Target Corp Top-Line Trends Inflected to Positive in 1Q

Target's 1Q results showed a surprise return to positive same-store sales growth, prompting a FY26 guidance raise. However, Goldman Sachs maintains a Neutral rating due to concerns regarding difficult 2Q comparisons and long-term earnings sustainability.

Key Takeaways

• 1.Target's top-line trends turned positive in 1Q with a same-store sales (SSS) increase of 5.6%, significantly exceeding the consensus of +2.5%.
• 2.Management raised FY26 guidance for net sales growth to approximately +4% and increased EPS expectations toward the high end of the $7.50-8.50 range.
• 3.Despite the 1Q beat, 2Q faces significant headwinds including a tough comparison against last year's Nintendo Switch 2 launch and fading tax refund benefits.

Table of Contents

• Key Takeaways
• GS Forecast
• GS Factor Profile
• Ratios & Valuation
• Growth & Margins (%)
• Industry metrics
• Estimate changes
• Valuation & Risks
• Disclosure Appendix

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