Target Q1 2026 Earnings Beat

CNBC reported Wednesday that Target delivered a stronger-than-expected fiscal first quarter, posting its first positive Target same-store sales figure in five quarters and lifting its annual revenue forecast.

Target Posts Surprise Q1 Beat

The retailer’s same-store sales climbed 5.6% for the quarter ending May 2. That snapped a streak of four consecutive quarterly declines in the closely watched metric. Total net sales reached $25.44 billion, clearing the Wall Street consensus of $24.64 billion. Earnings per share came in at $1.71, well above the $1.46 analysts had forecast. The revenue beat was the largest Target has recorded since November 2021.

Foot traffic across physical stores and digital channels rose 4.4% year over year. Digital comparable sales jumped 8.9%, a gain the company credited to same-day delivery under its Target Circle 360 membership programme. Non-merchandise revenue, which includes membership fees and the Target+ third-party marketplace, surged nearly 25% in the period.

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Background: A Retailer Trying to Reverse a Prolonged Slump

Target has spent the better part of two years fighting declining traffic and eroding brand loyalty. The chain lost ground as consumers pulled back on discretionary purchases and rivals sharpened their value messaging. CEO Michael Fiddelke, who assumed the top role earlier this year, inherited a company under pressure to prove it could reignite growth without sacrificing margin.

Gross margin for the quarter came in at 29%, edging past the 28.7% Street estimate. Sales grew across all six core merchandising categories. Health and wellness and the baby and kids segments were standout performers. The latter saw growth accelerate by more than five percentage points in the back half of the quarter.

Guidance Raised, Caution Maintained

Target now expects full-year net sales to grow 4% compared with 2025. That is two percentage points above its prior forecast. Management also guided earnings per share toward the top of the previously stated range of $7.50 to $8.50. Analysts had pencilled in $8.14.

Fiddelke told reporters the updated guidance does not signal complacency. He said the macro backdrop, including elevated fuel costs and broader consumer uncertainty, warrants a measured tone. Executives nonetheless described the shopper as resilient, pointing to continued appetite for new product introductions across Target’s assortment.

The company opened seven new stores during the quarter and said more than 100 remodel projects are currently underway. Shares rose modestly in premarket trading following the release.

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