Target Doubles 2026 Sales Growth Forecast to 4% as Q1 Beat Fails to Lift Shares

7 articles · Updated · Reuters · May 20

Target lifted its annual net sales growth target to about 4% from 2% after first-quarter comparable sales rose 5.6%, its first forecast increase in two years.
Q1 momentum was broad-based: all six core merchandise categories grew, digital sales climbed 8.9%, same-day deliveries jumped 27%, and adjusted EPS reached $1.71 versus $1.46 expected.
Michael Fiddelke still warned consumers remain stretched and recent sentiment has weakened, saying the company will not "swing too hard too quickly" despite the stronger quarter.
The turnaround has relied on $2 billion of extra spending, price cuts on 3,000 items and inventory improvements, but the new outlook still implies slower growth through the rest of the year.
Shares reversed early gains and fell about 6%, underscoring investor concern that fuel-cost pressure from the Iran war and fierce competition from Walmart and Amazon could curb the recovery.

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