Target Corporation stock research
FY2026 Q1
Target (TGT) Gross Margin & Quarterly History
Explore Target Corporation (TGT) gross margin from 2023 through the latest reported quarter, using SEC-sourced revenue, gross profit, and direct costs.
Gross margin takeaway
Quarter ended May 2, 2026 · FY2026 Q1
Revenue and gross profit both increased compared to the same quarter one year earlier, while cost of revenue rose less rapidly, resulting in an improved gross margin. Sequentially, revenue and gross profit decreased from the previous quarter, but gross margin strengthened as cost of revenue declined more sharply.
- The sequential improvement in gross margin, despite lower revenue, indicates that cost of revenue fell faster than revenue, the most observable margin driver this quarter.
- Compared to the immediately preceding quarter, revenue and gross profit were lower, but gross margin improved. Compared to the same quarter one year earlier, revenue, gross profit, and gross margin were all higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
29.0%
Gross profit
$7.4B
Revenue
$25.4B
Cost of revenue
$18.1B
Quarter-over-quarter change
+2.4 pts
Year-over-year change
+0.8 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Aug 2, 2025 | $25.2B | $7.3B | $17.9B | 29.0% |
| Nov 1, 2025 | $25.3B | $7.1B | $18.1B | 28.2% |
| Jan 31, 2026 | $30.5B | $8.1B | $22.3B | 26.6% |
| May 2, 2026 | $25.4B | $7.4B | $18.1B | 29.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jan 31, 2026
+2.4 pts
Year-over-year change
May 3, 2025
+0.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The sequential improvement in gross margin, despite lower revenue, indicates that cost of revenue fell faster than revenue, the most observable margin driver this quarter.
Compared to the immediately preceding quarter, revenue and gross profit were lower, but gross margin improved. Compared to the same quarter one year earlier, revenue, gross profit, and gross margin were all higher.
Monitor the trajectory of cost of revenue relative to revenue in future quarters to see if the margin improvement persists.
Peer context
Latest available gross margins for related public companies.
| Company | Gross margin |
|---|---|
| Target Corporation (TGT) | 29.0% |