Target Posts $30.5B Q4 Sales, 2.5% Comps Decline and 2026 Sales Outlook
Target’s Q4 net sales of $30.5 billion fell 1.5% as same-store sales declined 2.5%, while adjusted EPS of $2.44 matched guidance. New CEO Michael Fiddelke projects 2% net sales growth for full-year 2026, driven by new stores, non-merchandise revenue and a 20-basis-point margin expansion.
1. Fourth-Quarter Results
Target reported Q4 net sales of $30.5 billion, down 1.5% year-over-year, with comparable sales declining 2.5% as in-store sales fell 3.9% offset by a 1.9% rise in digital. Adjusted EPS stood at $2.44, including 15 cents of non-recurring transformation costs, and non-merchandise sales surged over 25%.
2. Full-Year 2025 Performance
Full-year net sales totaled $104.8 billion, a 1.7% decline from 2024, reflecting a 2.6% comparable sales drop partially offset by 17 new store openings and double-digit growth in membership and marketplace revenue. Adjusted EPS of $7.57 fell from $8.86 last year, while adjusted operating margin rate held at 4.8%.
3. 2026 Guidance and Turnaround Plan
CEO Michael Fiddelke expects around 2% net sales growth in 2026, with new stores and non-merchandise revenue contributing over one point, and targets a 20-basis-point improvement in operating income margin. Key initiatives include strengthening merchandising authority, expanding same-day delivery, growing membership programs and executing strategic cost reductions.