Target Corp
Q3 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +3.35%.
Did TGT Beat Earnings? Q3 2026 Results
Target posted a mixed but ultimately resilient set of Q3 fiscal 2025 results, beating on the bottom line while falling just short on revenue in a quarter that underscored the persistent pressure weighing on the retailer. Adjusted EPS came in at $1.78, clearing the $1.71 consensus estimate by 4.21%, though the figure still represented a 3.9% decline from a year ago. Revenue of $25.27 billion missed the $25.29 billion consensus by a slim 0.07% and slipped 1.6% year-over-year, with a 2.7% drop in comparable sales reflecting continued softness in discretionary categories like apparel and home furnishings. The earnings beat was clouded by $161 million in pretax transformation charges tied to severance and asset impairments, which dragged GAAP diluted EPS to $1.51. Incoming CEO Michael Fiddelke struck a measured tone, noting performance was in line with expectations, while the company heads into a holiday season with over 20,000 new items on shelves. Target maintained its Q4 outlook for a low-single-digit sales decline, with full-year adjusted EPS expected between $7.00 and $8.00.
- Digital comparable sales grew 2.4%, led by more than 35% growth in same-day delivery powered by Target Circle 360
- Food & Beverage and Hardlines ('Fun 101') delivered comparable sales growth
- Non-merchandise sales grew nearly 18% with Roundel, membership, and marketplace revenues all growing double digits
- Lower inventory shrink and efficiency gains in supply chain and digital fulfillment
- Additional tax credits reduced effective income tax rate to 19.8% from 21.7%
“Thanks to the incredible work and dedication of the Target team, our third quarter performance was in line with our expectations, despite multiple challenges continuing to face our business.”
Target CEO, on the earnings call
Forward Guidance & Outlook
For Q4 fiscal 2025, Target maintains its expectation of a low-single-digit decline in sales. Full-year GAAP EPS is now expected to be approximately $7.70 to $8.70. Full-year Adjusted EPS, excluding gains from Q1 litigation settlements and Q3 severance/asset-related charges, is now expected to be approximately $7.00 to $8.00. The company is investing in holiday newness with over 20,000 new items (twice the prior year), expanded next-day shipping to more than half the U.S. population, and value-focused pricing on food, beverage, and essentials.
TGT YoY Financials
TGT Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.