1Q Comps Accelerate to +5.6% As Momentum Improves...

Research evidence excerpt

1Q Comps Accelerate to +5.6% As Momentum Improves...

Broadlines & Hardlines

Mass Merchants - Market Weight

TARGET CORPORATION (TGT) May 20, 2026

1Q Comps Accelerate to +5.6% As Momentum Improves... Rating:

Peer Perform

The Wolfe Byte Price: $127.24

Target's 1Q results came in ahead of expectations, with +5.6% SSS and strong Price Target:

flow-through. The team is now expecting to get to the 'high-end' of the EPS range NA

(in-line with our preview). 1Q checked all the key boxes this morning, and we View TGT Model

expect a positive reaction today. View Comp Table

Company Information

Looking past 1Q, the sustainability of the momentum remains the biggest 52-Week Range $84 - $132

Market Cap. (MM) $57,789

question, but the shelf resets, improved store execution, and leadership changes Enterprise Value (MM) $72,773

all remain important catalysts for unlocking the real earnings power at Target. Shares Out. (MM) 454.2

Avg. Value Traded (MM) $455.55

(+) 1Q26 Results Beat Elevated Buy-Side Expectations. SSS were up +5.6% vs SI% of Float 3.4%

consensus at +2.3% and accelerated by +270bps on a 2-year basis. SSS results were Price Performance

driven by a transaction up +4.4% (vs consensus at +1.0%) and ticket of +1.1% (vs YTD LTM

consensus at +1.4%). Gross margins beat expectations at 29.0% vs the Street at TGT 29% 34%

28.7% (one of the concerns into 1Q), driven by supply chain productivity, advertising S&P 500 7% 31%

growth, and lower markdowns, partially offset by higher product costs. Adj EBIT 140

margins came in at 4.5%, 70bps ahead of expectations. Adj EPS of $1.71 beat the 130

120Street at $1.45.

(+) 2026 EPS Outlook Points To 'High End' Of $7.50 to $8.50... Target expects net 100

sales growth of ~4% vs ~2% prior, and 180bps ahead of consensus for +2.2%. While 90