TGT stock surpasses Wall Street projections as quarterly earnings rise

NEW YORK: Target stock outperformed Wall Street expectations after the retailer reported quarterly revenue of $25.44 billion, surpassing analysts’ projection of $24.66 billion.

According to figures released on Wednesday, the company posted earnings per share of $1.71, beating Wall Street estimates of $1.46.

Target reported a 6.7 per cent increase in net sales compared to the same period last year. The retailer’s store sales also climbed 5.6 per cent, while comparable traffic improved by 4.4 per cent during the first quarter of 2026.

Digital comparable sales rose 8.9 per cent, with same-day delivery emerging as the strongest-performing segment after surging more than 27 per cent. Analysts linked the sharp increase largely to the company’s Target Circle 360 membership programme.

Revenue from non-merchandise businesses also jumped nearly 25%. The segment includes Roundel, Target Circle 360 subscription fees, and the Target+ third-party marketplace.

Following the stronger-than-expected results, Target raised its fiscal 2026 sales growth forecast to nearly 4 per cent, compared to its earlier estimate of around 2 per cent. The revised outlook marks a significant upgrade for a retailer operating at Target’s scale.

$TGT | Target Q1 Earnings Highlights

🔹 EPS: $1.71 / Est. $1.46 🟢
🔹 Revenue: $25.44B / Est. $24.66B 🟢

FY Guidance:
🔹 Profit: Sees high end of $7.50-$8.50 range

— Wall St Engine (@wallstengine) May 20, 2026

Management also said it expects full-year adjusted earnings per share to land toward the upper end of its projected range between $7.50 and $8.50. The midpoint of $8.00 broadly aligns with analyst expectations.

The company further projected that fiscal 2026 operating income margin will exceed its adjusted 2025 level of 4.6 per cent by more than 20 basis points.