Target (NYSE:TGT) Posts Earnings Results

Target (NYSE:TGT) announced its quarterly earnings results on Wednesday. The retailer reported $1.71 earnings per share for the quarter, beating analysts’ consensus estimates of $1.47 by $0.24, FiscalAI reports. Target had a net margin of 3.54% and a return on equity of 22.25%. The business had revenue of $25.44 billion during the quarter, compared to analysts’ expectations of $24.66 billion. During the same period last year, the business earned $1.30 earnings per share. The business’s revenue for the quarter was up 6.7% on a year-over-year basis. 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 Price Performance

Shares of NYSE TGT opened at $122.91 on Thursday. Target has a fifty-two week low of $83.44 and a fifty-two week high of $133.10. The firm’s 50-day simple moving average is $122.25 and its 200 day simple moving average is $109.26. The company has a quick ratio of 0.36, a current ratio of 0.94 and a debt-to-equity ratio of 0.89. The stock has a market cap of $55.82 billion, a P/E ratio of 15.12, a P/E/G ratio of 3.78 and a beta of 1.01.

Target Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, June 1st. Shareholders of record on Wednesday, May 13th will be issued a $1.14 dividend. This represents a $4.56 dividend on an annualized basis and a yield of 3.7%. The ex-dividend date of this dividend is Wednesday, May 13th. Target’s payout ratio is currently 56.09%.

Analysts Set New Price Targets

A number of brokerages have commented on TGT. Citigroup upped their price objective on shares of Target from $117.00 to $133.00 and gave the stock a “neutral” rating in a research report on Wednesday, May 6th. Wolfe Research upgraded shares of Target from an “underperform” rating to a “peer perform” rating in a research report on Tuesday, January 27th. The Goldman Sachs Group upped their price objective on shares of Target from $91.00 to $112.00 and gave the stock a “neutral” rating in a research report on Wednesday, March 4th. Weiss Ratings restated a “hold (c)” rating on shares of Target in a research report on Monday, May 4th. Finally, Wells Fargo & Company upped their price target on shares of Target from $135.00 to $140.00 and gave the stock an “overweight” rating in a research note on Tuesday, May 12th. Eleven analysts have rated the stock with a Buy rating, nineteen have assigned a Hold rating and three have given a Sell rating to the stock. Based on data from MarketBeat, Target presently has a consensus rating of “Hold” and a consensus target price of $120.18.

Key Headlines Impacting Target

Here are the key news stories impacting Target this week:

• Positive Sentiment: Target reported strong first-quarter results, with earnings per share of $1.71 and revenue of $25.44 billion, both ahead of estimates. Sales rose 6.7% year over year, traffic increased 4.4%, and digital and membership-related revenue also improved. Target Corporation Reports First Quarter Earnings
• Positive Sentiment: The company raised its full-year sales outlook, signaling that its turnaround strategy under CEO Michael Fiddelke is gaining traction and that shoppers are responding better to refreshed products, stores, and category investments. Reuters article
• Positive Sentiment: Management said Q1 results validate the refreshed strategy, with stronger traffic, improved comparable sales, and better performance across merchandise categories and channels. TGT Q1 Earnings Call Highlights Early Strategy Gains
• Neutral Sentiment: Target also named former Walmart executive Jeff England as its new supply chain and logistics chief, a move aimed at improving efficiency and execution as part of the broader turnaround. Reuters article
• Negative Sentiment: Despite the earnings beat, investors are worried about cost pressures, execution risk, and weaker consumer sentiment, which could limit how much of the turnaround translates into profit improvement this year. Motley Fool article
• Negative Sentiment: Freedom Capital downgraded Target from “strong-buy” to “hold,” adding to pressure on the stock and suggesting some analysts think much of the recent improvement is already reflected in the share price. Zacks.com

Insider Buying and Selling at Target

In other Target news, CAO Matthew A. Liegel sold 2,053 shares of Target stock in a transaction dated Tuesday, March 17th. The stock was sold at an average price of $117.19, for a total transaction of $240,591.07. Following the transaction, the chief accounting officer owned 12,143 shares of the company’s stock, valued at $1,423,038.17. The trade was a 14.46% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. 0.16% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the business. State Street Corp lifted its holdings in shares of Target by 2.5% during the third quarter. State Street Corp now owns 37,648,065 shares of the retailer’s stock worth $3,377,031,000 after buying an additional 911,964 shares during the last quarter. Charles Schwab Investment Management Inc. lifted its holdings in shares of Target by 3.4% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 17,065,926 shares of the retailer’s stock worth $1,668,194,000 after buying an additional 561,898 shares during the last quarter. 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 worth $462,808,000 after buying an additional 824,446 shares during the last quarter. Ameriprise Financial Inc. lifted its holdings in shares of Target by 17.1% during the second quarter. Ameriprise Financial Inc. now owns 3,162,050 shares of the retailer’s stock worth $311,911,000 after buying an additional 461,495 shares during the last quarter. Finally, AQR Capital Management LLC lifted its holdings in shares of Target by 243.8% during the fourth quarter. AQR Capital Management LLC now owns 2,870,210 shares of the retailer’s stock worth $280,563,000 after buying an additional 2,035,298 shares during the last quarter. 79.73% of the stock is currently 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.