Target Corporation (TGT) Announced Q4 2026 Earnings on March 3, 2026

Financial results: Management reported a decline in sales for the fourth quarter, but successfully grew adjusted operating income dollars and adjusted EPS over the prior year. GAAP operating dollars and EPS were down a small amount in Q4 as the company recognized about $90 million of nonrecurring business transformation costs.

For the prior year, the gross margin rate was down about 30 basis points, aided by lower inventory shrink which delivered about 90 basis points of benefit.

Notably, same-day services generated more than $14 billion in sales last year.

Key business updates: Target is executing a strategic transformation with a more than $2 billion incremental investment this year.

This includes an additional $1 billion in capital for new stores and remodels, and another $1 billion reinvested into the P&L to elevate the guest experience.

Notable product initiatives include introducing Target Beauty Studio in 600 stores, launching a new style series in apparel, and expanding the Good & Gather food brand.

Management is also investing hundreds of millions of dollars to support additional store labor and training, alongside technology investments in AI to make search more conversational.

Forward guidance: For the full year 2026, Target expects to grow net sales in a range around 2% versus last year.

Management anticipates generating GAAP and adjusted EPS in a range from 7.50 to 8.50 in 2026.

The company plans approximately $5 billion in capital expenditures this year, supporting the opening of more than 30 new stores and the completion of more than 130 full-store remodels.