Target (NYSE:TGT) Announces Quarterly Earnings Results, Beats Estimates By $0.28 EPS

Target (NYSE:TGT) released its quarterly earnings results on Tuesday. The retailer reported $2.44 earnings per share for the quarter, topping the consensus estimate of $2.16 by $0.28, FiscalAI reports. The business had revenue of $30.45 billion for the quarter, compared to analysts’ expectations of $30.52 billion. Target had a net margin of 3.58% and a return on equity of 22.74%. The firm’s revenue for the quarter was down 1.5% compared to the same quarter last year. During the same period in the previous year, the company earned $2.41 earnings per share. Target updated its Q1 2026 guidance to 1.300- EPS and its FY 2026 guidance to 7.500-8.500 EPS.

Here are the key takeaways from Target’s conference call:

• Target outlined a clear, focused strategy — four priorities (merchandising authority, guest experience, technology, and team/community) — and plans a >$2 billion incremental investment in 2026 (including ~$1 billion CapEx and ~$1 billion P&L reinvestment) to drive a return to growth.
• Management is executing a broad merchandising reset across all 2,000 stores this year (home, beauty, apparel, Fun one-o-one, food, baby), including a relaunch of Threshold, expanded Target Plus marketplace, and a new Target Beauty Studio in 600 stores to increase traffic and differentiation.
• Stores and store-facing investments are central — plan to open 30+ new full-size stores, complete >130 full-store remodels in 2026 (expected ~2–4% first-year lifts), and add store payroll/training to improve in-stock, service, and execution.
• Digital and loyalty remain growth and margin drivers — same‑day services generated >$14B, Target Circle members spend materially more (3x) and Target Circle 360 members (7x), while AI-driven personalization and Roundel/Target Plus expansion are cited as incremental profit levers.
• Execution and macro risks remain — management acknowledges past merchandising lapses, the plan requires complex, simultaneous changes (execution risk), and tariff/legal uncertainty and last year’s one‑time costs are still variables that could pressure near‑term results.

Target Price Performance

TGT opened at $120.84 on Wednesday. The company has a debt-to-equity ratio of 0.99, a current ratio of 0.97 and a quick ratio of 0.27. The stock’s 50 day simple moving average is $108.64 and its 200 day simple moving average is $97.91. The firm has a market cap of $54.72 billion, a price-to-earnings ratio of 14.67 and a beta of 1.12. Target has a 1 year low of $83.44 and a 1 year high of $122.43.

Target Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Sunday, March 1st. Investors of record on Wednesday, February 11th were issued a dividend of $1.14 per share. The ex-dividend date was Wednesday, February 11th. This represents a $4.56 annualized dividend and a yield of 3.8%. Target’s dividend payout ratio is currently 55.34%.

Wall Street Analyst Weigh In

TGT has been the topic of several recent research reports. Wolfe Research upgraded Target from an “underperform” rating to a “peer perform” rating in a research report on Tuesday, January 27th. Wells Fargo & Company upped their target price on Target from $115.00 to $130.00 and gave the stock an “overweight” rating in a research note on Friday, February 27th. Mizuho upped their price objective on shares of Target from $88.00 to $100.00 and gave the stock a “neutral” rating in a research report on Monday. BMO Capital Markets dropped their target price on shares of Target from $95.00 to $90.00 and set a “market perform” rating for the company in a research report on Thursday, November 20th. Finally, DA Davidson set a $120.00 price objective on shares of Target in a research report on Monday, January 12th. Ten analysts have rated the stock with a Buy rating, twenty-one have issued a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat.com, Target currently has a consensus rating of “Hold” and a consensus target price of $109.59.

Key Target News

Here are the key news stories impacting Target this week:

• Positive Sentiment: Q4 adjusted EPS beat estimates ($2.44 vs. ~$2.16 consensus) and margins improved, giving investors confidence in profitability despite softer sales. Target climbs after earnings beating forecasts despite softer sales
• Positive Sentiment: Management issued FY2026 EPS guidance that exceeded consensus (7.50–8.50 vs. ~7.33), signaling confidence in the year ahead and supporting upside expectations. Target Beats Q4 Earnings Estimates, Eyes Sales Growth in FY2026
• Positive Sentiment: Company unveiled a multi-year strategic plan and will invest an incremental $2B in 2026 (capex + operating investments) to refresh stores, upgrade payroll/training and accelerate tech — including AI — to drive personalization and sales. Target Outlines Strategic Plan for a New Chapter of Growth in 2026 and Beyond
• Positive Sentiment: Market reaction was amplified by investor coverage of Target’s push into AI-driven personalization and same-day fulfillment as a near-term sales catalyst. Target Corp. (TGT) Jumps 6.7% as Firm Turns to AI For Growth
• Neutral Sentiment: Net sales were essentially flat to slightly down (Q4 net sales ~$30.5B), with strength in Food & Beverage, Beauty and Toys offset by weaker comps overall — mixed operational readthrough. Target Corporation Reports Fourth Quarter and Full-Year 2025 Earnings
• Negative Sentiment: Q1 FY2026 EPS guide was well below the street (around $1.30 vs. ~$1.89 consensus), highlighting near-term sales pressure and tempering the earnings beat. Target Corporation (TGT) Q4 2025 Earnings Call Transcript
• Negative Sentiment: Some analysts remain cautious: a recent Mizuho note raised its price target but kept a neutral rating, underscoring that upside depends on execution of the turnaround plan. Analyst note (Mizuho) / coverage

Institutional Trading of Target

Large investors have recently added to or reduced their stakes in the stock. Virtu Financial LLC purchased a new stake in shares of Target in the 4th quarter worth about $515,000. Mcguire Capital Advisors Inc. purchased a new stake in Target during the 4th quarter valued at $67,000. Compound Planning Inc. increased its holdings in shares of Target by 38.4% in the 4th quarter. Compound Planning Inc. now owns 3,872 shares of the retailer’s stock worth $379,000 after purchasing an additional 1,074 shares in the last quarter. TMB Capital Partners LLC purchased a new position in shares of Target in the fourth quarter worth $300,000. Finally, Invesco Ltd. lifted its holdings in shares of Target by 21.1% during the fourth 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 in the last quarter. Institutional investors own 79.73% of the company’s stock.

About Target

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.