Short answer
Target Corporation (TGT) filed its fiscal 2026 10-K annual report with the SEC on Mar 11, 2026. It reported revenue of $104.8B (−1.7% year over year) and net income of $3.7B.
- Top risk flagged: IEEPA tariff ruling (Feb 2026 Supreme Court) invalidated tariff authority; replacement Section 122 tariffs imposed, with ~50% of merchandise sourced outside U.S. and China as largest single import source
FY2026 key financial metrics · XBRL
- Revenue
- $104.8B
- −1.7% YoY
- Net income
- $3.7B
- −9.4% YoY
- Operating margin
- 4.9%
- −0.3 pp YoY
- EPS (diluted)
- $8.13
- −8.2% YoY
- ROE
- 22.9%
- −5.0 pp YoY
- Operating cash flow
- $6.6B
- −10.9% YoY
Source: XBRL data from the Target Corporation (TGT) FY2026 10-K on SEC EDGAR. USD.
Target Corporation FY2026 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Single-segment omnichannel retailer; stores fulfill >97% of total Merchandise Sales, serving as both destinations and fulfillment hubs
- Net Sales declined to $104.8B in fiscal 2025, down from $106.6B in 2024 and $107.4B in 2023: three consecutive years of contraction
- Major leadership transition: Brian Cornell stepped down as CEO in February 2026; Michael Fiddelke elevated from COO to CEO; multiple C-suite roles reshuffled simultaneously
- Ulta Beauty shop-in-shop partnership terminated by mutual agreement; commercial operating agreement expires August 2026
- ~30% of Merchandise Sales from owned/exclusive brands; ~50% of merchandise sourced outside U.S., with China as largest import origin amid active tariff mitigation strategies
Management Discussion & Analysis
- Net sales $104.8B, down $1.8B (-1.7% YoY); comparable sales -2.6% on -2.2% traffic and -0.4% avg transaction
- Operating margin 4.9% vs 5.2% prior year; gross margin 27.9% vs 28.2%; adjusted operating margin 4.6% vs 5.2%
- Digital channel bright spot: digitally originated comparable sales +3.1% vs store-originated -4.0%; digital mix 20.6% of merch sales vs 19.6%
- Operating cash flow $6.6B vs $7.4B; capex guidance ~$5B for 2026; dividends $2.1B ($4.52/share); buybacks cut to $0.4B from $1.0B
- Key risks: IEEPA tariff ruling with unquantified recovery potential; new Feb 2026 tariffs; ~50% of merchandise sourced outside U.S. with China as largest import source
Risk Factors
- IEEPA tariff ruling (Feb 2026 Supreme Court) invalidated tariff authority; replacement Section 122 tariffs imposed, with ~50% of merchandise sourced outside U.S. and China as largest single import source
- AI-enabled competitive disruption risk: rivals deploying AI for consumer-facing platforms and internal ops; lowered barriers enabling new entrants to retail market
- Owned/exclusive brands (~30% of merchandise sales, higher margins) face amplified tariff and supply chain exposure due to longer lead times and earlier ownership in supply chain
- Shipt subsidiary faces ongoing legal challenges to independent contractor worker classification that could materially raise digital fulfillment costs
- IRS actively auditing intercompany transfer pricing for fiscal years 2021 and 2022, with potential for significant deviation from recorded tax amounts
Generated from the filing text; verify against the original. How to read a 10-K
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