Target reported fourth quarter 2025 net sales of $30.5 billion, a 1.5% decrease year-over-year, and Adjusted EPS of $2.44. For the full year, net sales fell 1.7% to $104.8 billion with Adjusted EPS of $7.57.
Key Highlights
- Comparable sales for the fourth quarter declined 2.5%, which was a smaller drop than analyst expectations of a 2.8% decrease, though store-originated comparable sales fell 3.9%.
- Comparable digital sales provided a bright spot, growing 1.9% during the quarter, with same-day delivery services expanding by over 30%.
- The company's gross margin rate expanded to 26.6% from 26.2% in the prior year, attributed to lower inventory shrink and reduced supply chain and digital fulfillment costs.
- For full-year 2026, Target guided for net sales growth around 2% and Adjusted EPS in the range of $7.50 to $8.50.