tgt-20250802



UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended August 2, 2025

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____ to ____

Commission File Number 1-6049

TARGET CORPORATION

(Exact name of registrant as specified in its charter)

Minnesota

(State or other jurisdiction of incorporation or organization)

1000 Nicollet Mall, Minneapolis, Minnesota

(Address of principal executive offices)

41-0215170

(I.R.S. Employer Identification No.)

55403

(Zip Code)

612-304-6073

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common stock, par value $0.0833 per share

TGT

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Total shares of common stock, par value $0.0833, outstanding at August 22, 2025, were 454,399,148.


						Table of Contents
						Index to Notes

TARGET CORPORATION

TABLE OF CONTENTS


PART I	FINANCIAL INFORMATION
Item 1.	Financial Statements (unaudited)
	Consolidated Statements of Operations	1
	Consolidated Statements of Comprehensive Income	2
	Consolidated Statements of Financial Position	3
	Consolidated Statements of Cash Flows	4
	Consolidated Statements of Shareholders’ Investment	5
	Notes to Consolidated Financial Statements	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	14
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	25
Item 4.	Controls and Procedures	25

PART II	OTHER INFORMATION
Item 1.	Legal Proceedings	26
Item 1A.	Risk Factors	26
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	26
Item 3.	Defaults Upon Senior Securities	26
Item 4.	Mine Safety Disclosures	26
Item 5.	Other Information	26
Item 6.	Exhibits	27

Signatures		28


			FINANCIAL STATEMENTS			Table of Contents
						Index to Notes

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements


Consolidated Statements of Operations
	Three Months Ended				Six Months Ended
(millions, except per share data) (unaudited)	August 2, 2025		August 3, 2024		August 2, 2025		August 3, 2024
Net sales	$	25,211	$	25,452	$	49,057	$	49,983
Cost of sales	17,903		17,826		35,031		35,297
Selling, general, and administrative expenses	5,359		5,365		9,950		10,511
Depreciation and amortization (exclusive of depreciation included in cost of sales)	632		626		1,287		1,244
Operating income	1,317		1,635		2,789		2,931
Net interest expense	116		110		232		216
Net other income	(17)		(20)		(43)		(49)
Earnings before income taxes	1,218		1,545		2,600		2,764
Provision for income taxes	283		353		629		630
Net earnings	$	935	$	1,192	$	1,971	$	2,134
Basic earnings per share	$	2.06	$	2.58	$	4.33	$	4.62
Diluted earnings per share	$	2.05	$	2.57	$	4.32	$	4.60
Weighted average common shares outstanding
Basic	454.6		462.5		454.8		462.4
Diluted	455.6		463.5		456.1		463.7
Antidilutive shares	5.0		2.3		2.3		1.8

See accompanying Notes to Consolidated Financial Statements.


TARGET CORPORATION						Q2 2025 Form 10-Q			1


			FINANCIAL STATEMENTS			Table of Contents
						Index to Notes


Consolidated Statements of Comprehensive Income
	Three Months Ended				Six Months Ended
(millions) (unaudited)	August 2, 2025		August 3, 2024		August 2, 2025		August 3, 2024
Net earnings	$	935	$	1,192	$	1,971	$	2,134
Other comprehensive (loss) / income, net of tax

Cash flow hedges and currency translation adjustment	(6)		(5)		(10)		(10)
Other comprehensive loss	(6)		(5)		(10)		(10)
Comprehensive income	$	929	$	1,187	$	1,961	$	2,124

See accompanying Notes to Consolidated Financial Statements.


TARGET CORPORATION						Q2 2025 Form 10-Q			2


			FINANCIAL STATEMENTS			Table of Contents
						Index to Notes


Consolidated Statements of Financial Position
(millions, except footnotes) (unaudited)	August 2, 2025		February 1, 2025		August 3, 2024
Assets
Cash and cash equivalents	$	4,341	$	4,762	$	3,497
Inventory	12,881		12,740		12,604
Other current assets	1,812		1,952		1,817
Total current assets	19,034		19,454		17,918







Property and equipment, net	33,568		33,022		33,075
Operating lease assets	3,694		3,763		3,545
Other noncurrent assets	1,555		1,530		1,457
Total assets	$	57,851	$	57,769	$	55,995
Liabilities and shareholders’ investment
Accounts payable	$	12,019	$	13,053	$	12,595
Accrued and other current liabilities	6,068		6,110		5,749
Current portion of long-term debt and other borrowings	1,136		1,636		1,640
Total current liabilities	19,223		20,799		19,984
Long-term debt and other borrowings	15,320		14,304		13,654
Noncurrent operating lease liabilities	3,514		3,582		3,444
Deferred income taxes	2,413		2,303		2,495
Other noncurrent liabilities	1,961		2,115		1,989
Total noncurrent liabilities	23,208		22,304		21,582
Shareholders’ investment
Common stock	38		38		38
Additional paid-in capital	7,084		6,996		6,831
Retained earnings	8,766		8,090		8,030
Accumulated other comprehensive loss	(468)		(458)		(470)
Total shareholders’ investment	15,420		14,666		14,429
Total liabilities and shareholders’ investment	$	57,851	$	57,769	$	55,995

Common Stock Authorized 6,000,000,000 shares, $0.0833 par value; 454,396,092, 455,566,995, and 461,600,215 shares issued and outstanding as of August 2, 2025, February 1, 2025, and August 3, 2024, respectively.

Preferred Stock Authorized 5,000,000 shares, $0.01 par value; no shares were issued or outstanding during any period presented.

See accompanying Notes to Consolidated Financial Statements.


TARGET CORPORATION						Q2 2025 Form 10-Q			3


			FINANCIAL STATEMENTS			Table of Contents
						Index to Notes


Consolidated Statements of Cash Flows
	Six Months Ended
(millions) (unaudited)	August 2, 2025		August 3, 2024
Operating activities
Net earnings	$	1,971	$	2,134
Adjustments to reconcile net earnings to cash provided by operating activities:
Depreciation and amortization	1,558		1,461
Share-based compensation expense	133		149
Deferred income taxes	112		16

Noncash (gains) / losses and other, net	1		22
Changes in operating accounts:
Inventory	(141)		(718)
Other assets	151		(53)
Accounts payable	(1,125)		522
Accrued and other liabilities	(302)		(194)
Cash provided by operating activities	2,358		3,339
Investing activities
Expenditures for property and equipment	(1,864)		(1,313)


Other	11		8
Cash required for investing activities	(1,853)		(1,305)
Financing activities

Additions to long-term debt	1,984		—
Reductions of long-term debt	(1,571)		(1,076)
Dividends paid	(1,019)		(1,017)
Repurchase of stock	(258)		(155)

Shares withheld for taxes on share-based compensation	(62)		(94)

Cash required for financing activities	(926)		(2,342)
Net decrease in cash and cash equivalents	(421)		(308)
Cash and cash equivalents at beginning of period	4,762		3,805
Cash and cash equivalents at end of period	$	4,341	$	3,497
Supplemental information
Leased assets obtained in exchange for new finance lease liabilities	$	41	$	304
Leased assets obtained in exchange for new operating lease liabilities	119		362

See accompanying Notes to Consolidated Financial Statements.


TARGET CORPORATION						Q2 2025 Form 10-Q			4


			FINANCIAL STATEMENTS			Table of Contents
						Index to Notes


Consolidated Statements of Shareholders’ Investment
	Common	Stock		Additional				Accumulated Other
	Stock	Par		Paid-in		Retained		Comprehensive
(millions) (unaudited)	Shares	Value		Capital		Earnings		Loss		Total
February 3, 2024	461.7	$	38	$	6,761	$	7,093	$	(460)	$	13,432
Net earnings	—	—		—		942		—		942
Other comprehensive loss	—	—		—		—		(5)		(5)
Dividends declared, $1.10 per share	—	—		—		(516)		—		(516)


Share-based compensation	0.9	1		(14)		—		—		(13)
May 4, 2024	462.6	$	39	$	6,747	$	7,519	$	(465)	$	13,840
Net earnings	—	—		—		1,192		—		1,192
Other comprehensive loss	—	—		—		—		(5)		(5)
Dividends declared, $1.12 per share	—	—		—		(527)		—		(527)
Repurchase of stock	(1.1)	(1)		—		(154)		—		(155)
Share-based compensation	0.1	—		84		—		—		84
August 3, 2024	461.6	$	38	$	6,831	$	8,030	$	(470)	$	14,429
Net earnings	—	—		—		854		—		854
Other comprehensive loss	—	—		—		—		(4)		(4)
Dividends declared, $1.12 per share	—	—		—

SEC Form 10-Q filed by Target Corporation