Target (NYSE:TGT – Get Free Report) issued its quarterly earnings results on Wednesday. The retailer reported $1.71 EPS for the quarter, topping the consensus estimate of $1.47 by $0.24, FiscalAI reports. The business had revenue of $25.44 billion for the quarter, compared to analysts’ expectations of $24.66 billion. Target had a net margin of 3.24% and a return on equity of 22.92%. The company’s quarterly revenue was up 6.7% compared to the same quarter last year. During the same quarter last year, the company posted $1.30 earnings per share. Target updated its FY 2026 guidance to 7.500-8.500 EPS.
Here are the key takeaways from Target’s conference call:
- Target reported Q1 net sales up 6.7% and comparable sales up 5.6%, with growth across stores and digital and in all six core merchandise categories. Management said the quarter was stronger than expected and driven mainly by traffic.
- Guest response improved in key priority areas, including baby, wellness, food, and toys, with multiple new assortments and partnerships resonating strongly. Management highlighted early proof points such as double-digit growth in wellness and toys and record launch performance for select collaborations.
- Target is pushing a broad merchandising reset, including a major food transition, a multi-year home reinvention, and the upcoming Target Beauty Studio rollout in more than 600 stores. Executives said these changes are still early but are central to the company’s strategy for sustainable growth.
- Operational execution improved, with store experience metrics at three-year highs and better in-stock performance, especially on top-selling items. The company also said it is investing in AI, facilities, labor, and training to improve availability and guest satisfaction further.
- Target raised its full-year sales outlook to a net sales increase centered around 4% and now expects EPS to land near the high end of its $7.50-$8.50 range. Management remained cautious, noting tougher comparisons in Q2 and ongoing cost headwinds in the first half.
Target Stock Up 3.0%
NYSE TGT opened at $126.01 on Friday. Target has a twelve month low of $83.44 and a twelve month high of $133.10. The company has a debt-to-equity ratio of 0.87, a quick ratio of 0.36 and a current ratio of 0.93. The stock has a market cap of $57.23 billion, a PE ratio of 16.65, a PEG ratio of 3.55 and a beta of 1.01. The firm has a 50-day simple moving average of $122.36 and a 200 day simple moving average of $109.49.
Target Announces Dividend
Analyst Ratings Changes
TGT has been the topic of several recent analyst reports. The Goldman Sachs Group boosted their target price on Target from $112.00 to $127.00 and gave the stock a “neutral” rating in a report on Thursday. Piper Sandler raised their target price on Target from $121.00 to $127.00 and gave the company a “neutral” rating in a research note on Thursday. KeyCorp reiterated a “sector weight” rating on shares of Target in a report on Thursday. Evercore set a $130.00 price objective on shares of Target in a research report on Monday. Finally, BNP Paribas Exane increased their target price on shares of Target from $63.00 to $88.00 and gave the stock an “underperform” rating in a research report on Wednesday, March 4th. Eleven equities research analysts have rated the stock with a Buy rating, nineteen have assigned a Hold rating and three have assigned a Sell rating to the company’s stock. According to data from MarketBeat, the stock has an average rating of “Hold” and an average price target of $124.11.
Get Our Latest Stock Report on Target
More Target News
Here are the key news stories impacting Target this week:
- Positive Sentiment: DA Davidson raised its price target on Target to $155 from $140 and kept a buy rating, signaling confidence in further upside. Benzinga report
- Positive Sentiment: Telsey Advisory Group lifted its target to $150 from $148 and maintained an outperform rating after Target’s stronger-than-expected quarter. Benzinga report
- Positive Sentiment: Target’s Q1 results beat expectations, with EPS of $1.71 on revenue of $25.44 billion, and management raised its FY26 sales outlook, suggesting its turnaround plan is gaining traction. Article: Target Beats Q1 Earnings Estimates on Strong Sales, Raises View
- Neutral Sentiment: Piper Sandler and Robert W. Baird both raised price targets, but kept neutral ratings, implying the stock may be fairly valued after the recent run-up. Benzinga report
- Neutral Sentiment: Analysts and commentary noted that Target’s improved sales and traffic are encouraging, but sustainability concerns and valuation may limit near-term upside. Article: Target: Take Some Chips Off The Table (Rating Downgrade)
- Negative Sentiment: Freedom Capital downgraded Target from strong-buy to hold, reflecting more cautious sentiment despite the earnings beat. Zacks report
- Negative Sentiment: Some coverage warned that Target still faces heavy competition from Walmart and Costco, plus cost and consumer-sentiment headwinds that could pressure results. Article: Target Badly Crippled By Competition
Insider Activity at Target
In related news, CAO Matthew A. Liegel sold 2,053 shares of the company’s stock in a transaction on Tuesday, March 17th. The stock was sold at an average price of $117.19, for a total value of $240,591.07. Following the completion of the transaction, the chief accounting officer directly owned 12,143 shares in the company, valued at approximately $1,423,038.17. This represents a 14.46% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Corporate insiders own 0.16% of the company’s stock.
Institutional Inflows and Outflows
Several institutional investors and hedge funds have recently modified their holdings of the business. Virtu Financial LLC acquired a new stake in Target during the 4th quarter valued at $515,000. Mcguire Capital Advisors Inc. bought a new stake in shares of Target during the fourth quarter worth $67,000. Compound Planning Inc. grew its holdings in shares of Target by 38.4% during the fourth quarter. Compound Planning Inc. now owns 3,872 shares of the retailer’s stock worth $379,000 after purchasing an additional 1,074 shares during the last quarter. TMB Capital Partners LLC bought a new stake in Target during the 4th quarter worth about $300,000. Finally, Invesco Ltd. lifted its position in Target by 21.1% during the 4th quarter. Invesco Ltd. now owns 4,734,609 shares of the retailer’s stock valued at $462,808,000 after purchasing an additional 824,446 shares during the period. 79.73% of the stock is owned by institutional investors and hedge funds.
Target Company Profile
Target Corporation (NYSE: TGT) is a U.S.-based general merchandise retailer headquartered in Minneapolis, Minnesota. The company operates a network of full-line and small-format stores across the United States alongside a national e-commerce platform and mobile app. Target’s retail assortment spans apparel, home goods, electronics, groceries and household essentials, plus beauty, baby and pet categories. The firm complements national brands with a portfolio of owned and exclusive labels and partnerships that help differentiate its merchandise assortment.
Target traces its roots to the Dayton Company, founded by George Dayton in 1902; the Target discount chain was launched in 1962 and the parent company later adopted the Target Corporation name.
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