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Is Target (TGT) stock halal?

Screened against AAOIFI Shari’ah Standard 21

Not settled. Target (TGT) could not be confirmed either way under the AAOIFI Shari’ah Standard 21 screen. Its annual report has a product line called ‘Credit Card Profit Sharing’ (0.5% of revenue). We couldn’t tell from the name whether it is conventional banking, lending or insurance. We show this as Needs Review rather than guess. Last checked 2 October 2026.

VerdictNeeds Review

Target needs further review under Halal / Islamic guidelines

Faith Score
56
out of 100
Status
Needs Review
Last checked
Sector
Consumer Defensive
Purification
Not settled

AAOIFI Shari’ah Standard 21 Financial Audit

Figures from the latest annual report (the SEC filing or, for European companies, the ESEF annual report, where one exists, checked against Yahoo Finance) and a 36-month average market value.

TestStandard LimitActual FigureStatus
Main business——Pass
Interest-bearing debt30%28.37%Pass
Cash and interest-bearing investments30%17.35%Pass
Prohibited income5%—Review
Not just cash and debts90%16.98%Pass

Key Findings & Observations

  • Its annual report has a product line called ‘Credit Card Profit Sharing’ (0.5% of revenue). We couldn’t tell from the name whether it is conventional banking, lending or insurance.
    Source: https://www.sec.gov/Archives/edgar/data/27419/000002741926000016/
  • Companies in its industry (SEC industry code 5331 (Retail-Variety Stores)) usually sell alcohol. It doesn’t report how much of its revenue that is.
    Source: Business check
  • The prohibited income test couldn’t be settled: The share of revenue from conventional banking, lending or insurance and alcohol isn’t reported.
    Source: AAOIFI Shari'ah Standard 21

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Frequently Asked Questions about Target Corporation (TGT)

Is Target (TGT) stock halal?▾

Not settled. Target (TGT) could not be confirmed either way under the AAOIFI Shari’ah Standard 21 screen. Its annual report has a product line called ‘Credit Card Profit Sharing’ (0.5% of revenue). We couldn’t tell from the name whether it is conventional banking, lending or insurance. We show this as Needs Review rather than guess. Last checked 2 October 2026.

What is Target's debt ratio under Islamic finance standards?▾

Under AAOIFI Shari’ah Standard 21, interest-bearing debt must stay under 30% of a company's 36-month average market value. Target's ratio is about 28.4%.

How much dividend purification is required for Target (TGT) stock?▾

No purification is required for Target based on its latest annual report.

Does Target operate in prohibited business activities?▾

AAOIFI Shari’ah Standard 21 excludes companies whose main business is prohibited, such as alcohol, pork, gambling, conventional interest-based finance and adult entertainment. Target's main business is checked against these. For companies that file with the US SEC, revenue by division is also read from the filing, so a division in a prohibited business is counted. Where the check cannot be settled, the result is shown as Needs Review rather than guessed.

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