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.

Results over the last few years have fallen short of our expectations and our potential,” current CEO Brian Cornell says.

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.

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.

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

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.

Target (NYSE:TGT) shares drop after insider CEO appointment disappoints investors, despite better-than-expected Q2 results and improved sales trends.

All six core merchandising categories saw sequential improvements, while digital comparable sales advanced 4.3% on the back of over 25% growth in same-day delivery through Target Circle 360 and continued strength in Drive Up.