Target's Retail Media Growth Highlights an Expanding Profit Lever

Target's retail media business Roundel achieved nearly 20% year-over-year gross billings growth in Q2 fiscal 2026, with advertising revenues reaching $279 million, up from $217 million. The higher-margin advertising and non-merchandise sales are strengthening Target's overall profit mix and margin performance. Walmart and Dollar General are similarly scaling their retail media platforms as key profit drivers.