Target Raises 2026 Capital Spend by $2B, Analysts Lift Price Targets to $145
Target’s Q4 adjusted EPS of $2.44 topped estimates while sales fell 1.5% year-over-year to $30.45B, missing the $30.51B forecast. The retailer plans a $5B capital investment in 2026—including $2B incremental spend—and analysts raised price targets to as high as $145 on boosted EPS forecasts.
1. Q4 Financial Results
Target delivered Q4 adjusted EPS of $2.44 versus the $2.15 estimate while revenue slipped 1.5% year-over-year to $30.45 billion, underperforming the $30.51 billion forecast.
2. 2026 Capital and Store Growth Plans
The retailer will boost total 2026 capital investment to approximately $5 billion, including an incremental $2 billion for new store openings, full-store remodels of over 130 locations, technology enhancements and supply-chain upgrades, targeting 300 new stores by 2035.
3. EPS and Sales Guidance
Management projects 2026 adjusted EPS of $7.50–$8.50 and revenues of $106.876 billion, compared with consensus estimates of $7.68 EPS and $106.672 billion in sales, signaling modest upside potential.
4. Analyst Ratings and Price Targets
Following the strategic update, one firm upgraded to Outperform and raised its price target to $145 while boosting 2026 EPS forecasts to $8.07 and 2027 to $8.63; another firm maintained Buy status and lifted its target to $130, highlighting margin improvements and 2%–3% comp growth momentum.