Target (TGT) Stock Surges on Earnings Beat and Growth Outlook
Target Corporation's stock rallied 5.5% in premarket trading after exceeding Q4 earnings expectations and projecting its first net sales growth in three years. Adjusted EPS of $2.44 outpaced the $2.16 consensus, while gross margins expanded to 26.6% despite a 1.5% revenue decline.
The retailer's digital comparable sales grew 1.9%, partially offsetting physical store softness. New CEO Michael Fiddelke outlined a turnaround strategy during Target's inaugural investor day, with fiscal 2026 guidance suggesting renewed momentum.
While comparable-store sales dipped 2.5%, the midpoint of full-year adjusted EPS guidance ($8) surpassed analyst estimates. The stock remains 50% below its 2021 peak despite a 16% year-to-date gain, indicating potential for continued recovery.
