Target rises on 2026 sales and earnings growth outlook
Target is up around 4% in premarket trading Tuesday after issuing stronger-than-expected FY2026 guidance that signaled a potential inflection point in the big-box retailer’s prolonged sales slump.
For full-year 2026, the company expects:
Net sales growth of approximately 2% year on year, ahead of the 1.76% analysts had expected, per LSEG data.
Adjusted earnings per share of $7.50 to $8.50, also above the $7.67 consensus estimate at the midpoint.
Still, sales in its latest quarter, ended January 31, remained a little soft:
Net sales of $30.45 billion were slightly below the $30.48 billion analysts had expected.
Adjusted EPS of $2.44 topped the $2.15 that analysts had penciled in.
The holiday quarter marked Target’s fifth quarter in a row where sales have declined year over year, with traffic down for four straight quarters. However, sales growth turned positive in February, which CEO Michael Fiddelke called an “important milestone” on the retailer’s path back to growth.
Fiddelke, who took over as CEO on February 1, is doubling down on a turnaround centered on revamped merchandising, an improved store experience, and heavier use of technology. Back in November, Target said it plans to boost capital spending by ~25% to $5 billion in 2026 to support the efforts.
Still, with shoppers prioritizing food and essentials, Target’s tilt toward discretionary items (such as home goods and apparel) has weighed on its performance relative to rivals like Walmart and Costco — though Target did post strong growth in non-merchandise businesses (ads, paid membership, and marketplace) as well as same-day delivery services.
After falling nearly 30% last year, shares are now up almost 20% so far in 2026 with this latest rise, as investors bet on TGT’s turnaround under Fiddelke’s leadership.
The holiday quarter marked Target’s fifth quarter in a row where sales have declined year over year, with traffic down for four straight quarters. However, sales growth turned positive in February, which CEO Michael Fiddelke called an “important milestone” on the retailer’s path back to growth.
Fiddelke, who took over as CEO on February 1, is doubling down on a turnaround centered on revamped merchandising, an improved store experience, and heavier use of technology. Back in November, Target said it plans to boost capital spending by ~25% to $5 billion in 2026 to support the efforts.
Still, with shoppers prioritizing food and essentials, Target’s tilt toward discretionary items (such as home goods and apparel) has weighed on its performance relative to rivals like Walmart and Costco — though Target did post strong growth in non-merchandise businesses (ads, paid membership, and marketplace) as well as same-day delivery services.
After falling nearly 30% last year, shares are now up almost 20% so far in 2026 with this latest rise, as investors bet on TGT’s turnaround under Fiddelke’s leadership.
