Target Corp

corporate.target.com

What Do They Do?

Sells fashionable merchandise, everyday essentials, and groceries to shoppers through stores and digital channels.

How Do They Make Money?

Most revenue comes from merchandise sales: shoppers pay at store checkout, or when digital orders are delivered or picked up.

revenue

Segment	Share	How money arrives
Merchandise sales Sold outright	98% FY2022: 99%	Sold outright
Advertising revenue	0.9% FY2022: 0.4%
Credit card profit sharing	0.5% FY2022: 0.7%
Other	0.6% FY2022: 0.4%

Who Are Their Customers?

Shoppers buy merchandise through Target stores and digital channels, including the Target Plus marketplace. Digital orders can be picked up in stores, shipped, or delivered the same day.

Do Revenues Turn Into Profits?

Yes. It kept 4 cents of every revenue dollar as net income in FY2025 and turned 3 cents into free cash flow.

Operating income, FY2025

5% of revenue

▼ −8% vs FY2024 ($5.6B, 5%)

Net income, FY2025

4% of revenue

▼ −9% vs FY2024 ($4.1B, 4%)

Free cash flow, FY2025

3% of revenue

▼ −37% vs FY2024 ($4.5B, 4%)

How Are They Changing?

Since the FY2025 annual report

Latest quarter: Q2 FY2026, the three months to Aug 1, 2026

Revenue: ▲ +5%; vs $25.2B in Q2 FY2025
Net income: ▲ +101%; vs $935M in Q2 FY2025

Product share of revenue vs 98.1% in Q2 FY2025

Aug 19, 2026 Target raises full-year sales growth guidance and updates its EPS outlook The company raised full-year sales growth guidance and updated its EPS range.

Flat. Revenue was $104.8B in FY2025, about the same as the $106B of FY2021.

Revenue over time

Merchandise sales Advertising revenue Credit card profit sharing Other Hardlines Other Home Furnishings and Decor Apparel and Accessories Food and beverage Beauty and household essentials

$200B$100B$0

FY2021 FY2022 FY2023 FY2024 FY2025

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