Target (NYSE:TGT) Releases Earnings Results, Beats Estimates By $0.25 EPS

Key Points

• Target beat quarterly earnings expectations, reporting $1.71 in EPS versus the $1.46 consensus estimate. Revenue also came in above expectations at $25.44 billion compared with $24.66 billion.
• The company raised its FY 2026 outlook, guiding for EPS of $7.50 to $8.50 and revenue of $108.5 billion to $109.5 billion. Management’s updated guidance suggests confidence in continued recovery.
• Recent commentary highlighted improving sales momentum, including first-quarter net sales growth of 6.7% and broad-based strength across categories and channels. Analysts, however, remain mixed overall, with Wall Street’s consensus rating still at “Hold.”

Target (NYSE:TGT - Get Free Report) released its quarterly earnings results on Wednesday. The retailer reported $1.71 earnings per share for the quarter, topping analysts' consensus estimates of $1.46 by $0.25, FiscalAI reports. Target had a return on equity of 22.25% and a net margin of 3.54%.The business had revenue of $25.44 billion during the quarter, compared to analysts' expectations of $24.66 billion. Target updated its FY 2026 guidance to 7.500-8.500 EPS.

Target Price Performance

TGT stock opened at $127.00 on Wednesday. The stock has a 50-day moving average price of $122.19 and a two-hundred day moving average price of $109.05. Target has a 12-month low of $83.44 and a 12-month high of $133.10. The company has a current ratio of 0.94, a quick ratio of 0.36 and a debt-to-equity ratio of 0.89. The company has a market cap of $57.68 billion, a PE ratio of 15.62, a price-to-earnings-growth ratio of 3.67 and a beta of 1.01.

Target Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Monday, June 1st. Shareholders of record on Wednesday, May 13th will be given a dividend of $1.14 per share. This represents a $4.56 dividend on an annualized basis and a yield of 3.6%. The ex-dividend date of this dividend is Wednesday, May 13th. Target's payout ratio is 56.09%.

Analyst Upgrades and Downgrades

A number of research analysts have recently commented on TGT shares. Telsey Advisory Group increased their price objective on Target from $145.00 to $148.00 and gave the company an "outperform" rating in a report on Friday, May 15th. Mizuho set a $120.00 price target on Target in a report on Thursday, March 5th. Citigroup raised their price target on Target from $117.00 to $133.00 and gave the company a "neutral" rating in a report on Wednesday, May 6th. Bank of America started coverage on Target in a report on Friday, February 27th. They set an "underperform" rating and a $103.00 price objective for the company. Finally, JPMorgan Chase & Co. lifted their price objective on Target from $120.00 to $129.00 and gave the stock a "neutral" rating in a report on Friday, May 15th. Eleven analysts have rated the stock with a Buy rating, eighteen have assigned a Hold rating and three have given a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus target price of $119.93.

Key Target News

Here are the key news stories impacting Target this week:

• Positive Sentiment: Target reported first-quarter net sales growth of 6.7%, well above expectations, with management saying growth was broad-based across merchandise categories, sales channels, and throughout the quarter.
• Positive Sentiment: The company’s first-quarter results reportedly beat analyst expectations across several key metrics, reinforcing optimism that its refreshed products and stores are resonating with shoppers. Article Title
• Positive Sentiment: Target said it saw its strongest sales gain in years, suggesting more consumers are returning to the brand as the retailer leans into style and value. Article Title
• Positive Sentiment: Target raised or reiterated full-year guidance with FY 2026 EPS of $7.50 to $8.50 versus the Street at $7.72, while revenue guidance of $108.5 billion to $109.5 billion topped consensus, signaling confidence in continued recovery.
• Positive Sentiment: Management’s supply-chain leadership change, including the hiring of former Walmart executive Jeff England, may support longer-term improvement in execution and shopping experience. Article Title
• Neutral Sentiment: Target’s earnings release and conference call are drawing attention because the company is still in a turnaround phase, so investors are watching for evidence that recent momentum can be sustained.
• Negative Sentiment: Some commentary still notes that Target has been working to recover from a yearslong sales slump, so the stock may remain sensitive to any signs that margins or consumer demand weaken again.

Insider Transactions at Target

In other Target news, CAO Matthew A. Liegel sold 2,053 shares of the business's 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 completion of the sale, the chief accounting officer owned 12,143 shares of the company's stock, valued at approximately $1,423,038.17. The trade was a 14.46% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Company insiders own 0.16% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Virtu Financial LLC acquired a new position in shares of Target during the fourth quarter worth about $515,000. Mcguire Capital Advisors Inc. acquired a new stake in Target during the fourth quarter valued at approximately $67,000. Compound Planning Inc. raised its stake in Target by 38.4% during the fourth quarter. Compound Planning Inc. now owns 3,872 shares of the retailer's stock valued at $379,000 after buying an additional 1,074 shares in the last quarter. TMB Capital Partners LLC bought a new position in shares of Target during the fourth quarter valued at approximately $300,000. Finally, Invesco Ltd. grew 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 during the last quarter. Institutional investors and hedge funds own 79.73% of the company's stock.

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.

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