Target Corporation stock research
FY2025 Q3
Target (TGT) Gross Margin — Quarter Ended Nov 1, 2025
Gross profit declined relative to revenue as cost of revenue increased, resulting in a lower gross margin. Compared to the prior quarter, the margin weakened, and compared to the same quarter last year, it was slightly lower.
Gross margin takeaway
Quarter ended Nov 1, 2025 · FY2025 Q3
Gross profit declined relative to revenue as cost of revenue increased, resulting in a lower gross margin. Compared to the prior quarter, the margin weakened, and compared to the same quarter last year, it was slightly lower.
- The most observable driver was the increase in cost of revenue relative to revenue, which reduced gross profit and margin.
- The current quarter's gross margin was lower than the prior quarter and slightly lower than the year-ago quarter.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
28.2%
Gross profit
$7.1B
Revenue
$25.3B
Cost of revenue
$18.1B
Quarter-over-quarter change
-0.8 pts
Year-over-year change
-0.1 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 |
|---|---|---|---|---|
| Feb 1, 2025 | $30.9B | $8.1B | $22.8B | 26.2% |
| May 3, 2025 | $23.8B | $6.7B | $17.1B | 28.2% |
| Aug 2, 2025 | $25.2B | $7.3B | $17.9B | 29.0% |
| Nov 1, 2025 | $25.3B | $7.1B | $18.1B | 28.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Aug 2, 2025
-0.8 pts
Year-over-year change
Nov 2, 2024
-0.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable driver was the increase in cost of revenue relative to revenue, which reduced gross profit and margin.
The current quarter's gross margin was lower than the prior quarter and slightly lower than the year-ago quarter.
Monitor the trend in cost of revenue relative to revenue in future quarters.