The company received a $994 million tariff refund that contributed to its quarterly profit. Walmart booked nearly $2.9 billion in tariff refunds in the same quarter. The US Supreme Court ruled earlier in 2026 that President Trump overstepped his authority in imposing tariffs.

Clothes and home goods categories showed minimal growth in the reported quarter. Target cut prices on more than 10,000 items over the past year. The retailer allocated an additional $2 billion in March 2026 to fix its store and product mix, adding to a previously promised $4 billion.

Michael Fiddelke is the CEO of Target. Brian C. Cornell was the chairman and chief executive officer (CEO) of Target from 2014 to 2026.

Timeline

Target allocated an additional $2 billion in March 2026 to fix its store and product mix, adding to a previously promised $4 billion. On August 20, 2026, Walmart booked nearly $2.9 billion in tariff refunds in the same quarter as Target. Target reported its second consecutive quarter of comparable sales gains on August 20, 2026.

Target raised its yearly sales forecast to about 5% from 4% on August 20, 2026. Target's comparable sales grew 3.8% on August 20, 2026. Target's online sales jumped 8.7% on August 20, 2026.

Target shares increased over 57% in 2026 as of August 20. Target's clothes and home goods categories showed minimal growth in the reported quarter on August 20, 2026.

Why It Matters

Target stated that its strategy is resonating with guests, strengthening its leadership position in style, design, and value. The company noted it is committed to delivering outstanding value through price reductions and investment in newness and convenience. The second quarter results build on the encouraging momentum seen in the first quarter.