Filing Flows › Target (TGT) › Q2 FY27 › vs Q1 FY27
Target (TGT) Q2 FY27 vs Q1 FY27 (quarter over quarter)
Target's revenue rose $1.1B (+4%) from $25.4B in Q1 FY27 to $26.5B in Q2 FY27. The biggest changes: Product +$1.1B (+4%); Advertising revenue +$33.0M (+13%); Credit card profit sharing +$9.0M (+7%). Operating margin 9.6% against 4.5% (+5.2 pts).
Target, Q2 FY27: revenue $26.5B (+5% year over year), operating margin 9.6%, net earnings $1.9B, operating cash flow $3.8B. The chart draws each line against Q1 FY27, the increases inside each band.
Margins
| Q2 FY27 | Q1 FY27 | Change | |
|---|---|---|---|
| Operating margin | 9.6% | 4.5% | +5.2 pts |
| Net margin | 7.1% | 3.1% | +4.0 pts |
| Free cash flow margin | 9.2% | -1.3% | +10.4 pts |
Every line
| Line | Q2 FY27 | Q1 FY27 | Change | % |
|---|---|---|---|---|
| Food & beverage | $6.0B | $6.3B | −$272M | -4% |
| Household essentials | $4.6B | $4.6B | $47.0M | +1% |
| Apparel & accessories | $4.1B | $3.8B | $244M | +6% |
| Hardlines (Fun 101) | $3.9B | $3.5B | $372M | +11% |
| Home furnishings & décor | $3.7B | $3.2B | $429M | +13% |
| Beauty | $3.6B | $3.4B | $241M | +7% |
| Product | $25.9B | $24.8B | $1.1B | +4% |
| Advertising revenue | $279M | $246M | $33.0M | +13% |
| Other | $174M | $173M | $1.0M | +0.6% |
| Credit card profit sharing | $139M | $130M | $9.0M | +7% |
| Other merchandise sales | $48.0M | $56.0M | −$8.0M | -14% |
| Revenue | $26.5B | $25.4B | $1.1B | +4% |
| Operating profit | $2.6B | $1.1B | $1.4B | +126% |
| Costs & expenses | $24.0B | $24.3B | −$329M | -1% |
| Pre-tax earnings | $2.5B | $1.0B | $1.4B | +138% |
| Other expense, net | $101M | $102M | −$1.0M | -1% |
| Cost of revenue | $17.6B | $18.1B | −$458M | -3% |
| SG&A | $5.7B | $5.6B | $163M | +3% |
| Other operating costs | $651M | $685M | −$34.0M | -5% |
| Net earnings | $1.9B | $781M | $1.1B | +140% |
| Income tax | $582M | $252M | $330M | +131% |
| Depreciation & amortization | $784M | $813M | −$29.0M | -4% |
| Share-based compensation | $100M | $54.0M | $46.0M | +85% |
| Working capital & other | $1.0B | −$932M | $2.0B | — |
| Operating cash flow | $3.8B | $716M | $3.1B | +431% |
| Free cash flow (OCF − capex) | $2.4B | −$319M | $2.8B | — |
| Capital expenditures | $1.4B | $1.0B | $334M | +32% |
Questions
How much did Target's revenue grow quarter over quarter in Q2 FY27?
Target's revenue rose $1.1B (+4%) from $25.4B in Q1 FY27 to $26.5B in Q2 FY27.
What drove Target's revenue change in Q2 FY27?
Product +$1.1B (+4%); Advertising revenue +$33.0M (+13%); Credit card profit sharing +$9.0M (+7%).