Target reports Q2 adjusted EPS of $2.05, beating estimates despite a sales dip. The retailer maintains its cautious outlook as it plans for beauty's future post-Ulta.

Better-than-feared earnings weren't enough to offset pessimism over CEO Brian Cornell's retirement and replacement with an insider.

Target has appointed Michael Fiddelke as its next chief executive officer, effective February 1, after reporting second-quarter results that topped Wall Street expectations but underscored persistent pressure on sales and store traffic.

General merchandise retailer Target (NYSE:TGT) reported in Q2 CY2025, but sales were flat year on year at $25.21 billion. Its non-GAAP profit of $2.05 per share was 0.7% above analysts’ consensus estimates.

Target stock falls after reporting Q2 results. Analysts maintain mixed ratings, note CEO departure and future plans.

Target shares are down 10% on Wednesday morning after the company reported Q2 results and operational updates. The stock had been climbing recently as investors anticipated confirmation of a long-term turnaround. Instead, the report sent shares below the critical $100 level and the stock’s 50-day moving average.

In addition to announcing its Q2 2025 results, Target also revealed that it would be getting a new CEO. The company announced that its current CEO, Brian Cornell, will be stepping down from the role in February 2026. On February 1, its new CEO, Michael Fiddelke, will take the reins. Cornell has been Target’s CEO since 2014.

Michael Fiddelke, chief operating officer, will succeed Brian Cornell as CEO and join Target's board of directors.

The announcement of Target’s new CEO on Wednesday was accompanied by its second-quarter earnings report, which shows slumping sales.

The countdown is on for Target Corporation’s TGT second-quarter fiscal 2025 earnings release, set for Aug. 20, before the market opens. The Zacks Consensus Estimate for second-quarter revenues stands at $24.