Target Corporation (TGT) AI Stock Analysis

Target Corporation functions as a general merchandise retailer across the United States. The company offers a wide-ranging assortment of products, including perishables, dry grocery, dairy, and frozen food items, alongside apparel, accessories, home decor, electronics, toys, seasonal goods, beauty, and household necessities. Target enhances in-store shopping with amenities such as Target Cafe, Target Optical, and Starbucks, along with other food service options. Established in 1902 and based in Minneapolis, Minnesota, the company integrates its physical store network with its digital platform, Target.com, through an omnichannel strategy.

Target's annual revenue reached $106.00B in FY2022 before rising 2.9% to $109.12B in FY2023. Revenue subsequently fell 1.6% to $107.41B in FY2024, 0.8% to $106.57B in FY2025, and 1.7% to $104.78B in FY2026, reflecting a 5-year revenue CAGR of 2.3% from FY2021 to FY2026. Annual net income decreased from $6.95B in FY2022 to $3.71B in FY2026, with net margin moving from 6.6% down to 3.5%. However, in the latest quarter ending July 31, 2026, quarterly revenue grew 5.3% year-over-year and quarterly earnings grew 100.5% year-over-year, bringing trailing twelve-month revenue to $107.70B with an operating margin of 6.0% and diluted EPS of $9.63.

As of July 31, 2026, Target held $5.41B in cash and short-term investments against $18.70B in total debt, resulting in net debt of $13.29B. Shareholders' equity stood at $17.84B, supporting a current ratio of 0.99 and a debt-to-equity ratio of 1.05. In FY2026, the company generated $6.56B in operating cash flow and $2.83B in free cash flow. Capital expenditures were $3.73B, while capital returned to shareholders included $408.0M in share buybacks and $2.05B in dividends paid.

Target trades at a trailing P/E of 16.0x and a forward P/E of 15.6x, compared to the median of its S&P 500 Consumer Defensive peers of 23.5x trailing and 15.2x forward. Its enterprise value stands at $85.52B, with an EV-to-EBITDA multiple of 9.2x, below the peer median of 14.8x. The price-to-sales ratio is 0.7x, compared to the peer median of 1.8x. Over the past year, Target shares gained 78.2%, outperforming the 16.8% return of the S&P 500 (SPY). Over a five-year period, the stock fell 26.6%, while SPY gained 83.0%.

Target offers an annualized forward dividend of $4.64 per share, translating to a dividend yield of 3.01% with a payout ratio of 54.8%. The company pays quarterly dividends and has maintained 44 consecutive years of dividend payments. Target achieved an annualized five-year dividend growth rate of 11.0%, with its last ex-dividend date recorded on November 10, 2026.

Wall Street coverage consists of 11 Strong Buy, 2 Buy, 21 Hold, and 4 Sell ratings. The mean price target of $163.35 indicates potential upside of 5.9% over the October 16, 2026 closing price of $154.26. For the current fiscal year ending January 31, 2027, consensus estimates project EPS of $10.24, an increase of 35.3%, on revenue of $110.19B. Target has beaten EPS estimates in each of the last 4 quarters, and its next earnings report is scheduled for November 18, 2026.

This page is an AI-written research summary of Target Corporation (TGT). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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