Target (NYSE:TGT) Releases FY 2026 Earnings Guidance

Target (NYSE:TGT) issued an update on its FY 2026 earnings guidance on Wednesday. The company provided EPS guidance of 9.900-10.900 for the period, compared to the consensus EPS estimate of 7.720. The company issued revenue guidance of $110.0 billion-$110.0 billion, compared to the consensus revenue estimate of $106.4 billion.

Analysts Set New Price Targets

A number of analysts recently issued reports on the stock. Royal Bank Of Canada increased their price target on shares of Target from $166.00 to $178.00 and gave the stock an “outperform” rating in a report on Thursday. Morgan Stanley reiterated an “overweight” rating on shares of Target in a research report on Thursday. Jefferies Financial Group increased their target price on shares of Target from $161.00 to $177.00 and gave the stock a “buy” rating in a research note on Friday, August 14th. Freedom Capital cut Target from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, May 20th. Finally, Mizuho set a $150.00 price target on Target in a research note on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating, seventeen have assigned a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat.com, Target has a consensus rating of “Hold” and an average price target of $159.52.

Target Trading Down 0.6%

Shares of TGT stock opened at $158.04 on Friday. The company has a current ratio of 0.99, a quick ratio of 0.30 and a debt-to-equity ratio of 0.80. The stock has a market cap of $71.78 billion, a price-to-earnings ratio of 16.41, a PEG ratio of 2.09 and a beta of 0.97. The company’s 50-day moving average price is $140.21 and its 200-day moving average price is $127.75. Target has a twelve month low of $83.44 and a twelve month high of $161.98.

Target (NYSE:TGT) last announced its earnings results on Wednesday, August 19th. The retailer reported $4.11 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.35 by $1.76. Target had a return on equity of 23.23% and a net margin of 4.08%.The company had revenue of $26.54 billion for the quarter, compared to analyst estimates of $26.13 billion. During the same quarter in the previous year, the company earned $2.05 earnings per share. The firm’s quarterly revenue was up 5.3% compared to the same quarter last year. Target has set its FY 2026 guidance at 9.900-10.900 EPS. As a group, equities analysts predict that Target will post 10.4 earnings per share for the current year.

Target Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, September 1st. Investors of record on Wednesday, August 12th will be issued a dividend of $1.16 per share. This is an increase from Target’s previous quarterly dividend of $1.14. This represents a $4.64 dividend on an annualized basis and a dividend yield of 2.9%. The ex-dividend date of this dividend is Wednesday, August 12th. Target’s dividend payout ratio is 61.29%.

Insider Activity at Target

In other news, insider Cara A. Sylvester sold 10,000 shares of the stock in a transaction that occurred on Friday, May 29th. The stock was sold at an average price of $125.89, for a total transaction of $1,258,900.00. Following the completion of the transaction, the insider directly owned 45,930 shares of the company’s stock, valued at approximately $5,782,127.70. This represents a 17.88% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. Company insiders own 0.13% of the company’s stock.

Key Headlines Impacting Target

Here are the key news stories impacting Target this week:

• Positive Sentiment: Q2 earnings and sales beat expectations. Target reported $26.54 billion in revenue, up 5.3% year over year and above the $26.13 billion consensus estimate. Reported EPS was $4.11 versus expectations of $2.35, while adjusted EPS was reported by some analysts at $2.46 versus a $2.30 estimate. Target Q2 earnings report
• Positive Sentiment: Consumer engagement improved. Guest traffic increased 3.6%, comparable sales rose 3.8%, and digital activity—including traffic from artificial-intelligence platforms—helped support stronger sales. Management also cited merchandising resets and improved execution as evidence that its turnaround is gaining traction. Target traffic and sales article
• Positive Sentiment: Target raised its fiscal 2026 guidance. The company increased its sales and earnings outlook, with current guidance calling for EPS of $9.90 to $10.90. Several analysts followed with higher price targets: RBC raised its target to $178 and maintained an outperform rating, while Citigroup and TD Cowen lifted targets to $160 but retained neutral or hold ratings.
• Neutral Sentiment: Analyst opinion remains mixed. The higher targets indicate improving confidence in the turnaround, but neutral, hold and sector-weight ratings suggest Wall Street believes much of the recovery may already be reflected in the shares.
• Negative Sentiment: Profit gains were partly boosted by a one-time benefit. A roughly $994 million tariff refund significantly increased quarterly profitability, raising questions about how sustainable the EPS improvement will be once that benefit fades. Target tariff refund analysis
• Negative Sentiment: Valuation and execution risks could limit further upside. With shares near their annual high and trading at approximately 16.4 times earnings, investors may demand continued sales, traffic and margin improvement. The elevated valuation leaves less room for disappointment if the turnaround loses momentum.

Hedge Funds Weigh In On Target

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. State Street Corp grew its holdings in shares of Target by 2.5% during the third quarter. State Street Corp now owns 37,648,065 shares of the retailer’s stock worth $3,377,031,000 after buying an additional 911,964 shares in the last quarter. Charles Schwab Investment Management Inc. boosted its holdings in Target by 3.4% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 17,065,926 shares of the retailer’s stock valued at $1,668,194,000 after acquiring an additional 561,898 shares during the last quarter. Invesco Ltd. increased its position in Target by 21.1% during the 4th quarter. Invesco Ltd. now owns 4,734,609 shares of the retailer’s stock worth $462,808,000 after purchasing an additional 824,446 shares in the last quarter. Ameriprise Financial Inc. raised its stake in shares of Target by 17.1% in the 2nd quarter. Ameriprise Financial Inc. now owns 3,162,050 shares of the retailer’s stock valued at $311,911,000 after acquiring an additional 461,495 shares during the period. Finally, AQR Capital Management LLC raised its position in Target by 243.8% in the fourth quarter. AQR Capital Management LLC now owns 2,870,210 shares of the retailer’s stock valued at $280,563,000 after purchasing an additional 2,035,298 shares during the period. Institutional investors and hedge funds own 79.73% of the company’s stock.

About Target

Target Corporation (NYSE: TGT) is a U.S.-based general merchandise retailer headquartered in Minneapolis, Minnesota. The company operates a network of full-line and small-format stores across the United States alongside a national e-commerce platform and mobile app. Target’s retail assortment spans apparel, home goods, electronics, groceries and household essentials, plus beauty, baby and pet categories. The firm complements national brands with a portfolio of owned and exclusive labels and partnerships that help differentiate its merchandise assortment.

Target traces its roots to the Dayton Company, founded by George Dayton in 1902; the Target discount chain was launched in 1962 and the parent company later adopted the Target Corporation name.