6.58B | 6.7B | 7.18B | 2.82B | 3.01B | 3.04B | 2.73B | 3B | 2.84B | 2.83B | 2.72B | 6.93B | 6.57B | 5.73B | 4.86B | 4.26B | 3.78B | 3.76B | 3.42B | 3.18B | 2.73B | 2.44B | 2.01B |
| EBITDA Margin % | 7.81% | 7.87% | 8.02% | 7.92% | 6% | 10.93% | 9.64% | 9.3% | 8.74% | 9.21% | 10.22% | 3.82% | 4.15% | 4.27% | 3.72% | 4.29% | 4.22% | 4.33% | 4.19% | 10.94% | 11.04% | 10.89% | 10.38% | 10.13% | 10.1% | 9.44% | 9.26% | 9.44% | 8.92% | 8.77% | 7.92% |
| EBITDA Growth % | -1.09% | -3.46% | 0.46% | 29.93% | -43.49% | 28.41% | 24.26% | 10.3% | -1.73% | -6.71% | 154.68% | -6.34% | -1.12% | 11.62% | -8.98% | 5.49% | 0.5% | 3.93% | -60.76% | 5.58% | 14.53% | 17.94% | 14.16% | 12.68% | 0.51% | 9.98% | 7.38% | 16.42% | 12.28% | 21.2% | 30.71% |
| D&A (Non-Cash Add-back) | 2.39B | 3.13B | 2.98B | 2.8B | 2.7B | 2.64B | 2.48B | 2.6B | 2.47B | 2.48B | 2.32B | 2.21B | 2.13B | 2B | 2.04B | 2.13B | 2.08B | 2.02B | 1.83B | 1.66B | 1.5B | 1.41B | 1.26B | 1.1B | 967M | 1.08B | 940M | 854M | 780M | 693M | 650M |
| EBIT | 6.09B | 5.21B | 5.67B | 5.8B | 3.9B | 9.33B | 6.52B | 4.67B | 4.14B | 4.28B | 4.95B | 5.53B | 4.54B | 5.17B | 5.74B | 5.32B | 5.25B | 4.68B | 4.43B | 5.27B | 5.07B | 4.32B | 3.6B | 3.16B | 2.81B | 2.68B | 2.48B | 2.33B | 1.95B | 1.74B | 1.36B |
| Net Interest Income | -429M | -445M | -411M | -502M | -478M | -421M | -977M | -477M | -461M | -653M | -991M | -607M | -882M | -1.05B | -684M | -866M | -757M | -801M | -866M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 3M | 3M | 3M | 28M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 429M | 445M | 411M | 502M | 478M | 421M | 977M | 477M | 461M | 653M | 991M | 607M | 882M | 1.05B | 684M | 866M | 757M | 804M | 894M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -364M | -350M | -305M | -410M | -430M | -39M | -993M | -468M | -434M | -594M | -903M | 4.32B | 2.77B | 3.07B | 4.37B | 3.59B | 3.74B | 3.07B | 2.64B | 4.63B | 4.5B | 3.86B | 3.03B | 2.6B | 2.23B | 2.21B | 2.05B | 1.94B | 1.56B | 1.33B | 783M |
| Pretax Income | 5.66B | 4.77B | 5.26B | 5.3B | 3.42B | 8.91B | 5.55B | 4.19B | 3.68B | 3.63B | 3.96B | 4.92B | 3.65B | 4.12B | 5.06B | 4.46B | 4.5B | 3.87B | 3.54B | 4.63B | 4.5B | 3.86B | 3.03B | 2.6B | 2.23B | 2.21B | 2.05B | 1.94B | 1.56B | 1.33B | 783M |
| Pretax Margin % | 5.25% | 4.55% | 4.94% | 4.93% | 3.13% | 8.4% | 5.93% | 5.36% | 4.88% | 4.99% | 5.64% | 6.67% | 5.03% | 5.78% | 6.9% | 6.38% | 6.67% | 5.92% | 5.44% | 7.3% | 7.56% | 7.34% | 6.47% | 6.19% | 5.95% | 5.54% | 5.56% | 5.74% | 5.07% | 4.78% | 3.09% |
| Income Tax | 1.27B | 1.06B | 1.17B | 1.16B | 638M | 1.96B | 1.18B | 921M | 746M | 722M | 1.29B | 1.6B | 1.2B | 1.43B | 1.74B | 1.53B | 1.57B | 1.38B | 1.32B | 1.78B | 1.71B | 1.45B | 1.15B | 984M | 851M | 839M | 789M | 751M | 594M | 524M | 309M |
| Effective Tax Rate % | 22.39% | 22.28% | 22.24% | 21.88% | 18.67% | 22.02% | 21.24% | 21.98% | 20.29% | 19.89% | 32.69% | 32.54% | 32.96% | 34.63% | 34.43% | 34.27% | 35.04% | 35.74% | 37.39% | 38.4% | 38.03% | 37.62% | 37.81% | 37.8% | 38.21% | 38.02% | 38.43% | 38.79% | 38.17% | 39.52% | 39.46% |
| Net Income | 4.39B | 3.71B | 4.09B | 4.14B | 2.78B | 6.95B | 4.37B | 3.28B | 2.94B | 2.91B | 2.73B | 3.36B | -1.64B | 1.97B | 3B | 2.93B | 2.92B | 2.49B | 2.21B | 2.85B | 2.79B | 2.41B | 3.2B | 1.81B | 1.62B | 1.37B | 1.26B | 1.14B | 935M | 751M | 463M |
| Net Margin % | 4.08% | 3.54% | 3.84% | 3.85% | 2.55% | 6.55% | 4.67% | 4.2% | 3.9% | 4.01% | 3.89% | 4.56% | -2.25% | 2.77% | 4.09% | 4.19% | 4.33% | 3.81% | 3.41% | 4.5% | 4.68% | 4.58% | 6.83% | 4.3% | 4.34% | 3.43% | 3.43% | 3.39% | 3.05% | 2.71% | 1.82% |
| Net Income Growth % | 11.81% | -9.44% | -1.14% | 48.85% | -59.98% | 59.02% | 33.13% | 11.71% | 0.79% | 6.58% | -18.7% | 305.56% | -183% | -34.28% | 2.39% | 0.31% | 17.36% | 12.38% | -22.29% | 2.22% | 15.74% | -24.7% | 76.78% | 11.46% | 18.64% | 8.23% | 10.49% | 22.35% | 24.5% | 62.2% | 48.87% |
| Net Income (Continuing) | 4.39B | 3.71B | 4.09B | 4.14B | 2.78B | 6.95B | 4.37B | 3.27B | 2.93B | 2.91B | 2.67B | 3.32B | 2.45B | 2.69B | 3.31B | 2.93B | 2.92B | 2.49B | 2.21B | 2.85B | 2.79B | 2.41B | 1.89B | 1.62B | 1.38B | 1.37B | 1.26B | 1.19B | 962M | 802M | 474M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 12M | 7M | 6M | 68M | 42M | -4.08B | -723M | -316M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.31B | 190M | 247M | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 9.62 | 8.13 | 8.86 | 8.94 | 5.98 | 14.10 | 8.64 | 6.36 | 5.51 | 5.29 | 4.70 | 5.31 | -2.56 | 3.07 | 4.52 | 4.28 | 4.00 | 3.30 | 2.86 | 3.33 | 3.21 | 2.71 | 3.51 | 1.76 | 1.78 | 1.21 | 1.38 | 1.23 | 0.99 | 0.80 | 0.48 |
| EPS Growth % | 12.35% | -8.24% | -0.89% | 49.5% | -57.59% | 63.19% | 35.85% | 15.43% | 4.16% | 12.55% | -11.49% | 307.42% | -183.39% | -32.08% | 5.61% | 7% | 21.21% | 15.38% | -14.11% | 3.74% | 18.45% | -22.79% | 99.43% | -1.12% | 47.11% | -12.32% | 12.2% | 24.24% | 23.75% | 66.67% | 45.45% |
| EPS (Basic) | - | 8.16 | 8.89 | 8.96 | 6.02 | 14.23 | 8.73 | 6.42 | 5.56 | 5.32 | 4.74 | 5.35 | -2.58 | 3.10 | 4.57 | 4.31 | 4.03 | 3.31 | 2.87 | 3.37 | 3.23 | 2.73 | 3.54 | 1.78 | 1.79 | 1.22 | 1.40 | 1.25 | 1.04 | 0.84 | 0.51 |
| Diluted Shares Outstanding | 456.6M | 455.6M | 461.8M | 462.8M | 464.7M | 492.7M | 505.4M | 515.6M | 533.2M | 550.85M | 582.5M | 632.9M | 640.1M | 641.8M | 663.3M | 683.9M | 729.4M | 754.8M | 773.6M | 850.8M | 868.6M | 889.2M | 912.1M | 1.03B | 914.3M | 1.13B | 913M | 930.08M | 934.6M | 927.4M | 964.58M |
| Basic Shares Outstanding | 454.4M | 454.1M | 460.4M | 461.5M | 462.1M | 488.1M | 500.6M | 510.9M | 528.6M | 547.74M | 577.6M | 627.7M | 634.7M | 635.1M | 656.7M | 679.1M | 723.6M | 752M | 770.4M | 845.4M | 861.9M | 882M | 903.8M | 1.02B | 908M | 1.12B | 903.5M | 902.78M | 880M | 872.2M | 907.84M |
| Dividend Payout Ratio | - | 55.41% | 50.01% | 48.6% | 66.04% | 22.29% | 30.75% | 40.54% | 45.45% | 45.92% | 49.3% | 40.5% | - | 51.04% | 28.98% | 25.61% | 20.86% | 19.94% | 21% | 15.51% | 13.63% | 13.21% | 8.51% | 13.1% | 13.43% | 14.84% | 15.03% | 17.05% | 19.04% | 21.97% | 33.48% |
Quick answers to the most common questions about buying TGT stock.
For fiscal year 2025, Target Corporation (TGT) reported total revenue of $104.78B. This represents a 313.0% increase compared to $25.37B in 1996.
Target Corporation (TGT) is profitable, generating $3.71B in net income for the fiscal year ending 2025 with a net profit margin of 3.5%.
Target Corporation (TGT) reported an operating income of $5.12B, resulting in an operating profit margin of 4.9%. This margin reflects the operational efficiency of the business before interest and taxes.
Target Corporation (TGT) generated $29.27B in gross profit for the year, representing a gross profit margin of 27.9%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Discretionary spending volatility
Metrics are mathematically derived from official filings.
Top Line Growth Remains Stagnant
According to recent financial filings, Target's revenue growth has fluctuated between a 3.1% contraction and a 2.9% expansion over the last ten quarters, indicating that the company is struggling to maintain consistent top-line momentum in an increasingly price-sensitive and competitive U.S. retail environment.
The lack of sustained revenue growth suggests that Target's core discretionary categories are failing to offset the lower-margin volume gains in food and essentials. Investors should monitor whether the recent shift toward high-frequency, low-margin items represents a permanent change in the company's revenue mix or a temporary defensive posture.
Structural Margin Compression Remains Evident
As reported in quarterly income statements, Target's gross margin has trended downward from a peak of 30.0% in 2024Q2 to 26.4% in 2026Q1, reflecting significant pressure from inventory markdowns and a shift in consumer purchasing behavior toward lower-margin essential goods over higher-margin discretionary items.
The erosion of gross margin suggests that the company's 'curated-design' moat may be losing its pricing power against more aggressive discount competitors. This trend warrants further investigation into whether the current promotional environment is a structural necessity to clear inventory or a sign of weakening brand loyalty.
Operating Leverage Constrained by Costs
Based on the provided income statement data, Target's operating income has failed to scale proportionally with gross profit, as evidenced by operating margins compressing from 6.4% in 2024Q2 to 5.3% in 2026Q1, highlighting the difficulty of managing a large, fixed-cost physical store footprint.
The inability to expand operating margins despite the maturation of the store-as-hub fulfillment model suggests that last-mile and labor costs are offsetting efficiency gains. This may indicate that the company's current operating structure is not yet optimized for the evolving digital-first shopping habits of its core demographic.
Discretionary Exposure Risks Margin Stability
Analysis of the income statement reveals that Target's earnings quality is highly sensitive to discretionary spending, with net income volatility appearing more pronounced than that of its defensive peers, suggesting that the market may be misclassifying the company's long-term resilience in a stagflationary environment.
Short-sellers would likely focus on the persistent reliance on vendor credits and the potential for further 'shrink' accruals to negatively impact future bottom-line results. The company's exposure to non-essential categories makes it uniquely vulnerable to a sustained pullback in consumer sentiment, which could lead to further margin compression.