Target's stock surged 5.05% in pre-market trading following the release of its fourth-quarter financial results and an optimistic outlook for the current fiscal year.

The retailer reported adjusted earnings per share of $2.44 for the fourth quarter, significantly exceeding analyst estimates of approximately $2.15. This performance was driven by better-than-expected profitability metrics, including pretax profit, operating income, and net income, all of which surpassed consensus forecasts.

Investors reacted positively to Target's forward-looking guidance, which projected net sales growth of about 2% for the 2026 fiscal year, a figure that is above market expectations. The company also forecasted that it would grow net sales in every quarter of the year and provided full-year adjusted EPS guidance with a midpoint that is ahead of analyst estimates. This strong outlook, coupled with the earnings beat, fueled the significant pre-market rally.