Target’s stock outperformed Wall Street projections following the release of its first-quarter financial results. The retailer reported revenue of $25.44 billion, exceeding analysts’ expectations of $24.66 billion.
In a significant development, Target posted earnings per share of $1.71, well above the anticipated $1.46. Net sales increased by 6.7 percent compared to the same quarter last year, while store sales rose 5.6 percent. Additionally, comparable traffic improved by 4.4 percent during the first quarter of 2026.
Digital comparable sales experienced an 8.9 percent rise, with same-day delivery standing out as the fastest-growing segment, surging over 27 percent. Analysts attributed this strong growth largely to the success of the Target Circle 360 membership program.
Revenue from non-merchandise businesses also saw a notable jump of nearly 25 percent. This segment includes Roundel, Target Circle 360 subscription fees, and the Target+ third-party marketplace.
Following these robust results, Target raised its fiscal 2026 sales growth forecast to nearly 4 percent, a significant increase from its previous estimate of around 2 percent. This revised outlook represents a major upgrade for a retailer of Target’s scale.
Management further indicated that full-year adjusted earnings per share are expected to reach the higher end of the projected range between $7.50 and $8.50, with the midpoint of $8.00 aligning closely with analyst expectations.
Moreover, the company forecasted that its fiscal 2026 operating income margin will surpass the adjusted 2025 level of 4.6 percent by more than 20 basis points, signaling improved profitability.
