Target's second-quarter profit more than doubled to $1.87 billion, or $4.11 per share, as a $994 million tariff refund added $1.65 to earnings per share and digital sales climbed on strong same-day delivery. Comparable sales rose 3.8% for the three months ended Aug. 1, 2026.
The refund's one-time lift
The tariff refund, a discrete boost tied to import duties, accounted for roughly 40% of the quarter's earnings per share. Without it, Target's operating performance still improved, but the refund is separate from the company's day-to-day momentum. A year earlier, net income came to $935 million, or $2.05 per share.
Digital outpaces stores
Digital comparable sales rose 8.7% in the quarter, driven by increased same-day delivery activity. That growth handily beat comparable store sales, which were up 2.7%. The gap between the two channels widened as more shoppers used Target's delivery options rather than walking into stores.
Sales and guidance
Net sales increased 5.3% to $26.54 billion for the quarter. The company raised its full-year net sales growth outlook to about 5% and set full-year earnings per share guidance in a range of $9.90 to $10.90. That range includes the benefit of the tariff refund, which is a one-time event and not part of ongoing operations.
Target's next quarterly report will show whether digital growth can hold its pace and whether the refund's absence leaves a noticeable dent in year-over-year comparisons.
