Target Names New CEO as Shares Drop 11% Despite Earnings Beat

Benzinga

Target reported stronger-than-expected Q2 results, with $25.21B in sales and $2.05 EPS versus $2.03 expected. But comparable sales fell nearly 2%, operating income dropped 19%, and profit margins slipped. Outgoing CEO Brian Cornell warned tariffs will bring short-term pressure, sending shares down 11% to $98.20. COO Michael Fidelke has been named the company’s next CEO, effective 2026.

Transcript

00:00Target's getting a new CEO and the stock just fell 11% overnight, even though they beat earnings

00:05expectations. The company actually reported stronger numbers than Wall Street had predicted,

00:10but outgoing CEO Brian Cornell warned that tariffs will bring short-term pressure,

00:14and that sent shares lower. Here's the breakdown. Sales came in at $25.21 billion,

00:20slightly above expectations. Earnings per share hit $2.05 versus $2.03 that was expected,

00:27but comparable sales fell nearly 2% while operating income fell 19%, and profit margins

00:33slipped as shoppers pulled back. At the same time, COO Michael Fidelke was named Target's next CEO

00:39effective 2026. Target's stock is now trading about $98.20, down about 11%. So is this just a

00:46temporary tariff hit, or is Target losing ground to Walmart?

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