Shares of Target Corp rose roughly 4% to $117.50 in premarket trading on Tuesday after the retailer released an annual same-store sales forecast that exceeded Wall Street expectations.
The Minneapolis-based chain forecast net sales growth of 2% for 2026 compared with 2025, a figure that outpaced the analyst consensus of 1.76% compiled by LSEG. In explaining the outlook, Target pointed to expected demand across categories including apparel and said it expects benefits from recent cost savings efforts as well as its advertising business.
For the full fiscal year, the company provided an earnings per share range of $7.50 to $8.50, which sits above the consensus estimate of $7.68 per share. The wider range reflects the company's formal guidance for the period and was released alongside other quarterly results.
In the fourth quarter, Target reported earnings per share of $2.44, beating analyst estimates of $2.16. Quarterly revenue was $30.45 billion, a hair below the $30.48 billion forecast by analysts.
Context and market reaction
Investors responded to the stronger-than-expected annual same-store sales forecast and the above-consensus EPS guidance with a premarket bid for the stock. Management attributed the improved outlook to both category-level demand - specifically apparel - and to structural improvements such as cost savings programs and the performance of the company’s advertising platform.
What the numbers show
- 2026 net sales growth guidance: 2% versus 2025
- Analyst consensus for 2026 net sales growth: 1.76% (LSEG)
- Full-year EPS guidance: $7.50 to $8.50; consensus EPS: $7.68
- Q4 EPS: $2.44; analyst estimate: $2.16
- Q4 revenue: $30.45 billion; analyst estimate: $30.48 billion
The combination of an EPS beat for the quarter and guidance that exceeds consensus appears to have been the primary driver of the premarket share move.
Summary
Target’s updated 2026 sales outlook and full-year EPS guidance, supported by management commentary on apparel demand and cost and advertising initiatives, prompted an immediate positive reaction in premarket trading. While quarterly revenue missed estimates by a small margin, the earnings beat and stronger forward guidance were sufficient to boost investor sentiment.