Target Corporation Reports First Quarter Earnings

Key Points:

• Target reported a 6.7% increase in first quarter 2026 net sales to $25.4 billion, driven by broad-based growth across merchandise categories, sales channels, and digital sales, which grew 8.9%.
• Comparable store traffic rose 4.4%, with all six core merchandising categories showing sales gains, and non-merchandise sales increasing nearly 25% due to strong advertising, membership, and marketplace revenues.
• First quarter GAAP and Adjusted EPS were $1.71, down 24% from prior-year GAAP EPS (which included one-time legal settlement gains) but up 32% from prior-year Adjusted EPS, reflecting improved operational performance.
• Target raised its full-year 2026 guidance with expected net sales growth around 4%, a slight increase in operating income margin, and GAAP and Adjusted EPS projected near the high end of the $7.50 to $8.50 range.
• The company increased capital expenditures by 31% to $1.0 billion, mainly for new stores and remodels, paid $516 million in dividends, and maintained $8.3 billion in remaining share repurchase capacity, while focusing on long-term growth amid an uncertain environment.