Target Q4 EPS of $2.44 Beats by $0.28; Margins Strengthen, Guides 2% Sales
Target delivered Q4 adjusted EPS of $2.44, beating the $2.16 forecast, while revenue of $30.45 billion dipped 1.5% year-on-year. Gross margin rose to 26.6% and 2026 guidance projects about 2% net sales growth with $7.50–$8.50 adjusted EPS.
1. Q4 Financial Results
Target reported adjusted Q4 EPS of $2.44, up 1% year-over-year and $0.28 above analyst consensus. Revenue declined 1.5% to $30.45 billion, with comparable sales down 2.5% including a 3.9% drop in stores partly offset by 1.9% digital growth.
2. Margin Improvements
Gross margin expanded to 26.6% from 26.2% a year ago, driven by lower inventory shrink, reduced supply chain and fulfillment costs, and higher-margin advertising revenues. Adjusted operating income was $1.5 billion, slightly exceeding last year’s figure.
3. 2026 Guidance Outlook
For fiscal 2026, Target expects net sales growth around 2% and adjusted EPS between $7.50 and $8.50, projecting modest operating margin expansion. Management highlighted a positive sales uptick in February as a key sign of recovery in consumer demand.