Target (TGT) stock was trading around 1.4% higher in premarket Wednesday after the retailer posted a stronger-than-expected first quarter.
EPS came in at $1.71 against the $1.46 analyst estimate. Revenue hit $25.44 billion, clearing the $24.66 billion consensus.
Net sales grew 6.7% year-over-year. Comparable sales rose 5.6%, and comparable traffic was up 4.4% versus Q1 2025.
$TGT | Target Q1 Earnings Highlights
EPS: $1.71 / Est. $1.46
FY Guidance:
— Wall St Engine (@wallstengine) May 20, 2026
Digital comparable sales climbed 8.9%. The standout number there was same-day delivery, which grew more than 27%, powered by Target Circle 360 memberships.
Non-merchandise sales jumped nearly 25%. That category includes Roundel — Target’s retail media network — along with Target Circle 360 membership revenue and the Target+ marketplace.
CEO Michael Fiddelke said the Q1 results were “stronger than expected” and described them as “encouraging early signs” that the company’s updated strategy is connecting with customers.
Target raised its full-year 2026 net sales growth forecast to approximately 4%, up from a prior estimate of 2%. That’s a meaningful revision for a retailer of this size.
The company now expects full-year adjusted EPS near the high end of its previous guidance range of $7.50 to $8.50. The midpoint of $8.00 is in line with what analysts had penciled in.
Target also projected full-year 2026 operating income margin more than 20 basis points above the 4.6% adjusted rate it posted in 2025.
TGT’s current P/E ratio sits at 15.65, considered fairly moderate for the retail sector. The P/S ratio of 0.55 suggests the stock is trading at a discount to sales.
The GF Score stands at 79 out of 100, with profitability rated 7/10 and financial strength at 6/10. Growth scores a 4/10, pointing to some longer-term questions around sustaining the current pace.
On the insider front, company insiders sold approximately $6.3 million worth of stock over the past three months. That’s worth watching.
Target fulfills more than 97% of its sales through its physical store network, which continues to act as a logistics backbone for its digital growth.
The company operates nearly 2,000 stores and posted over $104 billion in sales in fiscal 2025.
Comparable traffic growth of 4.4% shows more customers actually walking through the doors — or visiting the app — not just bigger basket sizes.
The Target+ marketplace and Roundel ad revenue are becoming a more visible part of the business, with non-merchandise revenue nearly 25% higher than a year ago.
Target’s updated 4% net sales growth forecast for the full year is double what it was guiding for just a quarter ago.
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