Target Corporation stock research
FY2025 Q1
Target (TGT) Gross Margin — Quarter Ended May 3, 2025
Revenue and gross profit were lower than both the prior quarter and the same quarter last year. Gross margin improved from the prior quarter but weakened compared to the year-ago period, reflecting a mixed performance.
Gross margin takeaway
Quarter ended May 3, 2025 · FY2025 Q1
Revenue and gross profit were lower than both the prior quarter and the same quarter last year. Gross margin improved from the prior quarter but weakened compared to the year-ago period, reflecting a mixed performance.
- The sequential improvement in gross margin was driven by a proportionally larger decline in cost of revenue relative to revenue. However, the year-over-year comparison shows a slight weakening.
- Compared to the immediately preceding quarter, revenue decreased while gross margin increased. Compared to the same quarter one year earlier, both revenue and gross margin were lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
28.2%
Gross profit
$6.7B
Revenue
$23.8B
Cost of revenue
$17.1B
Quarter-over-quarter change
+1.9 pts
Year-over-year change
-0.6 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 3, 2024 | $25.5B | $7.6B | $17.8B | 30.0% |
| Nov 2, 2024 | $25.7B | $7.3B | $18.4B | 28.3% |
| Feb 1, 2025 | $30.9B | $8.1B | $22.8B | 26.2% |
| May 3, 2025 | $23.8B | $6.7B | $17.1B | 28.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Feb 1, 2025
+1.9 pts
Year-over-year change
May 4, 2024
-0.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The sequential improvement in gross margin was driven by a proportionally larger decline in cost of revenue relative to revenue. However, the year-over-year comparison shows a slight weakening.
Compared to the immediately preceding quarter, revenue decreased while gross margin increased. Compared to the same quarter one year earlier, both revenue and gross margin were lower.
Monitor whether gross margin can stabilize or improve relative to the year-ago level.