Target (TGT) Q4 2025 Earnings
Excludes $89 million pretax ($66 million net of tax, $0.15 per share) of non-recurring business transformation costs, primarily exit costs related to excess office space.
How Did TGT Stock React to Q4 2025 Earnings?
S&P 500 over the same 30 days: −3.60%.
Did TGT Beat Earnings? Q4 2025 Results
Yes. Target reported Q4 2025 earnings of $2.44 a share on Mar 3, 2026, beating the $2.16 consensus estimate by 13.0%. Revenue was $30.5B against a $30.5B estimate.
Target posted a stronger-than-expected bottom line in Q4 fiscal 2025, even as sluggish consumer spending continued to weigh on its top line. Adjusted EPS of $2.44 cleared the $2.16 consensus estimate by nearly 13%, lifted by a meaningful improvement in gross margin to 26.6% from 26.2% a year ago, driven by lower inventory shrink and reduced supply chain and digital fulfillment costs. Revenue of $30.45 billion fell 1.5% year-over-year and came in just shy of the $30.47 billion consensus, with comparable sales declining 2.5% as a 3.9% drop in comparable store sales was only partially offset by 1.9% digital growth. Bright spots included Food & Beverage, Beauty, and Toys, along with non-merchandise revenue growing more than 25%, with membership revenue more than doubling. Looking ahead, Target guided fiscal 2026 adjusted EPS of $7.50 to $8.50 on approximately 2% net sales growth, with operating margin expected to expand around 20 basis points, as management pointed to a positive February sales trend as early evidence of a recovery gaining traction.
- Food & Beverage, Beauty, and Toys delivered net sales growth in Q4
- Non-merchandise sales grew over 25% with membership revenue more than doubling year-over-year
- Same-day delivery powered by Target Circle 360 grew over 30%
- Roundel digital advertising revenue delivered double-digit growth
- Marketplace sales grew over 30%
- Gross margin rate improved to 26.6% from 26.2% driven by lower inventory shrink, lower supply chain and digital fulfillment costs
- Sales and traffic trends accelerated in the last two months of the quarter
- Comparable store sales declined 3.9% while comparable digital sales grew 1.9%
- Lower effective tax rate of 20.1% versus 21.5% a year ago
“I'm incredibly proud of how our team navigated through a challenging year in 2025, as they focused on serving our guests while positioning our business for profitable growth in 2026 and beyond.”
Target CEO, on the earnings call
What Was Target's Outlook in Q4 2025?
For fiscal 2026, Target expects net sales growth around 2% compared with fiscal 2025, reflecting a small increase in comparable sales with new stores and non-merchandise sales contributing more than one percentage point of growth. The company expects to grow net sales in every quarter of the year. Full-year 2026 operating income margin rate is expected approximately 20 basis points higher than the 4.6% Adjusted operating income margin rate in fiscal 2025. GAAP and Adjusted EPS guidance is $7.50 to $8.50. Q1 2026 GAAP and Adjusted EPS is expected flat to up slightly from last year's Adjusted EPS of $1.30, with stronger year-over-year EPS growth expected through the balance of the year.
TGT YoY Financials
| Metric | Q4 2025 | Q4 2024 | Year over year |
|---|---|---|---|
| Revenue | $30.5B | $30.9B | −1.5% |
| Gross Profit | $8.1B | $8.0B | +0.9% |
| Operating Income | $1.4B | $1.5B | −5.9% |
| Net Income | $1.0B | $1.1B | −5.2% |
TGT Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.