Target posts biggest sales jump in four years, raises 2026 outlook

Target’s turnaround finally showed up in the numbers. The Minneapolis retailer said first-quarter net sales rose 6.7% to $25.4 billion, comparable sales climbed 5.6%, and traffic increased 4.4% from a year earlier, giving the company its first positive same-store sales result in five quarters.

The improvement looked broad, not isolated. Target said sales rose in all six core merchandising categories, while digital comparable sales increased 8.9% and same-day delivery grew more than 27% as more guests used Target Circle 360. Non-merchandise sales added another lift, rising nearly 25% on growth in Roundel ad revenue, Target Circle 360 membership revenue and the Target+ marketplace. For store teams, that points to a business being pushed by more than just one strong aisle or a short-term pricing move.

The company’s operational reset is also starting to show up at the building level. Target opened seven new stores in the quarter and said more than 100 remodel projects were underway, a sign that the March turnaround plan is moving off the slide deck and into stores. That plan called for about $6 billion in capital investment and $1 billion in operating investment this year, with money aimed at store staffing, marketing, technology and merchandising changes after a long sales slump.

Chief executive Michael Fiddelke said the results were stronger than expected and an early sign that Target’s clarified strategy is resonating with guests, but he also stressed that the turnaround is still in its early stages and that the company has much more work ahead. That caution matters for employees who have lived through shifting priorities, tighter labor, heavier remodels and renewed pressure to keep shelves full and stores sharp enough to match the brand Target wants to project.

The earnings beat was enough to prompt Target to lift its full-year 2026 net sales growth outlook to around 4%, two points above its prior forecast. The company said it still expects to grow sales in every quarter this year, sees operating income margin coming in more than 20 basis points above its 2025 adjusted rate of 4.6%, and expects GAAP and adjusted earnings near the high end of its $7.50 to $8.50 range. Analysts called the quarter a notable inflection point, with some saying it was Target’s strongest comparable-sales gain in about four years, but the stock still fell nearly 4% as investors weighed whether the momentum can last through tougher comparisons ahead.