TGT Q1 2026 Earnings
Reported May 21, 2025 at 7:02 AM ET · SEC Source
Q1 26 EPS
$1.30
MISS 21.27%
Est. $1.65
Q1 26 Revenue
$23.85B
MISS 2.06%
Est. $24.35B
vs S&P Since Q1 26
+16.5%
BEATING MARKET
TGT +40.1% vs S&P +23.6%
Market Reaction
Did TGT Beat Earnings? Q1 2026 Results
Target delivered a deeply disappointing fiscal Q1 2026, missing on both the top and bottom lines as weakening consumer demand and execution pressures weighed on results. Adjusted EPS came in at $1.30, falling 21.27% short of the $1.65 consensus estim… Read more Target delivered a deeply disappointing fiscal Q1 2026, missing on both the top and bottom lines as weakening consumer demand and execution pressures weighed on results. Adjusted EPS came in at $1.30, falling 21.27% short of the $1.65 consensus estimate, while revenue slid 2.8% year-over-year to $23.85 billion, missing expectations of $24.35 billion by 2.06%. The headline GAAP figure of $2.27 was materially inflated by a one-time $593 million pre-tax gain from a credit card interchange fee litigation settlement, obscuring the underlying deterioration. Comparable sales fell 3.8%, with store traffic down 2.4% and average transaction size declining 1.4%, as shoppers pulled back across all five merchandise categories. Gross margin compressed to 28.2% from 28.8%, pressured by higher markdowns and rising digital fulfillment costs, a dynamic playing out broadly across retail amid tariff-driven uncertainty. Looking ahead, Target now expects a low-single digit full-year sales decline and adjusted EPS of $7.00 to $9.00, a sobering reset that signals no quick recovery.
Key Takeaways
- • Digital comparable sales grew 4.7%, with same-day delivery through Target Circle 360 up 36%
- • Key seasonal moments (Valentine's Day, Easter) outperformed non-holiday periods
- • Kate spade designer collaboration was strongest in over a decade
- • $593 million pre-tax gains from credit card interchange fee litigation settlement
- • Lower inventory shrink partially offset gross margin pressures
- • Comparable store sales declined 5.7%, traffic down 2.4%
- • Higher markdown rates and digital fulfillment costs pressured gross margin
TGT YoY Financials
Q1 2026 vs Q1 2025, source: SEC Filings
TGT Revenue by Segment
With YoY comparisons, source: SEC Filings
“In the first quarter, our team navigated a highly challenging environment and focused on delivering the outstanding assortment, experience and value guests expect from Target. While our sales fell short of our expectations, we saw several bright spots in the quarter, including healthy digital growth, led by a 36 percent increase in same-day delivery through Target Circle 360, and our strongest designer collaboration in more than a decade, kate spade for Target. While these highlights reinforce our confidence in the underlying health of our business, we're not satisfied with current performance and know we have opportunities to deliver faster progress on our roadmap for growth.”
— Brian Cornell, Q1 2026 Earnings Press Release
TGT Earnings Trends
TGT vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
TGT EPS Trend
Earnings per share: estimate vs actual
TGT Revenue Trend
Quarterly revenue: estimate vs actual
TGT Quarterly Results
4 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q4 26 BEAT FY | $2.16 | $2.44 | +12.96% | $30.45B | +0.00% |
| FY Full Year | $7.31 | $7.57 | +3.56% | $104.78B | +0.00% |
| Q3 26 BEAT | $1.71 | $1.78 | +4.21% | $25.27B | -0.07% |
| Q2 26 BEAT | $2.04 | $2.05 | +0.72% | $25.21B | +1.23% |
| Q1 26 MISS | $1.65 | $1.30 | -21.27% | $23.85B | -2.06% |