Target Q2 Sales Fall 0.9% CEO Transition Set February

Target Corp. reported second-quarter earnings that beat analyst estimates despite a 0.9% decline in revenue to $25.2 billion and a 20.2% drop in net income to $935 million. The company posted adjusted earnings per share of $2.05, slightly above the consensus of $2.04, supported by a 4.3% increase in digital sales, particularly driven by same-day delivery services. Outgoing CEO Brian Cornell highlighted signs of recovery and disciplined cost management amid a challenging retail environment characterized by pressured consumers, tariff impacts, and market-share losses to competitors like Walmart. Target also announced the end of its partnership with Ulta Beauty in August 2026, raising questions about its future strategy in the high-margin beauty category, which saw flat sales at $3.4 billion. The company maintained a cautious full-year outlook with expected fiscal 2026 EPS between $7.00 and $9.00 and a forecasted low-single-digit sales decline, as it prepares for a leadership transition with COO Michael Fiddelke set to become CEO in February 2026. Despite ongoing challenges including 11 consecutive quarters of flat or falling sales, Target is focusing on recovery efforts through improved traffic, cost discipline, and strategic adjustments.