TGT TARGET CORP

Overview and Growth

In fiscal 2025, TARGET CORP recorded $104.78B of revenue, net income of $3.71B, and an operating cash inflow of $6.56B. Revenue of $104.78B sets the scale for evaluating how effectively sales translated into profit and cash during the year. The top line contracted 1.7% from $106.57B in fiscal 2024; this top-line contraction left the company with a smaller revenue base. The company reported diluted EPS of $8.13, adding a shareholder-level measure to the absolute income figures considered below. Against diluted EPS of $8.86 in fiscal 2024, the current result was 8.2% lower. Revenue equaled 1.76x of total assets, indicating how much reported top-line activity the company produced relative to its period-end asset base.

Profitability

After reported cost of revenue, the company retained $29.27B as gross profit before recognizing operating expenses and other items. Gross profit represented 27.9% of revenue, showing how much of the top line remained after direct costs. The reported operating result was $5.12B, capturing profitability after direct costs and the operating expenses reflected in the statements. Operating margin measured 4.9%, showing the portion of revenue preserved after the full set of operating costs. Net income came to $3.71B, completing the progression from revenue through gross and operating profitability to the final reported result. Net margin was 3.5%, meaning that this portion of revenue remained as net income after all recognized expenses. Before income taxes, the company reported $4.77B of earnings, providing a bridge between the operating result and final net income. Measured against revenue, pretax income equaled 4.5%, adding a pre-tax profitability layer between revenue and net income. The reported income-tax provision was $1.06B, the amount recognized between pretax income and the final net-income result. The effective relationship between income tax and positive pretax income was 22.3%, without assuming a statutory-rate comparison.

Liquidity and Capital Structure

At period end, the $59.49B asset base was financed through $43.33B of liabilities and $16.16B of equity. Current assets were $20.00B against $21.23B of current liabilities, framing the resources and obligations classified within the near-term balance-sheet horizon. At 0.94x, current liabilities exceeded current assets and placed pressure on the company’s near-term liquidity position. The company held $5.49B in cash and equivalents, a narrower liquidity measure than total current assets. Cash and equivalents represented 25.9% of current liabilities, showing the portion of near-term obligations matched by reported cash alone. Total debt was $14.40B, establishing the amount of borrowing carried within the company’s capital structure. Debt equaled 0.89x of book equity, describing the relative scale of borrowing and shareholder capital. Debt represented 24.2% of total assets, placing borrowing in the context of the company’s full resource base. Liabilities represented 72.8% of total assets, quantifying the liability-funded share of the company’s resource base. The cash-to-assets relationship was 9.2%, comparing reported cash and equivalents with the full positive asset balance.

Cash Flow and Earnings Quality

The company reported $6.56B of operating cash flow, a cash inflow that shows the cash generated by operations. The operating-cash-flow-to-net-income relationship was 1.77x, comparing cash generated by operations with the bottom-line earnings result. Capital spending was $3.73B, absorbing part of the cash generated from operations before free cash flow. Relative to operating cash flow, capital expenditures measured 56.8%, connecting investment intensity with the company’s cash-generation base. After capital spending, free cash flow was $2.83B, leaving cash available for debt reduction, shareholder returns, or further investment. Free cash flow represented 2.7% of revenue, linking post-investment cash generation with the company’s operating scale. The free-cash-flow-to-assets relationship was 4.8%, comparing post-investment cash with the balance-sheet asset base.

Based on the annual report for the fiscal year ending Jan 31, 2026. Analysis generated Oct 21, 2026.