Target

TGT Q1 2026 Earnings

Reported May 20, 2026 at 7:57 AM ET · SEC Source

Q1 26 EPS

$1.71

BEAT +17.03%

Est. $1.46

Q1 26 Revenue

$25.44B

BEAT +3.19%

Est. $24.66B

vs S&P Since Q1 26

+2.8%

BEATING MARKET

TGT +3.5% vs S&P +0.7%

Market Reaction

Did TGT Beat Earnings? Q1 2026 Results

Target Corporation delivered a standout first quarter of fiscal 2026, posting earnings per share of $1.71 against a consensus estimate of $1.46, a beat of 17.03%, while net sales of $25.44 billion grew 6.7% year-over-year and cleared expectations by … Read more Target Corporation delivered a standout first quarter of fiscal 2026, posting earnings per share of $1.71 against a consensus estimate of $1.46, a beat of 17.03%, while net sales of $25.44 billion grew 6.7% year-over-year and cleared expectations by 3.19%. The headline numbers were powered by a broad-based comparable sales gain of 5.6%, itself driven by a 4.4% increase in customer traffic, a sharp reversal from the 3.8% comparable sales decline recorded a year ago. Gross margin widened to 29.0% from 28.2%, supported by improved supply chain productivity, lower markdown rates, and nearly 25% growth in non-merchandise revenue streams including Roundel advertising and Target Circle 360 memberships. The company's digital comparable sales climbed 8.9%, with same-day delivery growing more than 27%. The strong execution has lifted management's confidence heading into the rest of the year; Target raised its full-year 2026 net sales growth outlook to approximately 4% and now expects GAAP and adjusted EPS near the high end of its $7.50 to $8.50 guidance range.

Key Takeaways

  • Comparable sales grew 5.6%, driven by 4.4% traffic growth and 1.1% average transaction amount increase
  • Digital comparable sales grew 8.9%, led by more than 27% growth in same-day delivery via Target Circle 360
  • Non-merchandise sales grew nearly 25%, driven by Roundel ad revenue, Target Circle 360 membership, and Target+ marketplace
  • All six core merchandising categories posted year-over-year sales growth
  • Gross margin rate expanded to 29.0% from 28.2% due to improved supply chain productivity, advertising revenue growth, and lower markdowns
  • Stores originated comparable sales grew 4.7%
24/7 Wall St

TGT YoY Financials

Q1 2026 vs Q1 2025, source: SEC Filings

24/7 Wall St

TGT Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 26 Q4 26

“First quarter financial results were stronger than expected, providing encouraging early signs that our clarified strategy is resonating with our guests and driving broad-based growth across our business.”

— Michael Fiddelke, Q1 2026 Earnings Press Release