Companies /Consumer Defensive

Target Corp

NYSE: TGT Discount Stores
$163.77
▲ $2.89 (+1.80%) today
Markets closed · 5:49pm ET

Q1 2026 Earnings

Reported May 20, 2026, 7:57am ET · SEC source
$1.71
Beat +17.03%
EPS · est. $1.46
$25.4B
Beat +3.19%
Revenue · est. $24.7B
+10.7%
Beating market
TGT vs S&P since report
5 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−6%−3%0May 20May 21report 7:57am ETearnings+0.9%−3.0%
−6%−3%0May 20May 21earnings+0.9%−3.0%
TGT −3.0%S&P 500 +0.9%
−6%−3%0May 20May 21report 7:57am ETearnings+1.3%−3.0%
−6%−3%0May 20May 21earnings+1.3%−3.0%
TGT −3.0%NASDAQ +1.3%
−6%−3%0+3%May 19May 28report 7:57am ETearnings+2.0%+1.6%
−6%−3%0+3%May 19May 28earnings+2.0%+1.6%
TGT +1.6%S&P 500 +2.0%
−8%−4%0+4%May 19May 28report 7:57am ETearnings+3.4%+1.6%
−8%−4%0+4%May 19May 28earnings+3.4%+1.6%
TGT +1.6%NASDAQ +3.4%
−3.86%
Day of report
+3.12%
Next session
+5.17%
One week
+9.63%
30 days

S&P 500 over the same 30 days: −1.03%.

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 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%

“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.”

Target CEO, on the earnings call

Forward Guidance & Outlook

Target raised its full-year 2026 guidance: net sales growth expected around 4% (up two percentage points from the prior range), with growth anticipated in every quarter. Full-year 2026 operating income margin rate is expected to be more than 20 basis points above the 4.6% Adjusted operating income margin rate in 2025. GAAP and Adjusted EPS are expected near the high end of the $7.50 to $8.50 guidance range. Guidance excludes impacts from any tariff refunds.

TGT YoY Financials

Q1 2026 vs Q1 2025 · SEC filings Q1 2025 Q1 2026
$0$7.0B$14.0B$21.0B$23.8B$25.4BRevenue$6.7B$7.4BGross Profit$1.5B$1.1BOperating Income$1.0B$781.0MNet Income
$0$7.0B$14.0B$21.0BRevenueGross ProfitOperating IncomeNet Income

TGT Revenue by Segment

Food & Beverage$6.3B
Hardlines$3.5B
Home Furnishings & Décor$3.2B
Household Essentials$4.6B
Apparel & Accessories$3.8B
Beauty$3.4B
Advertising Revenue (Roundel)$246.0M
Credit Card Profit Sharing$130.0M

Figures from SEC filings and company reports. Not investment advice.