The Target Turnaround Is Real. Here's What Investors Should Know.

Target reported strong second-quarter earnings that exceeded expectations, with adjusted EPS growing 20% year-over-year and revenue climbing 5.3% to $26.5 billion. Digital sales grew 8.7%, and the company raised full-year EPS guidance to $9.90-$10.90. While a nearly $1 billion tariff refund boosted results, underlying operational performance remains solid. The stock has risen 65% year-to-date, though the retailer still faces challenges from inflation, tariffs, and reputation recovery from past controversies.