Target Financials
This page shows Target (TGT) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 19 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Margin recovery repaired profit after FY2023, but cash conversion weakened as this working-capital-heavy retailer ran on tight liquidity.
Gross margin rose from24.6% in FY2023 to27.9% in FY2026, showing the FY2023 squeeze was repaired at the merchandise level. But free cash flow was only$2.8B in FY2026 versus$3.8B in FY2024, so the recovery came without a matching return in cash surplus and points to a still more cash-demanding operating cycle.
Current liabilities stayed above current assets in every reported year, with the current ratio still below 1.0x in FY2026. That means the business leans on supplier and other short-term financing to support inventory. The higher cash balance of
Leverage eased as debt to equity moved from 1.4x in FY2023 to 0.9x in FY2026. Because long-term debt remained about
Financial Health Signals
Based on FY2026 annual data, averaged across the last 3 years for performance metrics (most-recent year weighted highest). How this score is calculated →
Health score ≠ stock price. This rates the quality of Target's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Target has an operating margin of 4.9%, meaning the company retains $5 of operating profit per $100 of revenue. This results in a moderate score of 33/100, indicating healthy but not exceptional operating efficiency. This is down from 5.2% the prior year.
Target's revenue declined 1.7% year-over-year, from $106.6B to $104.8B. This contraction results in a growth score of 31/100.
Target carries a low D/E ratio of 0.89, meaning only $0.89 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 84/100, indicating a strong balance sheet with room for future borrowing.
Target's current ratio of 0.94 is below the typical benchmark, resulting in a score of 14/100. This tight liquidity could limit financial flexibility if cash inflows slow.
Target has a free cash flow margin of 2.7%, earning a moderate score of 33/100. The company generates positive cash flow after capital investments, but with room for improvement.
Target earns a strong 22.9% return on equity (ROE), meaning it generates $23 of profit for every $100 of shareholders' equity. This efficient capital use earns a returns score of 68/100. This is down from 27.4% the prior year.
Target scores 3.03, well above the 2.99 safe threshold. This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.
Target passes 6 of 9 financial strength tests. 3 of 4 profitability signals pass, all 3 leverage/liquidity signals pass, neither operating efficiency signal passes.
For every $1 of reported earnings, Target generates $1.77 in operating cash flow ($6.6B OCF vs $3.7B net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.
Target earns $11.5 in operating income for every $1 of interest expense ($5.1B vs $445.0M). This wide margin provides strong safety for debt servicing, even if earnings decline temporarily.
Key Financial Metrics
Earnings & Revenue
Target generated $104.8B in revenue in fiscal year 2026. This represents a decrease of 1.7% from the prior year.
Target's EBITDA was $8.3B in fiscal year 2026, measuring earnings before interest, taxes, depreciation, and amortization. This represents a decrease of 3.5% from the prior year.
Target reported $3.7B in net income in fiscal year 2026. This represents a decrease of 9.4% from the prior year.
Target earned $8.13 per diluted share (EPS) in fiscal year 2026. This represents a decrease of 8.2% from the prior year.
Cash & Balance Sheet
Target generated $2.8B in free cash flow in fiscal year 2026, representing cash available after capex. This represents a decrease of 36.7% from the prior year.
Target held $5.5B in cash against $14.4B in long-term debt as of fiscal year 2026.
Target paid $4.54 per share in dividends in fiscal year 2026. This represents an increase of 1.8% from the prior year.
Target had 453M shares outstanding in fiscal year 2026. This represents a decrease of 0.6% from the prior year.
Margins & Returns
Target's gross margin was 27.9% in fiscal year 2026, indicating the percentage of revenue retained after direct costs. This is down 0.3 percentage points from the prior year.
Target's operating margin was 4.9% in fiscal year 2026, reflecting core business profitability. This is down 0.3 percentage points from the prior year.
Target's net profit margin was 3.5% in fiscal year 2026, showing the share of revenue converted to profit. This is down 0.3 percentage points from the prior year.
Target's ROE was 22.9% in fiscal year 2026, measuring profit generated per dollar of shareholder equity. This is down 4.5 percentage points from the prior year.
Capital Allocation
Target spent $408.0M on share buybacks in fiscal year 2026, returning capital to shareholders by reducing shares outstanding. This represents a decrease of 59.5% from the prior year.
Target invested $3.7B in capex in fiscal year 2026, funding long-term assets and infrastructure. This represents an increase of 28.9% from the prior year.
TGT Income Statement
| Metric | Q4'26 | Q3'26 | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $25.3B+0.2% | $25.2B+5.7% | $23.8B-24.5% | $31.6B+23.1% | $25.7B+0.8% | $25.5B+3.8% | $24.5B-25.0% | $32.7B |
| Cost of Revenue | $18.1B+1.3% | $17.9B+4.5% | $17.1B-26.0% | $23.1B+25.8% | $18.4B+3.2% | $17.8B+2.0% | $17.5B-28.4% | $24.4B |
| Gross Profit | $7.1B-2.4% | $7.3B+8.8% | $6.7B-20.5% | $8.5B+16.4% | $7.3B-4.7% | $7.6B+8.0% | $7.1B-14.9% | $8.3B |
| R&D Expenses | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A Expenses | $5.5B+3.3% | $5.4B+16.7% | $4.6B-30.0% | $6.6B+20.1% | $5.5B+1.8% | $5.4B+4.3% | $5.1B-11.5% | $5.8B |
| Operating Income | $948.0M-28.0% | $1.3B-10.5% | $1.5B+14.0% | $1.3B+10.5% | $1.2B-28.6% | $1.6B+26.2% | $1.3B-31.7% | $1.9B |
| Interest Expense | $115.0M-0.9% | $116.0M0.0% | $116.0M+45.0% | $80.0M-23.8% | $105.0M-4.5% | $110.0M+3.8% | $106.0M-28.4% | $148.0M |
| Income Tax | $170.0M-39.9% | $283.0M-18.2% | $346.0M+47.9% | $234.0M-1.3% | $237.0M-32.9% | $353.0M+27.4% | $277.0M-27.3% | $381.0M |
| Net Income | $689.0M-26.3% | $935.0M-9.7% | $1.0B-6.1% | $1.1B+29.2% | $854.0M-28.4% | $1.2B+26.5% | $942.0M-31.8% | $1.4B |
| EPS (Diluted) | $1.51-26.3% | $2.05-9.7% | $2.27 | N/A | $1.85-28.0% | $2.57+26.6% | $2.03 | N/A |
TGT Balance Sheet
| Metric | Q4'26 | Q3'26 | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $60.0B+3.7% | $57.9B+3.0% | $56.2B-2.7% | $57.8B-1.3% | $58.5B+4.5% | $56.0B+1.6% | $55.1B-0.4% | $55.4B |
| Current Assets | $20.7B+8.8% | $19.0B+7.2% | $17.8B-8.7% | $19.5B-5.4% | $20.6B+14.7% | $17.9B+4.9% | $17.1B-2.4% | $17.5B |
| Cash & Equivalents | $3.8B-12.0% | $4.3B+50.4% | $2.9B-39.4% | $4.8B+38.7% | $3.4B-1.8% | $3.5B-3.0% | $3.6B-5.3% | $3.8B |
| Inventory | $14.9B+15.6% | $12.9B-1.3% | $13.0B+2.4% | $12.7B-16.0% | $15.2B+20.3% | $12.6B+7.5% | $11.7B-1.3% | $11.9B |
| Accounts Receivable | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Goodwill | N/A | N/A | N/A | $631.0M | N/A | N/A | N/A | $631.0M |
| Total Liabilities | $44.5B+4.9% | $42.4B+2.9% | $41.2B-4.3% | $43.1B-2.1% | $44.0B+6.0% | $41.6B+0.7% | $41.3B-1.5% | $41.9B |
| Current Liabilities | $21.2B+10.5% | $19.2B+1.2% | $19.0B-8.7% | $20.8B-4.6% | $21.8B+9.0% | $20.0B+0.6% | $19.9B+2.9% | $19.3B |
| Long-Term Debt | $15.4B+0.3% | $15.3B+6.9% | $14.3B+3.1% | $13.9B-3.1% | $14.3B+5.1% | $13.7B+1.2% | $13.5B-4.7% | $14.2B |
| Total Equity | $15.5B+0.5% | $15.4B+3.2% | $14.9B+1.9% | $14.7B+1.2% | $14.5B+0.4% | $14.4B+4.3% | $13.8B+3.0% | $13.4B |
| Retained Earnings | $8.8B+0.1% | $8.8B+4.9% | $8.4B+3.3% | $8.1B+1.0% | $8.0B-0.3% | $8.0B+6.8% | $7.5B+6.0% | $7.1B |
TGT Cash Flow Statement
| Metric | Q4'26 | Q3'26 | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $1.1B-45.9% | $2.1B+657.5% | $275.0M-91.6% | $3.3B+345.1% | $739.0M-67.0% | $2.2B+103.3% | $1.1B-66.5% | $3.3B |
| Capital Expenditures | $978.0M-8.9% | $1.1B+35.9% | $790.0M-14.4% | $923.0M+40.9% | $655.0M+2.5% | $639.0M-5.2% | $674.0M-21.1% | $854.0M |
| Free Cash Flow | $149.0M-85.2% | $1.0B+295.9% | -$515.0M-121.8% | $2.4B+2716.7% | $84.0M-94.7% | $1.6B+274.5% | $427.0M-82.5% | $2.4B |
| Investing Cash Flow | -$937.0M+12.1% | -$1.1B-35.5% | -$787.0M+14.3% | -$918.0M-44.1% | -$637.0M-0.5% | -$634.0M+5.5% | -$671.0M+21.1% | -$850.0M |
| Financing Cash Flow | -$709.0M-262.2% | $437.0M+132.1% | -$1.4B-30.8% | -$1.0B-527.7% | -$166.0M+90.3% | -$1.7B-171.2% | -$631.0M-16.0% | -$544.0M |
| Dividends Paid | $518.0M+1.8% | $509.0M-0.2% | $510.0M-0.6% | $513.0M-0.6% | $516.0M+1.4% | $509.0M+0.2% | $508.0M0.0% | $508.0M |
| Share Buybacks | $150.0M+1775.0% | $8.0M-96.8% | $250.0M-50.1% | $501.0M+42.7% | $351.0M+126.5% | $155.0M | $0 | $0 |
TGT Financial Ratios
| Metric | Q4'26 | Q3'26 | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 28.2%-0.8pp | 29.0%+0.8pp | 28.2%+1.4pp | 26.8%-1.6pp | 28.3%-1.6pp | 30.0%+1.2pp | 28.8%+3.4pp | 25.4% |
| Operating Margin | 3.8%-1.5pp | 5.2%-0.9pp | 6.2%+2.1pp | 4.1%-0.5pp | 4.5%-1.9pp | 6.4%+1.1pp | 5.3%-0.5pp | 5.8% |
| Net Margin | 2.7%-1.0pp | 3.7%-0.6pp | 4.3%+0.9pp | 3.5%+0.2pp | 3.3%-1.3pp | 4.7%+0.8pp | 3.8%-0.4pp | 4.2% |
| Return on Equity | 4.4%-1.6pp | 6.1%-0.9pp | 6.9%-0.6pp | 7.5%+1.6pp | 5.9%-2.4pp | 8.3%+1.5pp | 6.8%-3.5pp | 10.3% |
| Return on Assets | 1.1%-0.5pp | 1.6%-0.2pp | 1.8%-0.1pp | 1.9%+0.4pp | 1.5%-0.7pp | 2.1%+0.4pp | 1.7%-0.8pp | 2.5% |
| Current Ratio | 0.97-0.0 | 0.99+0.1 | 0.940.0 | 0.940.0 | 0.94+0.0 | 0.90+0.0 | 0.86-0.0 | 0.91 |
| Debt-to-Equity | 0.990.0 | 0.99+0.0 | 0.96+0.0 | 0.95-0.0 | 0.99+0.0 | 0.95-0.0 | 0.97-0.1 | 1.05 |
| FCF Margin | 0.6%-3.4pp | 4.0%+6.2pp | -2.2%-9.7pp | 7.5%+7.2pp | 0.3%-5.9pp | 6.3%+4.5pp | 1.7%-5.7pp | 7.4% |
Note: The current ratio is below 1.0 (0.94), indicating current liabilities exceed current assets, which may suggest potential short-term liquidity concerns.
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Frequently Asked Questions
What is Target's annual revenue?
Target (TGT) reported $104.8B in total revenue for fiscal year 2026. This represents a -1.7% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Target's revenue growing?
Target (TGT) revenue declined by 1.7% year-over-year, from $106.6B to $104.8B in fiscal year 2026.
Is Target profitable?
Yes, Target (TGT) reported a net income of $3.7B in fiscal year 2026, with a net profit margin of 3.5%.
What is Target's EBITDA?
Target (TGT) had EBITDA of $8.3B in fiscal year 2026, measuring earnings before interest, taxes, depreciation, and amortization.
How much debt does Target have?
As of fiscal year 2026, Target (TGT) had $5.5B in cash and equivalents against $14.4B in long-term debt.
What is Target's gross margin?
Target (TGT) had a gross margin of 27.9% in fiscal year 2026, indicating the percentage of revenue retained after direct costs of goods sold.
What is Target's operating margin?
Target (TGT) had an operating margin of 4.9% in fiscal year 2026, reflecting the profitability of core business operations before interest and taxes.
What is Target's net profit margin?
Target (TGT) had a net profit margin of 3.5% in fiscal year 2026, representing the share of revenue converted into profit after all expenses.
Does Target pay dividends?
Yes, Target (TGT) paid $4.54 per share in dividends during fiscal year 2026.
What is Target's return on equity (ROE)?
Target (TGT) has a return on equity of 22.9% for fiscal year 2026, measuring how efficiently the company generates profit from shareholder equity.
What is Target's free cash flow?
Target (TGT) generated $2.8B in free cash flow during fiscal year 2026. This represents a -36.7% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Target's operating cash flow?
Target (TGT) generated $6.6B in operating cash flow during fiscal year 2026, representing cash generated from core business activities.
What are Target's total assets?
Target (TGT) had $59.5B in total assets as of fiscal year 2026, including both current and long-term assets.
What are Target's capital expenditures?
Target (TGT) invested $3.7B in capital expenditures during fiscal year 2026, funding long-term assets and infrastructure.
What is Target's current ratio?
Target (TGT) had a current ratio of 0.94 as of fiscal year 2026, which is below 1.0, which may suggest potential liquidity concerns.
What is Target's debt-to-equity ratio?
Target (TGT) had a debt-to-equity ratio of 0.89 as of fiscal year 2026, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Target's return on assets (ROA)?
Target (TGT) had a return on assets of 6.2% for fiscal year 2026, measuring how efficiently the company uses its assets to generate profit.
What is Target's Altman Z-Score?
Target (TGT) has an Altman Z-Score of 3.03, placing it in the Safe Zone (low bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Target's Piotroski F-Score?
Target (TGT) has a Piotroski F-Score of 6 out of 9, indicating neutral financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Target's earnings high quality?
Target (TGT) has an earnings quality ratio of 1.77x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
Can Target cover its interest payments?
Target (TGT) has an interest coverage ratio of 11.5x, meaning it can comfortably cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.
How financially healthy is Target?
Target (TGT) scores 44 out of 100 on our Financial Profile, indicating moderate overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.