Target Q1 2026 Earnings Highlights

Key Points:

• Target reported a strong start to fiscal 2026 with Q1 net sales up 6.7% and comparable sales increasing 5.6%, driven by growth across all six core merchandising categories and a 4.4% rise in store traffic.
• Digital sales grew 8.9%, led by over 27% growth in same-day delivery, while non-merchandise sales, including Roundel, Target Circle 360, and Target Plus, increased nearly 25%.
• Key product categories such as Health & Wellness, Culture & Toys, Baby, and Food & Beverage saw significant sales growth, supported by new item introductions and exclusive partnerships that boosted traffic and engagement.
• Target invested in team payroll and guest experience training, resulting in three-year highs in guest satisfaction metrics and improved item availability; the company also opened seven new stores, including its 2,000th location, and is expanding supply chain capacity.
• For the full year, Target updated its guidance to anticipate around a 4% net sales increase and expects to finish near the high end of its $7.50-$8.50 EPS range, while planning major initiatives like a food and beverage transition, the launch of Target Beauty Studio, and a home reinvention.