Target delivers earnings beat, CEO 'encouraged' by turnaround traction

Target delivers earnings beat, CEO 'encouraged' by turnaround traction Brian Sozzi · Executive Editor Wed, August 19, 2026 at 6:34 AM EDT 4 min read TGT KR WMT After chopping prices and overhauling its merchandise department, retailer Target ( TGT ) did its part for the second straight quarter to signal that its worst days in 2024 and 2025 are in the rearview mirror. The retailer delivered another big earnings beat versus estimates. Sales increased in all merchandise departments, led by beauty and food. Store traffic increased. More from Yahoo Scout The company even jacked up its full-year sales and profit outlooks. "We're encouraged," Target CEO Michael Fiddelke told Yahoo Finance in an interview. "We laid out a plan for the year that had a lot of change in it — more change to what we were selling and how we were going to sell it than in the last decade. And a couple of quarters in, it's great to see a strong guest response to some of the places we're making changes." "There's a lot of work still in front of us," Fiddelke added, "and the goal isn't a couple strong quarters. The goal is years of sustained top-line growth. And so we'll turn the page on this one and get back to work." School supplies are displayed at a Target store on Aug. 13, 2026, in downtown Brooklyn in New York City. (Michael M. Santiago/Getty Images) · Michael M. Santiago via Getty Images Since the start of 2026, Target has moved quickly to rewrite its merchandising wrongs to improve traffic to its stores …