How does Target (TGT) make money?

Target (TGT) generates revenue primarily from Food and Beverage, which accounted for 24.9% of total revenue in TTM through Q2 2026. The company reported $106.38B in revenue and converted 3.2% of it into net profit, equivalent to roughly $3.45B in net income — what's left after the cost of revenue, operating expenses, interest, and income taxes.

What is the gross profit margin of Target (TGT)?

Target (TGT) reported a gross profit margin of 28.1% in TTM through Q2 2026, equivalent to $29.93B in gross profit on $106.38B in revenue. Gross margin measures how much of each dollar of revenue remains after the direct cost of producing or delivering the product — a higher figure typically signals pricing power, scale, or a less capital-intensive business model.

What is the operating profit margin of Target (TGT)?

Target (TGT) reported an operating profit margin of 4.5% in TTM through Q2 2026, equivalent to $4.78B in operating income. Operating margin captures profitability after research & development, sales & marketing, and general & administrative expenses — but before interest, taxes, and one-off items — and is the cleanest single read on the underlying business's efficiency.

What is the net profit margin of Target (TGT)?

Target (TGT) reported a net profit margin of 3.2% in TTM through Q2 2026, equivalent to $3.45B in net income. Net margin is the bottom-line share of revenue that survives every expense — operating costs, interest, and income taxes — and is the figure that flows directly into earnings per share.

Is Target (TGT) profitable?

Yes. Target (TGT) reported $3.45B in net income for TTM through Q2 2026, with a net profit margin of 3.2%. The company earned more from its operations than it paid out in costs, interest, and income taxes, leaving positive earnings on the bottom line.

How much does Target (TGT) spend on capital expenditures?

Target (TGT) spent $2.84B on capital expenditures (CapEx) during TTM through Q2 2026, roughly 2.7% of total revenue. CapEx represents long-lived investment in property, equipment, data centres, and other physical infrastructure, and is subtracted from operating cash flow to arrive at free cash flow.

How much free cash flow does Target (TGT) generate?

Target (TGT) generated $4.16B in free cash flow during TTM through Q2 2026, a free-cash-flow margin of 3.9%. Free cash flow is the cash left after capital expenditures and represents the discretionary pool the company can use to pay dividends, repurchase shares, repay debt, or fund acquisitions without raising external capital.

What is the effective tax rate of Target (TGT)?

Target (TGT) had an effective tax rate of 21.9% in TTM through Q2 2026. The effective rate is the actual share of pre-tax income paid as income taxes and can differ materially from the statutory rate due to foreign earnings mix, tax credits (such as R&D), share-based compensation deductions, and one-off discrete items.

What are the main business segments of Target (TGT)?

Target (TGT) reports revenue across 9 reportable product segments, led by Food and Beverage at 24.9% of total revenue in TTM through Q2 2026. See the revenue-by-segment table on this page for the full breakdown and how each segment feeds into the income-statement waterfall above.

How Target Makes Money: 2026 Visual Revenue Map

Target (TGT) Income Statement Flow — TTM through Q2 2026

Calculated from the four most recent reported quarters, ending May 2, 2026 (reported May 29, 2026).

Target discloses geographic revenue only in annual filings. to view the full breakdown.

Target (TGT) Revenue by Product Segment — TTM through Q2 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported segments changed mid-year.

Revenue contribution by product segment for Target (TGT) in TTM through Q2 2026.
Segment	Revenue (USD)	% of total
Food and Beverage	$26.44B	24.9%
Beauty and Household Essentials	$19.67B	18.5%
Hardlines	$17.53B	16.5%
Home Furnishings and Decor	$16.86B	15.9%
Beauty	$14.58B	13.7%
Apparel and Accessories	$8.56B	8%
Other Product	$1.10B	1%
Advertising Revenue	$1.08B	1%
Other segments	$551.45M	0.5%
Total	$106.38B	100%

Food and Beverage$26.44B
Beauty and Household Essentials$19.67B
Hardlines$17.53B
Home Furnishings and Decor$16.86B
Beauty$14.58B
Apparel and Accessories$8.56B
Other Product$1.10B
Advertising Revenue$1.08B
Other segments$551.45M
Total$106.38B

Revenue Breakdown — TTM through Q2 2026

In TTM through Q2 2026, Target (TGT) reports revenue across 9 operating segments; the largest segment was Food and Beverage at 24.9%, followed by Beauty and Household Essentials (18.5%) and Hardlines (16.5%).

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