Target (TGT) Q2 2026 (USD): Adj. EPS 4.11 (exp. 2.32), Revenue 26.5bln (exp. 26.12bln); lifts FY outlook to include tariff refunds, Adj. EPS 9.90-10.90 (prev. guided 7.50-8.50, exp. 8.52)

• SSS 2.7% (exp. 2.4%)

The standout feature is the guidance revision framed around tariff refunds, which separates this from a conventional beat-and-raise: a refund is a one-time cash recovery that flatters EPS without improving the underlying run-rate, and episodes of this kind have tended to see the market discount the statutory raise toward the core operating trajectory. The distinction worth drawing is between the size of the refund component and the operational guidance beneath it, since only the latter carries forward into estimates. The comparable sales print beating expectations points to the demand side holding up, which in prior big-box reporting cycles has been the metric the peer set trades on more than the headline EPS. Results this far above consensus typically force an estimate revision cycle, and the first questions on the call have historically gone to the split between refund benefit and organic margin, plus any reversal risk if refund timing shifts. Worth watching is how the read-across lands on discount and general merchandise peers exposed to the same tariff regime, since a refund of this type implies peers may have similar recoveries embedded or not yet recognised. Reaction in the stock on prints of this magnitude has tended to fade toward the quality-of-earnings debate once the initial repricing settles.