Target Shares Rise After Upbeat 2026 Profit Outlook

Target (NYSE: TGT) shares advanced over 4% on Tuesday after the retailer provided stronger-than-expected profit guidance for the current fiscal year. The company anticipates net sales growth across every quarter of the upcoming year, forecasting full-year adjusted and unadjusted earnings per share between $7.50 and $8.50, which exceeds the consensus midpoint estimate of $7.61.

Target projects full-year net sales to increase by approximately 2% compared to 2025, driven by a modest rise in comparable sales, along with contributions from new store openings and non-merchandise sales. The operating income margin is expected to expand by about 20 basis points from 2025's 4.6%. CEO Michael Fiddelke noted a "healthy, positive sales increase" in February, marking it as a crucial step towards the company's growth objectives for the year.

This optimistic outlook helped to offset a weaker fourth-quarter performance, where comparable sales declined 2.5%, slightly below Wall Street's expectations. While comparable digital sales grew 1.9%, they also missed forecasts. However, sales and traffic trends accelerated during the final two months of the quarter, which included the key holiday shopping season. Fourth-quarter operating income reached $1.38 billion, surpassing analyst projections of $1.35 billion. Target continues to implement operational adjustments designed to appeal to cost-conscious consumers amidst ongoing economic pressures.

Despite a more than 6% decline over the past year, Target's shares have gained over 12% year-to-date.

Target currently holds an RS Score of 67.91, placing it in the 50.21st percentile within its country and the 52.88th percentile in its sector. The stock demonstrates strong performance in Valuation (92.62) and EPS Revisions (86.00). Conversely, areas such as Growth (26.23), Profitability (16.39), and Momentum (50.45) are currently weaker. Want to discover which stocks rank the highest? Start your free 7-day trial at rankedstocks.com.