Filing Flows › Target (TGT) › Q1 FY27 › vs Q4 FY26
Target (TGT) Q1 FY27 vs Q4 FY26 (quarter over quarter)
Target's revenue fell $5.0B (-16%) from $30.5B in Q4 FY26 to $25.4B in Q1 FY27. The biggest changes: Product −$4.9B (-17%); Advertising revenue −$48.0M (-16%); Other merchandise sales −$32.0M (-36%). Operating margin 4.5% against 4.5% (-0.1 pts).
Target, Q1 FY27: revenue $25.4B (+7% year over year), operating margin 4.5%, net earnings $781M, operating cash flow $716M. The chart draws each line against Q4 FY26, the increases inside each band.
Margins
| Q1 FY27 | Q4 FY26 | Change | |
|---|---|---|---|
| Operating margin | 4.5% | 4.5% | -0.1 pts |
| Net margin | 3.1% | 3.4% | -0.4 pts |
Every line
| Line | Q1 FY27 | Q4 FY26 | Change | % |
|---|---|---|---|---|
| Food & beverage | $6.3B | $6.6B | −$374M | -6% |
| Household essentials | $4.6B | $4.7B | −$126M | -3% |
| Apparel & accessories | $3.8B | $4.1B | −$256M | -6% |
| Hardlines (Fun 101) | $3.5B | $6.0B | −$2.5B | -41% |
| Beauty | $3.4B | $3.5B | −$87.0M | -2% |
| Home furnishings & décor | $3.2B | $4.8B | −$1.6B | -33% |
| Product | $24.8B | $29.8B | −$4.9B | -17% |
| Advertising revenue | $246M | $294M | −$48.0M | -16% |
| Other | $173M | $191M | −$18.0M | -9% |
| Credit card profit sharing | $130M | $127M | $3.0M | +2% |
| Other merchandise sales | $56.0M | $88.0M | −$32.0M | -36% |
| Revenue | $25.4B | $30.5B | −$5.0B | -16% |
| Operating profit | $1.1B | $1.4B | −$245M | -18% |
| Costs & expenses | $24.3B | $29.1B | −$4.8B | -16% |
| Pre-tax earnings | $1.0B | $1.3B | −$275M | -21% |
| Other expense, net | $102M | $72.0M | $30.0M | +42% |
| Cost of revenue | $18.1B | $22.3B | −$4.3B | -19% |
| SG&A | $5.6B | $6.0B | −$487M | -8% |
| Other operating costs | $685M | $681M | $4.0M | +0.6% |
| Net earnings | $781M | $1.0B | −$265M | -25% |
| Income tax | $252M | $263M | −$11.0M | -4% |
| Operating cash sources | $1.6B | $1.9B | −$285M | -15% |
| Depreciation & amortization | $813M | $803M | $10.0M | +1% |
| Share-based compensation | $54.0M | $84.0M | −$30.0M | -36% |
| Working capital & other | $932M | −$1.1B | $2.1B | — |
| Operating cash flow | $716M | $3.1B | −$2.4B | -77% |
| Capital expenditures | $1.0B | $885M | $150M | +17% |
| Negative free cash flow (OCF − capex) | $319M | −$2.2B | $2.5B | — |
Questions
How much did Target's revenue grow quarter over quarter in Q1 FY27?
Target's revenue fell $5.0B (-16%) from $30.5B in Q4 FY26 to $25.4B in Q1 FY27.
What drove Target's revenue change in Q1 FY27?
Product −$4.9B (-17%); Advertising revenue −$48.0M (-16%); Other merchandise sales −$32.0M (-36%).