Target Q1 Sales Rise 6.7% to $25.4B, Gross Margin Hits 29%
TGT•Target reported Q1 net sales of $25.4 billion, up 6.7% year-over-year, driven by 5.6% comparable sales growth including 8.9% digital growth. Gross margin expanded to 29.0%, adjusted EPS rose 31.6% to $1.71, operating cash flow jumped to $716 million, and full-year sales guidance was raised to 4%.
1. Top-Line Growth and Comps
Target generated $25.4 billion in Q1 net sales, up 6.7% year-over-year, with comparable sales rising 5.6%. Digital comparable sales climbed 8.9% and customer traffic improved by 4.4%, while all six core merchandise categories contributed to the growth.
2. Profitability and Cash Flow
Gross margin expanded to 29.0% from 28.2% year-ago, aided by supply chain productivity and higher advertising revenue. Adjusted EPS increased 31.6% to $1.71 and operating cash flow surged to $716 million, up from $275 million in Q1 2025.
3. Guidance and Strategic Outlook
Management raised full-year net sales growth guidance to 4% and now anticipates adjusted EPS near the high end of its $7.50–$8.50 range. Leadership highlighted early signs of strategy execution success and cautioned on near-term cost headwinds.
