Target earnings beat expectations as stock futures crater

Amid the broader market slide to start 2026, Target's modest results look more like a win than anything else

Mar. 3, 2026 at 7:31am

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Target released fourth-quarter results that were less bad than expected, with the retail chain posting net sales of $30.5 billion, down 1.5% from a year ago, and adjusted earnings per share of $2.44. While the headline numbers may sting, the composition of sales tells a more nuanced story, with food, beauty, and toys delivering net sales growth and same-day delivery surging over 30%. Target's new CEO Michael Fiddelke also noted a 'healthy, positive sales increase in February', a promising sign after 2025's yearlong slide.

Why it matters

In the midst of a broader market downturn, with the S&P 500 and Dow Jones Industrial Average both falling sharply, Target's relatively better-than-expected results stand out as a rare bright spot. The retailer's performance and outlook provide some optimism for investors in a turbulent economic environment.

The details

For the fourth quarter, Target reported net sales of $30.5 billion, down 1.5% from a year ago, with comparable sales falling 2.5%. However, the company noted that while store traffic dropped about 3%, customers who did visit spent slightly more. Categories like food, beauty, and toys saw net sales growth, and same-day delivery surged over 30%. On an adjusted basis, earnings per share came in at $2.44, just slightly better than last year's $2.41. Full-year adjusted EPS landed at $7.57, down from $8.86 in 2024, as markdowns, canceled purchase orders, and sales growth in less-profitable categories impacted margins.

  • For the quarter ended January 31, 2026
  • Target's new CEO Michael Fiddelke has been in the chair for only two months

The players

Target

A retail chain headquartered in Minneapolis, Minnesota.

Michael Fiddelke

The new CEO of Target, having taken the role just two months ago.

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What they’re saying

“Target saw 'a healthy, positive sales increase in February'.”

— Michael Fiddelke, CEO

What’s next

For 2026, Target is guiding for about 2% net sales growth and earnings straddling 2025's, but with the high-end of the range rising over last year's figures.

The takeaway

In a turbulent market environment, Target's relatively better-than-expected fourth-quarter results and positive sales outlook for February provide a rare bright spot for investors. The retailer's performance demonstrates its ability to navigate challenging economic conditions and maintain a degree of resilience.