Target (TGT) Q1 FY2026 Sales Rise 6.7% to $25.4B on Strong Digital and Traffic Growth

Target Corporation (NYSE: TGT ) is one of the most undervalued quality stocks to invest in . On May 20, Target reported its Q1 2026 financial results, with net sales rising 6.7% year over year to $25.4 billion. Growth was broad-based across merchandise categories and channels, with comparable traffic increasing 4.4% and digital comparable sales rising 8.9%, driven in part by strong same-day delivery performance through Target Circle 360.

Non-merchandise revenue also showed strong momentum, increasing nearly 25% due to growth in advertising (Roundel), membership revenue, and the Target+ marketplace. The company reported GAAP and adjusted EPS of $1.71, alongside a 22.9% decline in operating income on a GAAP basis but a 29.1% increase on an adjusted basis, reflecting mixed margin dynamics.

Target Corporation (NYSE:TGT) said gross margin improved year over year due to supply chain productivity gains, stronger advertising revenue, and lower markdown rates, although higher product costs and increased operating expenses weighed on profitability. The company also raised its 2026 outlook, expecting around 4% full-year net sales growth, improved operating margins, and EPS near the upper end of its prior guidance range.

Target Corporation (NYSE:TGT) is a general merchandise retailer that sells products through its stores and digital channels. The company offers guests a range of differentiated merchandise and everyday essentials at discounted prices.

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