Target Corporation (NYSE:TGT) shares rose around 1.4% in premarket trading on Wednesday after the retailer posted first-quarter results that came in ahead of Wall Street forecasts.
The company reported earnings per share of $1.71, outperforming analyst expectations of $1.46, while revenue reached $25.44 billion, above consensus estimates of $24.66 billion.
Sales growth strengthens across stores and digital channels
Target’s net sales increased 6.7% year over year, supported by broad-based growth across merchandise categories and sales channels.
Comparable sales rose 5.6% during the quarter, while comparable customer traffic advanced 4.4% compared with the first quarter of 2025.
Digital comparable sales climbed 8.9%, driven in part by more than 27% growth in same-day delivery services powered by Target Circle 360.
The retailer also recorded a sharp increase in non-merchandise revenue, which surged nearly 25% thanks to strong performance from Roundel advertising revenue, Target Circle 360 membership income and the Target+ online marketplace.
“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 Michael Fiddelke, Chief Executive Officer of Target.
Company raises full-year guidance
Following the stronger quarterly performance, Target increased its full-year outlook and now expects net sales growth of around 4% compared with 2025, double its previous forecast of 2% growth.
The company also said it expects full-year 2026 adjusted earnings per share to come in near the upper end of its earlier guidance range of $7.50 to $8.50. The midpoint of $8.00 aligns with current analyst expectations.
In addition, Target projected that its full-year 2026 operating income margin rate will be more than 20 basis points higher than the adjusted operating income margin of 4.6% recorded in 2025.