NEW YORK: Target stock outperformed Wall Street expectations after the retailer reported quarterly revenue of 25.44billion,surpassinganalysts′projectionof24.66 billion.
Strong Quarterly Performance
According to figures released on Wednesday, the company posted earnings per share of 1.71,beatingWallStreetestimatesof1.46. Target reported a 6.7 percent increase in net sales compared to the same period last year. The retailer’s store sales also climbed 5.6 percent, while comparable traffic improved by 4.4 percent during the first quarter of 2026.
Digital Growth Driven by Same-Day Delivery
Digital comparable sales rose 8.9 percent, with same-day delivery emerging as the strongest-performing segment after surging more than 27 percent. Analysts linked the sharp increase largely to the company’s Target Circle 360 membership programme. Revenue from non-merchandise businesses also jumped nearly 25 percent. The segment includes Roundel (Target’s media and advertising business), Target Circle 360 subscription fees, and the Target+ third-party marketplace.
Raised Fiscal 2026 Outlook
Following the stronger-than-expected results, Target raised its fiscal 2026 sales growth forecast to nearly 4 percent, compared to its earlier estimate of around 2 percent. The revised outlook marks a significant upgrade for a retailer operating at Target’s scale.
Management also said it expects full-year adjusted earnings per share to land toward the upper end of its projected range between 7.50and8.50. The midpoint of $8.00 broadly aligns with analyst expectations. The company further projected that fiscal 2026 operating income margin will exceed its adjusted 2025 level of 4.6 percent by more than 20 basis points.
The strong results reflect Target’s successful execution of its digital and membership-driven strategy, with same-day delivery and subscription services emerging as key differentiators in a competitive retail landscape. Investors responded positively to the upgraded guidance.
