Target Shares Rise After Upbeat 2026 Profit Outlook

Target (NYSE: TGT) shares climbed more than 4% intra-day Tuesday after the retailer issued stronger-than-expected profit guidance for the current year, projecting net sales growth in every quarter of 2026.

The Minnesota-based company forecast full-year unadjusted and adjusted earnings per share of $7.50 to $8.50, above the consensus midpoint estimate of $7.61.

Full-year net sales are expected to grow by around 2% compared to 2025 levels. Target said this would be driven by a modest increase in comparable sales, with contributions from new store openings and non-merchandise sales adding more than one percentage point of growth.

Operating income margin is projected to expand by approximately 20 basis points from 2025’s 4.6%, the company said.

Chief Executive Officer Michael Fiddelke stated that Target recorded a “healthy, positive sales increase” in February, describing it as an important milestone in the company’s efforts to return to growth this year.

The guidance and February performance update helped offset weaker fourth-quarter comparable sales, which declined 2.5%, slightly worse than Wall Street expectations for a 2.47% drop. Comparable digital sales increased 1.9% but trailed forecasts calling for 3.21% growth.

Sales and traffic trends showed acceleration during the final two months of the quarter ended January 31, which included the key holiday shopping season.

Quarterly operating income reached $1.38 billion, surpassing analyst projections of $1.35 billion.

Target has been implementing operational changes aimed at attracting cost-conscious shoppers amid ongoing cost-of-living pressures. The company’s shares have declined more than 6% over the past year but have gained more than 12% year-to-date.