Income Statement
The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.
Target Corp., consolidated income statement
US$ in millions
Based on: 10-K (reporting date: 2026-01-31), 10-K (reporting date: 2025-02-01), 10-K (reporting date: 2024-02-03), 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30).
The income statement reveals a period of initial growth followed by stabilization and a slight decline in performance over the analyzed timeframe. Net sales experienced substantial growth between 2021 and 2022, increasing from US$93.561 billion to US$106.005 billion. This growth moderated in subsequent years, with sales peaking at US$109.120 billion in 2023 before beginning a gradual descent to US$104.780 billion in 2026. Cost of sales increased consistently alongside net sales, though at a slower rate, resulting in fluctuating gross margins.
- Gross Profitability
- Gross margin demonstrated an initial increase from US$27.384 billion in 2021 to US$31.042 billion in 2022. However, it decreased significantly in 2023 to US$26.814 billion, before recovering somewhat to US$29.584 billion in 2024. The trend continued with slight increases in 2025 and a decrease in 2026, settling at US$29.269 billion. This suggests potential pressures on pricing or increases in the cost of goods sold relative to revenue.
- Operating Performance
- Operating income mirrored the trend in gross margin, rising sharply from US$6.539 billion in 2021 to US$8.946 billion in 2022, then falling dramatically to US$3.848 billion in 2023. A recovery was observed in 2024 and 2025, reaching US$5.707 billion and US$5.566 billion respectively, but it declined again to US$5.117 billion in 2026. Selling, general and administrative expenses increased steadily throughout the period, contributing to the volatility in operating income. Depreciation and amortization also exhibited a consistent, albeit smaller, increase.
- Net Income and Expenses
- Net interest expense generally decreased from US$977 million in 2021 to US$421 million in 2022, but then began to rise again, reaching US$502 million in 2024 and US$445 million in 2026. Net other income (expense) was initially negative, but became positive in 2022 and remained so throughout the forecast period, with a gradual increase. These non-operating items had a relatively small impact on overall profitability compared to operating income. Net earnings followed the pattern of operating income, peaking at US$6.946 billion in 2022 and declining to US$3.705 billion in 2026. The provision for income taxes fluctuated alongside net earnings, maintaining a consistent percentage of earnings.
Overall, the period began with strong growth in sales and profitability, but experienced a significant downturn in 2023. While some recovery occurred in 2024 and 2025, the trend suggests a stabilization at a lower level of performance, with a slight decline continuing into 2026. The consistent increase in operating expenses and the fluctuating gross margin are key factors contributing to this trend.
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