US retail giant receives $1bn boost from tariff refunds
Target doubled its profits in the second quarter of 2026, largely driven by a $1 billion refund on Trump-era tariffs. The retailer beat earnings expectations and raised its fiscal-year forecast as a broader turnaround strategy gains traction. Growth was supported by jumping grocery sales and strong performance in beauty and hardlines merchandise. While the tariff refund provided the primary financial boost, the company is also investing $1 billion into a grocery revamp focused on trendy snacks and drinks to attract more consumers.
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- ✓ Target's profits doubled following a $1 billion tariff refund.
- ✓ The company beat earnings expectations for the second quarter of 2026.
- ✓ Target raised its fiscal-year forecast.
- ✓ Grocery sales increased as part of the company's turnaround.
What changed
Target reported Q2 2026 earnings showing doubled profits and an increased annual forecast.
Live updates
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Target profits double following $1 billion tariff refund
Target doubled its profits in the second quarter of 2026, largely driven by a $1 billion refund on Trump-era tariffs. The retailer beat earnings expectations and raised its fiscal-year forecast as a broader turnaround strategy gains traction. Growth was supported by jumping grocery sales and strong performance in beauty and hardlines merchandise. While the tariff refund provided the primary financial boost, the company is also investing $1 billion into a grocery revamp focused on trendy snacks and drinks to attract more consumers.
Why it matters
The company is executing a turnaround led by executive Fiddelke to regain consumer momentum. This effort coincides with a larger trend where major US retailers are receiving billions in tariff refunds. Target's strategy involves balancing value with a specialized grocery overhaul to compete with rivals.
What is confirmed
- Target's profits doubled following a $1 billion tariff refund.
- The company beat earnings expectations for the second quarter of 2026.
- Target raised its fiscal-year forecast.
- Grocery sales increased as part of the company's turnaround.
Still unconfirmed
- Target is investing $1 billion into a grocery revamp focusing on trendy snacks and drinks.
- The company saw major sales growth specifically in beauty and hardlines merchandise.
What to watch next
- Further updates on the progress of the $1 billion grocery revamp
- Detailed fiscal-year performance reports following the raised forecast
confidence 95%Sources used for this update (16)
- CNBC — Target is set to report earnings before the bell. Here's what to expect
- Axios — Target earnings: Turnaround materializing as grocery sales jump
- Star Tribune — Target doubles profit, boosted by $1 billion tariff refund
- Yahoo Finance — Target delivers earnings beat, CEO 'encouraged' by turnaround traction
- corporate.target.com — Target Q2 2026 Earnings Highlights
- WSJ — Target Raises Fiscal-Year Forecast Again as Turnaround Gains Traction With Consumers
- BBC — Target receives $1bn boost from Trump tariff refunds
- inc.com — Target’s Profit Nearly Doubled. The Biggest Contributor Wasn’t More Shopping
- Bloomberg.com — Target Bets Shoppers Want to Buy Trendy Snacks and Drinks in Grocery Revamp
- The Business Journals — Target bets $1B on grocery revamp as rivals lean into value
- Retail Dive — Target scores major sales growth in beauty, hardlines merchandise
- Reuters — Target lifts annual forecasts again as Fiddelke's turnaround takes root
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