Overview
Retail giant's Q4 sales slightly missed analyst expectations
Net income for Q4 beat analyst estimates
Operating income for Q4 beat analyst estimates
Outlook
Target expects 2026 net sales growth around 2% compared with 2025
Company anticipates 2026 operating income margin rate 20 basis points higher than 2025
Target forecasts 2026 GAAP and Adjusted EPS between $7.50 and $8.50
Result Drivers
NON-MERCHANDISE SALES - Non-merchandise sales grew over 25%, with membership revenue more than doubling from a year ago
SAME-DAY DELIVERY - Same-day delivery powered by Target Circle 360 grew over 30%
CATEGORY PERFORMANCE - Food & Beverage, Beauty, and Toys delivered net sales growth in Q4
Company press release: ID:nPn6X7GSra
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Sales | Slight Miss* | $30.45 bln | $30.48 bln (25 Analysts) |
Q4 EPS | $2.30 | ||
Q4 Net Income | Beat | $1.05 bln | $984.57 mln (24 Analysts) |
Q4 Operating Income | Beat | $1.38 bln | $1.36 bln (26 Analysts) |
Q4 Pretax Profit | Beat | $1.31 bln | $1.28 bln (24 Analysts) |
Q4 Comparable Sales | -2.50% |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 12 "strong buy" or "buy", 23 "hold" and 5 "sell" or "strong sell"
The average consensus recommendation for the discount stores peer group is "buy."
Wall Street's median 12-month price target for Target Corp is $105.00, about 7.2% below its March 2 closing price of $113.17
The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 12 three months ago
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)