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Target (TGT) FY2025 results: revenue $104.8 billion, down 1.7% on the year

Target Corp. (TGT) reported revenue of $104.8 billion for fiscal 2025, the year ended 31 January 2026, down 1.7% on the year before. Net income was $3.7 billion, down 9.4%, and diluted earnings per share $8.13. The figures are the company's own, from the 10-K it filed with the SEC on 11 March 2026.

Revenue
$104.8 billion
-1.7% on the year
FY2018FY2025
Operating margin
4.9%
5.2% a year earlier
FY2018FY2025
Net income
$3.7 billion
-9.4% on the year
FY2018FY2025
Diluted EPS
$8.13
-8.2% on the year
FY2018FY2025

this yearthe year beforeHover a bar for its figure.

The year in brief

What management said about the year

Guidance figures: 4 new.

  • Fourth quarter sales fell 1.5 percent: Q4 net sales were $30.5 billion. Comparable sales fell 2.5 percent, with stores down 3.9 percent and digital up 1.9 percent.
  • Full-year sales and EPS declined: Full-year net sales were $104.8 billion versus $106.6 billion. GAAP diluted EPS was $8.13 versus $8.86; Adjusted EPS was $7.57.
  • Non-merchandise sales grew over 25 percent: Membership revenue more than doubled from a year earlier, within non-merchandise sales.
  • Full-year gross margin fell on markdowns: Full-year gross margin fell to 27.9 percent, driven mainly by markdowns and purchase order cancellation costs, plus category mix.
  • Transactions fell 2.9 percent in Q4: Q4 transactions fell 2.9 percent after rising 2.1 percent a year earlier. Average transaction amount rose 0.4 percent.
Read the Q4 FY2025 earnings call summary

From this 10-K

Target is a general merchandise and grocery retailer selling through its own stores and its digital channels, run as a single segment. It was incorporated in Minnesota in 1902 and calls its customers guests. It ended the year with 1,995 stores, having opened 18 and closed one, against 1,978 a year earlier. Since 1946 it has given 5 percent of its profit to communities.

Target Corp., the 10-K for 2026

Target is a general merchandise and grocery retailer selling through its own stores and its digital channels, run as a single segment. It was incorporated in Minnesota in 1902 and calls its customers guests. It ended the year with 1,995 stores, having opened 18 and closed one, against 1,978 a year earlier. Since 1946 it has given 5 percent of its profit to communities.

The stores

Retail square feet totalled 250,518 thousand at 31 January 2026. By size, 273 stores are 170,000 square feet or larger, 1,576 run between 50,000 and 169,999 square feet, and 146 are smaller than that. Most stores carry a wide assortment of general merchandise and groceries, and most of those above 170,000 square feet carry a full grocery line comparable to a traditional supermarket. Stores are also the fulfilment network: they filled more than 97 percent of total merchandise sales in each of the last three years, and the majority of digitally originated sales, through Order Pickup, Drive Up and Same-Day Delivery. Most merchandise reaches the stores through the company's own distribution centres, with certain food and beverage items shipped direct by vendors.

Merchandise and brands

The business is managed across six core merchandise categories. National brands account for most of what is sold, with approximately thirty percent of merchandise sales coming from owned and exclusive brands, among them Good & Gather, up & up, Cat & Jack, Threshold, Universal Thread, Goodfellow & Co, All in Motion and Hearth & Hand with Magnolia. Target Plus is a third-party digital marketplace that widens the online assortment. Design and creative partnerships and shop-in-shop arrangements run with partners including Apple, Levi's and Ulta Beauty, in-store amenities include Starbucks and Target Optical, and CVS Pharmacy operates pharmacies and clinics inside the stores under a perpetual operating agreement that pays annual occupancy income. In 2025 the company and Ulta Beauty agreed to end the shop-in-shop agreement when it expires in August 2026.

Sourcing and tariffs

Global sourcing operations work from offices in 13 countries, with a particular focus on owned brands, covering design, development, manufacturing, product quality and safety and cost management. Approximately one-half of the merchandise offered is sourced from outside the United States, with China the largest country of origin, and Target is the importer of record for most owned and exclusive and certain national brand merchandise, which makes it responsible for customs classification, import valuation and duties. Against tariffs it negotiates with suppliers, diversifies sourcing and reviews assortment and pricing, and it uses the first sale customs valuation method on certain qualifying direct imports, paying duty on the price it pays its vendors and later claiming refunds on cycles that often extend beyond a year.

Circle and Roundel

Beyond merchandise, the company earns from Roundel, which sells advertising services to vendors and other third parties including marketplace sellers, from credit card profit sharing on the Target Circle Card programme, from the Target Plus marketplace and from membership fees. Target Circle has three levels: a free membership carrying deals, instant discounts and rewards; the Target Circle Card, which gives a 5 percent discount on nearly all purchases along with free standard and 2-day shipping on eligible digital orders and extended returns; and a paid Target Circle 360 membership, which adds unlimited same-day delivery on eligible orders over $35 from Target and other retailers.

People and the year

Approximately 415,000 full-time, part-time and seasonal team members were employed at 31 January 2026, with employment peaking in the holiday season, and independent contractors are used as well, most notably in the Shipt subsidiary. A larger share of annual net sales is traditionally earned in the fourth quarter because it includes the November and December holiday selling period.

From Target's annual report on Form 10-K for the year ended 31 January 2026. The filing

Written from the 10-K filed 11 March 2026: read the full 10-K.

The four quarters: Q1 FY2025 · Q2 FY2025 · Q3 FY2025 · Q4 FY2025

Income statement (profit and loss)

$ millionFY2025FY2024FY2023On the yearLast 8 years
Revenue104,780106,566107,412-1.7%
Cost of revenue75,51176,50277,736-1.3%
Gross profit29,26930,06429,676-2.6%
Gross margin27.9%28.2%27.6%
Selling, general and administrative21,53521,96921,462-2.0%
Operating income5,1175,5665,707-8.1%
Operating margin4.9%5.2%5.3%
Interest expense445411502+8.3%
Pre-tax income4,7675,2615,297-9.4%
Income tax1,0621,1701,159-9.2%
Effective tax rate22.3%22.2%21.9%
Net income3,7054,0914,138-9.4%
Net margin3.5%3.8%3.9%
Diluted EPS$8.13$8.86$8.94-8.2%
$ million except per share.
Read moreFree cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ millionFY2025FY2024FY2023On the yearLast 8 years
Operating cash flow6,5627,3678,621-10.9%
Capital expenditure3,7272,8914,806+28.9%
Free cash flow2,8354,4763,815-36.7%
Free cash flow margin2.7%4.2%3.6%
Cash from investing-3,649-2,860-4,760
Cash from financing-2,187-3,550-2,285
Depreciation and amortisation3,1342,9812,801+5.1%
Share-based compensation281304251-7.6%
Buybacks4081,0070.0-59.5%
Dividends paid2,0532,0462,011+0.3%
Dividend per share$4.54$4.46$4.38+1.8%
Diluted shares, weighted456m462m463m-1.3%
Shares outstanding at period end453m456m462m-0.6%

Balance sheet

$ millionFY2025FY2024FY2023On the yearLast 8 years
Shareholders' equity16,16514,66613,432+10.2%
Debt14,39813,90414,151+3.6%
Operating lease liabilities3,4623,5823,279-3.4%
Finance lease liabilities1,9822,0251,894-2.1%
Other liabilities23,48323,59222,600-0.5%
Total liabilities and equity59,49057,76955,356+3.0%
Fixed assetsn/an/a33,096
Goodwill6316316310.0%
Investments4,6113,8932,897+18.4%
Cash and equivalents5,4884,7623,805+15.2%
Inventory12,30412,74011,886-3.4%
Other assets36,45635,7433,041+2.0%
Total assets59,49057,76955,356+3.0%

10-K for the year ended 31 January 2026, filed 11 March 2026: the filing.