Target Corp (NYSE:TGT) shares gained about 4% to $117.50 in premarket trading Tuesday after the retailer issued a full-year same-store sales forecast that topped Wall Street projections.
The Minneapolis-based company said it expects net sales to grow 2% in 2026 compared with 2025, ahead of analyst estimates of 1.76%, according to LSEG data. Management pointed to expected strength in discretionary categories such as apparel, as well as gains from ongoing cost-cutting measures and expansion of its advertising business.
For the year, Target guided earnings per share between $7.50 and $8.50, with most of the range above the consensus forecast of $7.68 per share.
In the fourth quarter, the retailer reported earnings per share of $2.44, exceeding analyst expectations of $2.16. Revenue totaled $30.45 billion, narrowly missing forecasts of $30.48 billion.