Shares of Target (TGT) dropped more than 2% in pre-market trading on Wednesday after the retailer lowered its fiscal-year earnings guidance, following its fourth consecutive quarter of declining sales. The company lowered its full-year profit forecast to $7–$8 per share, down from the previous range of $7–$9. Meanwhile, Target reported fiscal Q3 adjusted earnings of $1.78 per share, beating analysts’ estimate of $1.71.
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For context, Target offers a wide range of groceries, apparel, electronics, and home goods, known for its affordable pricing and curated shopping experience.
Target’s Q3 Performance
In the fiscal third quarter, Target reported sales of $25.3 billion, roughly matching Wall Street estimates but down 1.5% from a year ago. Meanwhile, comparable sales fell 2.7% year-over-year, steeper than the 2.1% decline analysts had expected.
The company noted that consumers remain cautious on discretionary spending, including home decor and apparel. Incoming CEO Michael Fiddelke added that Q3 was volatile due to factors like the SNAP funding pause and the government shutdown. Notably, Target announced in August that Fiddelke will succeed CEO Brian Cornell in February 2026.
Looking ahead, Target expects weak sales to persist into the fourth quarter, forecasting a low single-digit decline. The company will provide more guidance on future sales after the holiday shopping season.
Target Plans $1B Investment Boost
Alongside its financial results, Target announced plans to invest an additional $1 billion next year, bringing total new investment to $5 billion.
Fiddelke said the funds will be used to improve the in-store experience, offer more appealing products, and upgrade technology and e-commerce systems. These changes come as shoppers have raised concerns about messy stores, missing items on shelves, and less exciting merchandise.
Is TGT Stock a Buy, Sell, or Hold?
Wall Street has a Hold consensus rating on Target stock based on 13 Holds, eight Buys, and four Sell recommendations. The average TGT stock price target of $102.41 indicates about 16% upside potential from current levels.
These ratings and price targets will likely change as analysts update their coverage following today’s earnings report.
