TARGET CORP (TGT)

How they make money

We offer our customers, referred to as "guests," fashionable, differentiated merchandise and everyday essentials at discounted prices. We operate as a single segment designed to enable guests to purchase products seamlessly in stores or through our digital channels. Since 1946, we have given 5 percent of our profit to communities. When used in this report, the terms "we," "our," "us," "Target," and the "Corporation" mean Target Corporation and its subsidiaries, collectively, unless the context otherwise requires or indicates. Strategy Target’s strategy is grounded in our purpose to help all families discover the joy of everyday life and our ambition to be the most delightful experience in reⓘ

Revenue mix

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Economics & cash

Revenue $104.78B. Gross margin 19.8%. Operating margin 4.9%. FCF (OCF−capex) $2.83B. 2025 Form 10-K7 BUSINESSTable of Contents Index to Financial Statements The Liquidity and Capital Resources section in MD&A provides additional details. Competition We compete with omnichannel retailers, including department stores, off-price general merchandise retailers, wholesale clubs, category-specific retailers, drug stores, supermarkets, direct-to-consumer brands, online marketplaces, and oⓘ

Balance sheet & capital allocation

Cash & equivalents $2.68B; long-term debt (XBRL concept) $14.40B; goodwill $631.0M; SBC $281.0M; diluted/basic shares signal 452.8M shares. t aligned with market expectations, if we modify our guidance, if we modify our share repurchase program or our approach to dividend distributions, or if we fail to meet the expectations of investors or securities analysts, our stock price may decline (as it has at times in recent years), and the decrease in the stock price may be disproportionate to any shortfall in our financⓘ

Quality & fragility

e corroborated by observable market data). Financial Instruments Measured on a Recurring Basis Fair Value as of (millions)ClassificationMeasurement LevelJanuary 31, 2026February 1, 2025 Assets Short-term investments (a) Cash and Cash EquivalentsLevel 1$4,611 $3,893 Prepaid forward contracts (b) Other Current AssetsLevel 118 23 Liabilities Interest rate swaps (c) Other Current LiabilitiesLevel 21 — Interest rate swaps (c) Other Noncurrent LiabilitiesLevel 254 125 (a)Carrying value approximates fair value because maturitiesⓘ

What management is saying

and new stores – represents an important driver of our long-term profitability. We expect that comparable sales growth will drive a significant portion of our total sales growth. We believe that our ability to successfully differentiate our guests’ shopping experience through a careful combination of merchandise assortment, price, convenience, guest experience, and other factors will over the long-term drive both increasing shopping frequency (number of transactions, or "traffic") andⓘ

Risks that aren’t boilerplate

o Financial Statements TABLE OF CONTENTS PART I Item 1 Business 2 Item 1A Risk Factors 9 Item 1B Unresolved Staff Comments 20 Item 1C Cybersecurity 21 Item 2 Properties 23 Item 3 Legal Proceedings 24 Item 4 Mine Safet…ⓘ

ness 2 Item 1A Risk Factors 9 Item 1B Unresolved Staff Comments 20 Item 1C Cybersecurity 21 Item 2 Properties 23 Item 3 Legal Proceedings 24 Item 4 Mine Safety Disclosures 24 PART II Item 5 Market for the Registrant's…ⓘ

r guests through guest pick-up at our stores, via common carriers (from stores, supply chain facilities, vendors, and third-party distributors), and same-day delivery. Our stores fulfill the majority of digitally orig…ⓘ

perceptions of our business, consumer boycotts, litigation, investigations, and regulatory proceedings. In particular, certain federal and state officials and agencies have asserted that corporate initiatives regardin…ⓘ

uests largely determines our competitive position within the retail industry. Intellectual Property Our brand image is a critical element of our business strategy. Our principal trademarks, including Target, our "Expe…ⓘ

Open questions

1. Which mix shift (segment / geo / product) actually drove the latest year — and is it durable?
2. How much of FCF is structural vs working-capital / one-time timing?
3. What does capital allocation imply for per-share value after SBC and M&A?
4. Which risk in the filing would change the thesis if it worsened for 2–3 years?