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Jan 31
Target Q4 2025 Earnings Report
Target reported lower fourth quarter 2025 sales and earnings, with margin expansion and growth in digital and advertising revenues.
Key Takeaways
Target delivered Q4 net sales of $30.45 billion, down 1.5% year-over-year, with comparable sales declining 2.5%. Gross margin expanded to 26.6%, while GAAP EPS came in at $2.30 and Adjusted EPS at $2.44.
Net sales decreased 1.5% year-over-year to $30.45 billion.
Comparable sales declined 2.5%, driven by lower store traffic.
Gross margin rate expanded to 26.6% from 26.2%.
Adjusted EPS of $2.44 was slightly above last year.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
For 2026, Target expects net sales growth around 2%, operating margin approximately 20 basis points higher than 2025 adjusted margin, and GAAP and Adjusted EPS between $7.50 and $8.50.
Positive Outlook
- Net sales growth expected around 2% in 2026.
- Growth expected in every quarter of 2026.
- Operating margin projected approximately 20 basis points higher.
- Comparable sales expected to increase slightly.
- EPS guidance range of $7.50 to $8.50.
Challenges Ahead
- Guidance assumes modest comparable sales growth.
- Operating margin recovery remains limited.
- Exposure to macroeconomic uncertainty.
- Potential cost pressures impacting margins.
- EPS range reflects ongoing business transformation costs.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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