Reports Q1 $1.71 v $1.37e, Rev $25.4B v $24.5Be; Total SSS +5.6% y/y v +1.9%e; Raises FY27 Rev outlook
Wednesday, May 20, 2026 6:30:11 AMEST
- No Q2 guidance
- Adjusts FY27 higher-end $7.50-8.50 v $8.05e, Raises Rev +4%, Affirms Op margin +20bps v 4.6% y/y (prior: $7.50-8.50, Rev +2%, Op margin +20bps v 4.6% y/y)
- Affirms to grow net sales in every quarter of the year
- Comp Sales +5.6% y/y v +1.9%e; Net sales in all six core merchandising categories were higher y/y; Topline strength was broad-based across merchandise categories, sales channels and across the quarter.
- Non-merchandise sales grew +25%, reflecting strong growth in Roundel ad revenue, Target Circle 360 membership revenue, and the Target+ marketplace.
- Digital SSS +8.9% y/y
- Comparable number of transactions (traffic) +4.4% y/y
- Comparable average transaction amount +1.1% y/y
- Gross margin 29.0% v 28.2% y/y
- Op margin 4.5% v 6.2% y/y
- ROIC trailing twelve months 12.4% v 15.1% y/y
- Inventory $12.3B v $13.0B y/y
- CEO: "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. "While we're pleased with our Q1 performance, our focus remains on building consistent, long-term growth, and we recognize there is much more work in front of us. As we look ahead, we're focused on staying disciplined and flexible in an uncertain operating environment and continuing to invest boldly in our team, capabilities, and an elevated guest experience to unlock our full potential over time."
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- Adjusts FY27 higher-end $7.50-8.50 v $8.05e, Raises Rev +4%, Affirms Op margin +20bps v 4.6% y/y (prior: $7.50-8.50, Rev +2%, Op margin +20bps v 4.6% y/y)
- Affirms to grow net sales in every quarter of the year
- Comp Sales +5.6% y/y v +1.9%e; Net sales in all six core merchandising categories were higher y/y; Topline strength was broad-based across merchandise categories, sales channels and across the quarter.
- Non-merchandise sales grew +25%, reflecting strong growth in Roundel ad revenue, Target Circle 360 membership revenue, and the Target+ marketplace.
- Digital SSS +8.9% y/y
- Comparable number of transactions (traffic) +4.4% y/y
- Comparable average transaction amount +1.1% y/y
- Gross margin 29.0% v 28.2% y/y
- Op margin 4.5% v 6.2% y/y
- ROIC trailing twelve months 12.4% v 15.1% y/y
- Inventory $12.3B v $13.0B y/y
- CEO: "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. "While we're pleased with our Q1 performance, our focus remains on building consistent, long-term growth, and we recognize there is much more work in front of us. As we look ahead, we're focused on staying disciplined and flexible in an uncertain operating environment and continuing to invest boldly in our team, capabilities, and an elevated guest experience to unlock our full potential over time."