Target Corporation today announced its first quarter 2026 financial results that beat Wall Street expectations and reported that net sales increased by more than 6% year over year as the retailer works to win back customers under its new CEO, Michael Fiddelke.
Target’s same-store sales increased by 5.6%, marking its first positive same-store sales figure in five quarters.
The retailer’s digital platforms increased by 4.4% year over year in the first quarter of the fiscal year. Digital comparable sales rose 8.9%, a growth the company credited to same-day delivery through its membership, Target Circle 360.
Fiddelke, CEO, told investors, “First quarter financial results were stronger than expected, providing encouraging early signs that our clarified strategy is resonating with our guests and driving broad-based growth across our business. While we’re pleased with our Q1 performance, our focus remains on building consistent, long-term growth, and we recognize there is much more work in front of us. As we look ahead, we’re focused on staying disciplined and flexible in an uncertain operating environment and continuing to invest boldly in our team, capabilities, and an elevated guest experience to unlock our full potential over time.”
The Company has the following updated expectations for 2026:
- Net sales growth in a range around 4 percent compared with 2025 – two percentage points higher than the prior range. The Company continues to expect to grow net sales in every quarter of the year.
- Full-year 2026 operating income margin rate more than 20 basis points higher than the 4.6 percent Adjusted operating income margin rate in 2025.
- GAAP and Adjusted EPS near the high end of the prior guidance range of $7.50 to $8.50.
“Despite our updated guidance, we’re maintaining a cautious outlook given the work we know we have in front of us and ongoing uncertainty in the macroeconomic environment,” Fiddelke told reporters following the earnings release.
Target shares jumped almost 4% following the announcement.
By CEO NA Editorial Staff
