Target Corporation exceeded Wall Street expectations with its annual sales and profit forecasts as new CEO Michael Fiddelke implements store renovations and digital improvements. The Minneapolis-based retailer reported positive sales growth in February after struggling with declining discretionary spending. Target expects 2026 net sales to grow 2% and earnings per share between $7.50-$8.50.
Target Corporation surpassed Wall Street predictions Tuesday with its annual revenue and earnings projections, as the retail giant enters a new chapter under CEO Michael Fiddelke’s leadership, emphasizing store renovations and enhanced digital operations.
The Minneapolis-headquartered company’s stock jumped 4% in pre-market trading, though shares have declined over the past four consecutive years, underperforming competitors like Walmart.
The retailer has historically depended on non-essential merchandise including clothing and home goods for approximately 30% of yearly revenue, but this segment has consistently underperformed as economic uncertainty causes consumers to reduce discretionary purchases.
With Michael Fiddelke now at the helm, Target is prioritizing improved product selection, competitive pricing strategies, and enhanced in-store experiences to attract customers back to their locations.
“Target saw a healthy, positive sales increase in February, serving as an important milestone on our path back to growth this year, and reinforcing my confidence in the momentum we’re building and the future we’re creating together,” Fiddelke said.
The corporation anticipates 2026 net revenue growth of 2%, surpassing analyst predictions of 1.76% according to LSEG data.
Target forecasts annual earnings per share between $7.50 and $8.50, significantly higher than analyst estimates of $7.67 per share.
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