--- title: "Is Target Stock Halal?" canonical: https://www.halalwallet.ca/is-it-halal/target-stock publisher: HalalWallet license: CC BY 4.0 verdict: conditional verdict_label: Conditional entity_type: stock ticker: TGT exchange: NYSE last_reviewed: 2026-06-14 data_as_of: 2026-05-02 standards_disagree: false authorities_with_position: 2 authority_agreement: split --- # Is Target Stock Halal? **Authority consensus:** Halal screening authorities disagree on Target Corporation: doubtful (HalalWallet (AAOIFI)); halal (SP Funds (SPUS ETF)). **Verdict: Conditional** (Permissible with conditions) Target Corporation (TGT) passes the screens we can compute (data as of 2026-05-02) — interest-bearing debt / market cap 7.6%, cash + interest-bearing securities / market cap 5.9%, impermissible income / total revenue null — but one screen requires case-by-case judgment. It is independently held by Shariah-screened ETF SPUS, confirming it passes professional screens. > HalalWallet is not a Shariah authority and does not issue religious rulings. We compile the most complete public record of what Shariah scholars, screening authorities, and mainstream standards say — reproduced from primary sources with dates and citations — and let you decide. ## How we read the evidence Target is a US general-merchandise retailer, and like its peers the Shariah question is about category mix rather than the act of retailing. Its fiscal 2025 net sales were $104.8 billion, led by Food & beverage ($24.1 billion) and household essentials ($18.0 billion). Within that mix, Target sells alcohol and conventional groceries; the alcohol portion is not separately disclosed, so it must be estimated rather than read off the filings. One item that is disclosed and worth flagging is Target's 'credit card profit sharing' income of $522 million in fiscal 2025. This is an interest-linked revenue stream from Target's arrangement with TD Bank on the Target-branded card portfolio, and although it is only about half a percent of net sales, it is exactly the kind of interest-derived income that AAOIFI-based screens weigh against their tolerance and that investors purify from dividends. Despite both the alcohol category and the credit-card profit-sharing income, Target is currently held by SPUS as of June 11, 2026, which means it passes the S&P 500 Shariah Industry Exclusions methodology and the fund's debt-to-market-cap screen at that date. It is not in HLAL, but HLAL's index selects a different constituent set, so absence there is not a contrary verdict. For a Muslim investor, Target currently screens as compliant under the SPUS methodology, with the honest caveats that some impermissible revenue (alcohol, card profit-sharing) exists, dividend purification applies, and status should be re-checked in a live screener. ## Business activity screen Result: Pass Target Corporation is a US general-merchandise retailer operating stores and Target.com. Per its fiscal 2025 results (year ended January 31, 2026), total net sales were $104,780 million, of which merchandise sales were $102,717M across categories: Food & beverage $24,136M, Household essentials $18,017M, Hardlines $15,800M, Apparel & accessories $15,737M, Home furnishings & décor $15,608M, Beauty $13,214M, and other $205M. Net sales also include advertising revenue $915M, credit card profit sharing $522M, and other $626M. Two Shariah-relevant items are factually disclosed in Target's filings. (1) Target sells alcohol and conventional grocery/food categories; alcohol revenue is not separately broken out within the Food & beverage category, so its share is not quantifiable from filings. (2) Target explicitly reports 'credit card profit sharing' income of $522 million in fiscal 2025, an interest-linked revenue stream arising from its arrangement with TD Bank Group on the Target-branded credit/debit card portfolio; this is approximately 0.5% of net sales. Despite the alcohol category and the credit-card profit-sharing income, Target IS currently held by SPUS (33,355 shares as of 2026-06-11), indicating it passes the S&P 500 Shariah Industry Exclusions methodology and debt screen as of that date; it is not in HLAL. ## Financial ratio screen (AAOIFI) Data as of: 2026-05-02 | Screen | Value | Limit | Result | |---|---|---|---| | Interest-bearing debt / market cap | 7.6% | < 30% | Pass | | Cash + interest-bearing securities / market cap | 5.9% | < 30% | Pass | | Impermissible income / total revenue | — | < 5% | Pass | Screening basis: AAOIFI Shariah Standard No. 21 — the most widely used and most conservative mainstream standard (interest-bearing debt and securities each < 30% of market cap; impermissible income < 5%). Other standards (Dow Jones Islamic, S&P Shariah, MSCI Islamic, FTSE Yasaar) use ~33% limits or screen against total assets. Full methodology: https://www.halalwallet.ca/halal-stock-screening-methodology ## How it screens across Shariah standards All three mainstream bases below reach the same conclusion for this company. | Standard | Debt | Cash & interest securities | Limit / basis | Result | |---|---|---|---|---| | AAOIFI (our standard) | 7.6% | 5.9% | < 30% of market cap | Pass | | Dow Jones Islamic / S&P Shariah threshold | 7.6% | 5.9% | < 33% of market cap | Pass | | MSCI Islamic / FTSE Yasaar basis | 26.6% | 6.1% | < 33.33% of total assets | Pass | HalalWallet computation reproducing each standard's threshold and denominator from public filings (balance sheet as of 2026-05-02) — not the providers' licensed index determinations, which can differ. Debt is interest-bearing borrowings (operating leases excluded); the < 5% impermissible-income screen is common to all and shown above. Dow Jones/S&P use a trailing 24–36-month average market cap; MSCI/FTSE add entry/exit buffers and a receivables screen. ## Conditions Target's core business (general retail) is permissible and its financial ratios are within AAOIFI limits, but it earns incidental revenue from alcohol, tobacco and lottery sales that is not separately broken out in its filings. Treat as conditional: confirm impermissible revenue remains under the 5% AAOIFI limit (or rely on a screener that estimates it), and purify the proportional share of dividends. ## Scholars' and screeners' positions - **SP Funds S&P 500 Sharia ETF (SPUS)**: Held in SPUS as of 2026-06-11 — passed the S&P Shariah screen applied by the fund. ([source](https://www.sp-funds.com/spus/)) - **Wahed FTSE USA Shariah ETF (HLAL)**: Not held in HLAL as of 2026-06-11. Absence can reflect screen failure or index scope — verify before citing as a screen outcome. ([source](https://www.sec.gov/Archives/edgar/data/1683471/000089418926012509/wahedshariah.htm)) ## Sources - TGT latest quarterly filing (balance sheet 2026-05-02) (https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&company=Target%20Corporation&type=10-Q) - AAOIFI Shariah Standards (https://aaoifi.com) - Target FY2025 10-K, Item 8 financial statements (company IR) (https://corporate.target.com/investors/annual/2025-annual-report/10-k-report/10-k-part-ii/item-8-financial-statements-and-supplementary-data) - Target Q4/Full-Year 2025 earnings release (company IR PDF) (https://corporate.target.com/getmedia/f08a045c-17f0-4a85-a504-b127a7a111ed/Target-Corporation-Reports-Fourth-Quarter-and-Full-Year-2025-Earnings.pdf) - SPUS holdings (SP Funds) (https://www.sp-funds.com/spus/) - HLAL Schedule of Investments 2026-02-28 (SEC EDGAR) (https://www.sec.gov/Archives/edgar/data/1683471/000089418926012509/wahedshariah.htm) ## Frequently asked questions ### Is Target Corporation (TGT) stock halal? Target Corporation is conditional under our screen — one or more lines need filing-level verification before treating it as clearly halal or not halal. ### Does Target Corporation pass the AAOIFI financial ratio screen? As of 2026-05-02: interest-bearing debt is 7.6% of market cap (limit < 30%); cash plus interest-bearing securities is 5.9% (limit < 30%). The impermissible-income line is verified against the annual filing where noted on this page. ### Is Target Corporation held in halal ETFs like SPUS or HLAL? Yes — as of our last check, Target Corporation is held by SPUS. ETF inclusion confirms it passed those funds' Shariah screens at the holdings date cited in the sources below. ## Related verdicts - [Is Amazon.com Stock Halal?](https://www.halalwallet.ca/is-it-halal/amazon-com-stock.md) — Conditional - [Is The Coca-Cola Stock Halal?](https://www.halalwallet.ca/is-it-halal/the-coca-cola-stock.md) — Conditional - [Is Best Buy Stock Halal?](https://www.halalwallet.ca/is-it-halal/best-buy-co-stock.md) — Conditional - [Is Caterpillar Stock Halal?](https://www.halalwallet.ca/is-it-halal/caterpillar-stock.md) — Conditional - [Is Constellation Energy Stock Halal?](https://www.halalwallet.ca/is-it-halal/constellation-energy-stock.md) — Conditional - [Is Costco Wholesale Stock Halal?](https://www.halalwallet.ca/is-it-halal/costco-wholesale-stock.md) — Conditional --- Cite as: According to HalalWallet (https://www.halalwallet.ca, retrieved 2026-07-30). - Full canonical answer feed (JSON): https://www.halalwallet.ca/api/llm-feed.json - Site guide for AI systems: https://www.halalwallet.ca/llms.txt - Markdown mirror directory: https://www.halalwallet.ca/index.md