Third quarter net sales were $25.3 billion, 1.5 percent lower than 2024.
Digital comparable sales grew 2.4 percent, led by more than 35% growth in same-day delivery powered by Target Circle 360.
Food & Beverage and Hardlines ("Fun 101") delivered comparable sales growth in the quarter, offset by continued softness across the broader discretionary portfolio.
Non-merchandise sales grew nearly 18 percent with Roundel, membership and marketplace revenues all growing double digits.
Third quarter GAAP EPS was $1.51 compared with $1.85 last year. Adjusted EPS1, which excludes non-recurring severance and asset-related charges, was $1.78.
To deliver newness, convenience and value this holiday season, Target will offer2:
Over 20,000 new items, twice as many as the prior year, with more than half exclusive to Target.
Thanksgiving meals for 4 under $20, with turkey at just 79 cents per pound.
Lower prices on thousands of food, beverage and essential items to help consumers save on the products they rely on most.
Thousands of trend-right gifts starting at $5, plus thousands of toys under $20.
A suite of easy-to-use fulfillment options, including an expanded reach of next-day shipping available to more than half of the U.S. population.
For additional media materials, please visit:https://corporate.target.com/news-features/article/2025/11/q3-2025-earnings
The Company reported third quarter GAAP earnings per share (EPS) of $1.51 and Adjusted earnings per share1 of $1.78 compared with GAAP and Adjusted EPS of $1.85 in 2024. The attached tables provide a reconciliation of non-GAAP to GAAP measures. All earnings per share figures refer to diluted EPS.
"Thanks to the incredible work and dedication of the Target team, our third quarter performance was in line with our expectations, despite multiple challenges continuing to face our business," said Michael Fiddelke, incoming Chief Executive Officer of Target. "As we head into the all-important holiday season, our team is well-prepared and ready to serve our guests with the great products, value, and inspiration they expect from Target. At the same time, we continue to focus on the important work to deliver on our three key priorities: solidifying our merchandising authority, elevating the shopping experience, and further harnessing the power of technology to move at greater pace and consistency, all in support of a return to sustainable growth."
Guidance
For the fourth quarter of 2025, the Company is maintaining its expectation of a low-single digit decline in sales.
Full-year GAAP EPS is now expected to be approximately $7.70 to $8.70. Full-year Adjusted EPS, which excludes the gains from the litigation settlements in the first quarter and severance and asset-related charges in the third quarter, is now expected to be approximately $7.00 to $8.00.
Operating Results
Net Sales of $25.3 billion in the third quarter were 1.5 percent lower than last year, reflecting a merchandise sales decrease of 1.9 percent, partially offset by a 17.7 percent increase in non-merchandise sales. Comparable sales decreased 2.7 percent in the third quarter, reflecting a comparable store sales decline of 3.8 percent, partially offset by comparable digital sales growth of 2.4 percent. Third quarter operating income, which includes the impact of non-recurring items, was $0.9 billion, 18.9 percent lower than last year. Excluding those non-recurring items, operating income was $1.1 billion.
Third quarter operating income margin rate, which includes the impact of non-recurring items, was 3.8 percent in 2025, compared with 4.6 percent in 2024. Excluding those non-recurring items, operating margin rate was 4.4 percent in 2025. Third quarter gross margin rate was 28.2 percent, compared with 28.3 percent in 2024, reflecting merchandising pressure from increased markdowns, partially offset by growth in advertising and other revenues, lower inventory shrink and efficiency gains in supply chain and digital fulfillment. Third quarter SG&A expense rate, which includes non-recurring items, was 21.9 percent, compared with 21.3 percent in 2024. Excluding those non-recurring items, SG&A expense rate was 21.3 percent in Q3 2025, in line with last year.
Interest Expense and Taxes
The Company's third quarter 2025 net interest expense was $115 million, compared with $105 million last year, reflecting higher average debt levels in the current year.
Third quarter 2025 effective income tax rate was 19.8 percent, compared with the prior year rate of 21.7 percent, reflecting the benefit of additional tax credits in the current year.
Capital Deployment and Return on Invested Capital
The Company paid dividends of $518 million in the third quarter, compared with $516 million last year, reflecting a 1.8 percent increase in the dividend per share, offset by the impact of a lower average share count.
The Company repurchased $152 million of its shares in the third quarter, retiring 1.7 million shares of common stock at an average price of $91.59. As of the end of the quarter, the Company had approximately $8.3 billion of remaining capacity under the repurchase program approved by Target's Board of Directors in August 2021.
For the trailing twelve months through third quarter 2025, after-tax return on invested capital (ROIC) was 13.4 percent, compared with 15.9 percent for the trailing twelve months through third quarter 2024. The tables in this release provide additional information about the Company's ROIC calculation.
Webcast Details
Target will webcast its third quarter earnings conference call at 7:00 a.m. CT today. Investors and the media are invited to listen to the meeting at Corporate.Target.com/Investors (click on "Q3 2025 Target Corporation Earnings Conference Call" under "Events & Presentations"). A replay of the webcast will be provided when available. The replay number is 1-800-876-4955.
Miscellaneous
Statements in this release regarding the Company's future financial performance, including its fiscal 2025 full-year guidance, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to risks and uncertainties which could cause the Company's results to differ materially. The most important risks and uncertainties are described in Item 1A of the Company's Form 10-K for the fiscal year ended February 1, 2025. Forward-looking statements speak only as of the date they are made, and the Company does not undertake any obligation to update any forward-looking statement.
About Target
Minneapolis-based Target Corporation (NYSE:TGT) serves guests at nearly 2,000 stores and at Target.com, with the purpose of helping all families discover the joy of everyday life. Since 1946, Target has given 5% of its profit to communities, which today equals millions of dollars a week. Additional company information can be found by visiting the corporate website (corporate.target.com) and press center.
1Adjusted diluted earnings per share (Adjusted EPS), a non-GAAP financial measure, excludes the impact of certain discretely managed items. See the tables of this release for additional information. 2Pricing, promotions and availability may vary by location and at Target.com. Prices are pre-tax and some are not valid in Alaska or Hawaii.
TARGET CORPORATION
Consolidated Statements of Operations
Three Months Ended
Nine Months Ended
(millions, except per share data) (unaudited)
November 1,2025
November 2, 2024
Change
November 1, 2025
November 2, 2024
Change
Net sales
$ 25,270
$ 25,668
(1.5) %
$ 74,327
$ 75,651
(1.7) %
Cost of sales
18,137
18,402
(1.4)
53,168
53,700
(1.0)
Selling, general and administrative expenses
5,536
5,459
1.4
15,486
15,969
(3.0)
Depreciation and amortization (exclusive of depreciation included in cost of sales)
649
639
1.7
1,936
1,883
2.8
Operating income
948
1,168
(18.9)
3,737
4,099
(8.8)
Net interest expense
115
105
8.5
346
321
7.8
Net other income
(26)
(28)
(9.7)
(68)
(77)
(11.2)
Earnings before income taxes
859
1,091
(21.3)
3,459
3,855
(10.3)
Provision for income taxes
170
237
(28.4)
799
867
(7.9)
Net earnings
$ 689
$ 854
(19.3) %
$ 2,660
$ 2,988
(11.0) %
Basic earnings per share
$ 1.52
$ 1.86
(18.2) %
$ 5.85
$ 6.47
(9.6) %
Diluted earnings per share
$ 1.51
$ 1.85
(18.2) %
$ 5.84
$ 6.45
(9.6) %
Weighted average common shares outstanding
Basic
453.7
460.1
(1.4) %
454.4
461.6
(1.6) %
Diluted
455.1
461.5
(1.4) %
455.7
462.9
(1.6) %
Antidilutive shares
2.3
0.5
2.3
0.5
Dividends declared per share
$ 1.14
$ 1.12
1.8 %
$ 3.40
$ 3.34
1.8 %
TARGET CORPORATION
Consolidated Statements of Financial Position
(millions, except footnotes) (unaudited)
November 1, 2025
February 1, 2025
November 2, 2024
Assets
Cash and cash equivalents
$ 3,822
$ 4,762
$ 3,433
Inventory
14,896
12,740
15,165
Other current assets
1,984
1,952
1,956
Total current assets
20,702
19,454
20,554
Property and equipment, net
33,710
33,022
32,931
Operating lease assets
3,739
3,763
3,513
Other noncurrent assets
1,840
1,530
1,533
Total assets
$ 59,991
$ 57,769
$ 58,531
Liabilities and shareholders' investment
Accounts payable
$ 13,792
$ 13,053
$ 14,419
Accrued and other current liabilities
6,317
6,110
5,738
Current portion of long-term debt and other borrowings
1,133
1,636
1,635
Total current liabilities
21,242
20,799
21,792
Long-term debt and other borrowings
15,366
14,304
14,346
Noncurrent operating lease liabilities
3,542
3,582
3,418
Deferred income taxes
2,279
2,303
2,419
Other noncurrent liabilities
2,061
2,115
