Target’s New CEO Delivers As Traffic Growth Returns – Sees Faster FY26 Sales Growth

• Target posted its first same-store sales growth after five straight quarters of declines, with comparable sales rising 5.6% as shoppers returned to stores.
• The company also reported a 4.4% increase in traffic and broad-based growth across all six of its merchandise categories.
• Digital sales climbed 8.9%, driven by more than 27% growth in same-day delivery, while non-merchandise revenue rose nearly 25%.

Target Corp.’s (TGT) new CEO Michael Fiddelke’s turnaround efforts are gaining steam after the retail giant delivered a strong first-quarter (Q1) earnings beat and raised its sales outlook for fiscal year 2026.

Target reported earnings per share of $1.71 on revenue of $25.44 billion during Q1, surpassing Wall Street expectations of an EPS of $1.46 on revenue of $24.66 billion, according to Fiscal.ai data.

This is Target’s first earnings report following the appointment of Fiddelke as the company’s chief in February this year.

Target shares were up nearly 3% in Wednesday’s pre-market trade. TGT was among the top trending tickers on Stocktwits at the time of writing.

TGT Registers Same-Store Sales Growth After 5 Quarters

Target registered its first same-store sales growth after five consecutive quarters of decline. The retailer reported a 5.6% year-on-year growth in same-store sales during the quarter as customers returned to stores.

The company also reported a 4.4% increase in traffic and broad based growth across all its six merchandise categories. Target had reported a decline of 3.8% in same-store sales during the same period a year ago.

Digital sales rose 8.9%, fueled by more than 27% growth in same-day delivery, while high-margin non-merchandise revenue, including Roundel, Target Circle 360 and Target Plus, climbed nearly 25%.

“First quarter financial results were stronger than expected, providing encouraging early signs that our clarified strategy is resonating with our guests and driving broad-based growth across our business," said Fiddelke.

TGT Hikes FY26 Sales Outlook

Target hiked its fiscal year 2026 sales outlook buoyed by the momentum in Q1. The company now expects sales to rise 4% during the year, up from its previous forecast of 2% growth.

The retailer reaffirmed its FY26 EPS guidance of $7.50 to $8.50. The midpoint of $8 per share came in slightly below Wall Street estimates of $8.11.

Target said it is accelerating product refresh efforts across key categories, including a major food and beverage overhaul, the launch of Target Beauty Studio in more than 600 stores this fall and a redesign of nearly 75% of home decorative accessories.

The retailer also highlighted investments in innovation and supply chain operations, including a new EPIC Lab focused on automation and engineering solutions and a new Colorado food distribution center aimed at improving freshness and reliability.

How Did Retail Traders React To TGT?

Retail sentiment on Stocktwits around Target trended in the ‘extremely bullish’ territory, with message volumes at ‘extremely high’ levels at the time of writing.

TGT stock is up 30% year-to-date. The S&P 500 ETF (SPY) is up 23% over the past 12 months, while the Vanguard Mid-Cap Index Fund ETF Shares (VO) is up 11%.

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