Target raises 2026 outlook after strongest sales growth since 2022
Target Corp. raised its 2026 financial outlook after reporting a 5.6% rise in comparable sales in the quarter ended May 2, 2026, its first positive comp after three straight declines.[1]
Net sales rose 6.7% to $25.44 billion, while first-quarter earnings fell to $781 million, or $1.71 per share, from $1.04 billion, or $2.27 a year earlier.[1] Target raised its 2026 net-sales growth outlook to about 4% and said it expects EPS near the high end of a $7.50-$8.50 range, while analysts project $8.12 per share and $108.97 billion in sales.[1]
In March the company unveiled a $6 billion turnaround plan focused on remodeling stores, improving staffing and training, and returning to affordable, stylish clothing.[1] The plan includes guidance that 75% of decorative home accessories will be new this year.[1]
Target has faced boycotts and protests tied to its rollback of diversity, equity and inclusion initiatives, and CEO Christina Fiddelke was among 60 Minnesota CEOs who signed a January letter urging de-escalation.[1] Activists in Minnesota say the DEI-related boycott continues even as Target calls its sales momentum "guardedly optimistic." FOX 9
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📌 Key Facts
- Comparable sales rose 5.6% in the quarter ending May 2, 2026, marking Target’s first positive comparable‑sales quarter after three straight quarterly declines.
- Net sales increased 6.7% to $25.44 billion, while first‑quarter earnings fell to $781 million, or $1.71 per share, from $1.04 billion, or $2.27 per share a year earlier.
- 2026 net sales growth outlook was raised to about 4%, and Target said it expects EPS near the high end of a $7.50–$8.50 range; analysts project $8.12 per share and $108.97 billion in sales.
- $6 billion turnaround plan, unveiled in March, focuses on remodeling stores, improving staffing and training, and restoring Target’s reputation for affordable, stylish clothing, with guidance that 75% of decorative home accessories will be new this year.
- Boycotts and protests have pressured Target over its rollback of DEI initiatives; CEO Fiddelke was among 60 Minnesota CEOs who signed a January letter calling for de‑escalation and cooperation among officials.
- DEI-related boycott activists in Minnesota say the boycott is ongoing even as Target reports improved sales and describes its momentum under the new CEO as “guardedly optimistic.”
📰 Source Timeline (2)
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- Confirms comparable sales rose 5.6% in the quarter ending May 2, 2026, as part of Target’s first positive comp after three straight quarterly declines.
- Specifies that net sales rose 6.7% to $25.44 billion and that first‑quarter earnings were $781 million, or $1.71 per share, down from $1.04 billion, or $2.27 per share, a year earlier.
- Details that Target raised its 2026 net sales growth outlook to about 4% and expects EPS near the high end of $7.50–$8.50, with analysts projecting $8.12 per share and $108.97 billion in sales.
- Describes the $6 billion turnaround plan unveiled in March, focused on remodeling stores, improving staffing and training, and regaining its reputation for affordable, stylish clothing, including guidance that 75% of decorative home accessories will be new this year.
- Adds political and social context: Target has been dealing with boycotts and protests over its rollback of DEI initiatives and broader culture‑war pressure, and Fiddelke was among 60 Minnesota CEOs who signed a January letter calling for de‑escalation and cooperation among officials.
- Notes that Minnesota activists say the DEI‑related boycott is ongoing, even as Target reports improved sales and ‘guardedly optimistic’ momentum under the new CEO.