v3.26.1
Net Sales
 6 Months Ended
Aug. 01, 2026
Revenue from Contract with Customer [Abstract]  
Net Sales Net Sales
Merchandise sales represent the vast majority of our revenues. We also earn revenues from a variety of other sources, most notably advertising revenue and credit card profit-sharing income.

Net SalesThree Months EndedSix Months Ended
(millions)August 1, 2026August 2, 2025August 1, 2026August 2, 2025
Apparel & accessories (a)
$4,090 $4,086 $7,937 $7,797 
Beauty (b)
3,639 3,396 7,037 6,498 
Food & beverage (c)
5,991 5,588 12,255 11,490 
Hardlines (Fun 101) (d)
3,894 3,522 7,415 6,597 
Home furnishings & décor (e)
3,668 3,662 6,906 6,880 
Household essentials (f)
4,617 4,422 9,187 8,779 
Other merchandise sales48 43 104 83 
Merchandise sales25,947 24,719 50,841 48,124 
Advertising revenue279 217 525 379 
Credit card profit sharing139 134 269 275 
Other174 141 347 279 
Net sales$26,539 $25,211 $51,982 $49,057 
(a)Includes apparel for women, men, young adults, kids, toddlers, and babies, as well as jewelry, accessories, and shoes.
(b)Includes skin and bath care, cosmetics, hair care, oral care, deodorant, and shaving products.
(c)Includes dry and perishable grocery, including snacks, candy, beverages, deli, bakery, meat, produce, food service (primarily Starbucks), and floral in our stores.
(d)Includes electronics, including video games and consoles, toys, trading cards, sporting goods and fan merchandise, pop culture and other entertainment, and luggage.
(e)Includes bed and bath, home décor, school/office supplies, storage, small appliances, kitchenware, greeting cards, party supplies, furniture, lighting, home improvement, and seasonal merchandise.
(f)Includes household cleaning, paper products, over-the-counter healthcare, vitamins and supplements, baby gear, and pet supplies.
Merchandise sales — We record almost all retail store revenues at the point of sale. Digitally originated sales may include shipping revenue and are recorded upon delivery to the guest or upon guest pickup at the store. Sales are recognized net of expected returns, which we estimate using historical return patterns and our expectation of future returns. As of August 1, 2026, January 31, 2026, and August 2, 2025, the liability for estimated returns was $178 million, $155 million, and $179 million, respectively.

Revenue from Target gift card sales is recognized upon gift card redemption, which is typically within one year of issuance.

Gift Card Liability ActivityJanuary 31,
2026
Gift Cards Issued During Current Period But Not Redeemed (b)
Revenue Recognized From Beginning LiabilityAugust 1,
2026
(millions)
Gift card liability (a)
$1,197 $376 $(614)$959 
(a)Included in Accrued and Other Current Liabilities.
(b)Net of estimated breakage.

Advertising revenue — Primarily represents revenue related to certain advertising services provided via our Roundel digital advertising business offering. Roundel services are classified as either Net Sales or as a reduction of Cost of Sales or Selling, General, and Administrative (SG&A) Expenses, depending on the nature of the advertising arrangement.

Credit card profit sharing — We receive payments under a credit card program agreement with TD Bank Group (TD). Under the agreement, we receive a percentage of the profits generated by the Target Circle credit card receivables in exchange for performing account servicing and primary marketing functions. TD underwrites, funds, and owns Target Circle credit card receivables, controls risk management policies, and oversees regulatory compliance.

Other — Includes commissions earned on third-party sales through our Target Plus third-party digital marketplace, Target Circle 360 membership revenue, Shipt membership and service revenues, rental income, and other miscellaneous revenues.