TGTNEUTRAL

TGT Gross Margin Analysis

29.0%

Updated 129h ago·SEC filings & market data

Key Takeaway

Gross margin is the percentage of revenue left after paying direct product costs, so Target keeps 29.0 cents of every dollar before other expenses.

Sector Performance

21th percentile

TGT

29.0%

Sector Median

46.6%

Sector Avg

47.6%

Prior Period

26.4%(May 2026)

↑ Improving

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Deep Analysis

Gross margin is the percentage of revenue left after paying direct product costs, so Target keeps 29.0 cents of every dollar before other expenses.

That 29.0% sits well below the sector median of 45.1%, placing the company at the 23rd percentile among peers, meaning most similar companies retain a larger share of revenue. The trend data is unavailable: year-over-year change is N/A, quarter-over-quarter change is N/A, and the last eight quarters show no direction. With a low level and no observable trend, the margin offers no clear momentum signal, leaving the main risk as persistent cost pressure relative to the sector. This metric neither supports nor contradicts the overall NEUTRAL verdict, as the current level justifies caution but the absence of trend data prevents a stronger conclusion.

Frequently Asked Questions

What does the Gross Margin tell investors about TGT?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

Who are TGT's closest peers by Gross Margin?

The closest peers by Gross Margin include: LVS (46.9%), ORLY (51.4%), MPWR (55.2%), NEM (56.0%), REI (56.0%).

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Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.