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How Target (TGT) makes money

Target (TGT) made $26.5B of revenue in the second quarter fiscal 2027 (Q2 FY27), +5% from a year earlier. Product brought in $25.9B (98%); Advertising revenue brought in $279M (1%); Other brought in $174M (1%). Of every dollar of revenue, 10¢ was left as operating profit, 7¢ was left as net earnings.

Drawing the Sankey…

Target revenue by segment, Q2 FY27Target revenue by segment, Q2 FY27Product$25.9BAdvertising revenue$279MOther$174MCredit card profit sharing$139MOther merchandise sales$48.0M
Target: revenue by line, Q1 FY26 to Q2 FY27Target: revenue by line, Q1 FY26 to Q2 FY27ProductMerchandise salesAdvertising revenueOtherCredit card profit sh…Other merchandise sal…Product: $25.9B latest$25.9BMerchandise sales: $0 latestAdvertising revenue: $279M latestOther: $174M latestCredit card profit sharing: $139M latestOther merchandise sales: $48.0M latestQ1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27Q2 FY27
The mix barely moved between Q1 FY26 and Q2 FY27.
Target revenue by quarterTarget revenue by quarter$30.9BQ4 FY25$23.8BQ1 FY26$25.2BQ2 FY26$25.3BQ3 FY26$30.5BQ4 FY26$25.4BQ1 FY27$26.5BQ2 FY27
Target: where each dollar of revenue goesTarget: where each dollar of revenue goesOperating profit10¢Income tax2¢Net earnings7¢Operating cash flow14¢Free cash flow9¢

Revenue by segment, Q2 FY27

SegmentRevenueShareQ/QY/Y
Product$25.9B97.6%+4%+5%
  ↳ Food & beverage$6.0B22.6%-4%+7%
  ↳ Household essentials$4.6B17.4%+1%+4%
  ↳ Apparel & accessories$4.1B15.4%+6%+0.1%
  ↳ Hardlines (Fun 101)$3.9B14.7%+11%+11%
  ↳ Home furnishings & décor$3.7B13.8%+13%+0.2%
  ↳ Beauty$3.6B13.7%+7%+7%
Advertising revenue$279M1.1%+13%+29%
Other$174M0.7%+0.6%+23%
Credit card profit sharing$139M0.5%+7%+4%
Other merchandise sales$48.0M0.2%-14%+12%

Where each dollar of revenue goes

LineQ2 FY27% of revenue
Revenue$26.5B100.0%
Operating profit$2.6B9.6%
Income tax$582M2.2%
Net earnings$1.9B7.1%
Operating cash flow$3.8B14.3%
Free cash flow$2.4B9.2%

Revenue, quarter by quarter

QuarterRevenueY/Y
Q2 FY27$26.5B+5%
Q1 FY27$25.4B+7%
Q4 FY26$30.5B-2%
Q3 FY26$25.3B-2%
Q2 FY26$25.2B-0.9%
Q1 FY26$23.8B-3%
Q4 FY25$30.9B-3%

From Target's 10-Q filed Aug 28, 2026 (on EDGAR).

Questions

How does Target make money?

Target (TGT) made $26.5B of revenue in the second quarter fiscal 2027 (Q2 FY27), +5% from a year earlier. Product brought in $25.9B (98%); Advertising revenue brought in $279M (1%); Other brought in $174M (1%). Of every dollar of revenue, 10¢ was left as operating profit, 7¢ was left as net earnings.

What is Target's biggest business?

Product: $25.9B in the second quarter fiscal 2027, 98% of revenue, +5% from a year earlier.

What is Target's profit margin?

Net earnings were $1.9B, 7.1% of revenue, in the second quarter fiscal 2027; the operating margin was 9.6%.

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Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.