Target (TGT) Q4 2025 earnings summary

Executive summary

• Q4 2024 saw 1.5% comparable sales growth, driven by higher traffic, strong digital performance, and acceleration in discretionary categories like Apparel and Hardlines.

• Achieved nearly $30 billion sales growth and 350 million more guest trips since 2019, with digital sales now 20% of total volume and double-digit growth in Drive Up and Same-Day Delivery.

• Loyalty program Target Circle added over 13 million members in 2024, with Circle 360 membership quadrupling since launch and members spending three times more than non-members.

• Target Plus marketplace surpassed $1B GMV, up 35% year-over-year, and Roundel media business neared $2B in value with mid-teens growth.

• Over $2 billion in cost savings achieved over two years, with ongoing investments in stores, supply chain, and digital capabilities.

Financial highlights

• Q4 2024 comp sales rose 1.5% year-over-year, with digital comparable sales up 8.7% and traffic up 2.1%.

• Q4 GAAP and adjusted EPS were $2.41, near the high end of guidance; full-year EPS was $8.86.

• Q4 net sales were $30.9 billion, down 3.1% year-over-year due to one fewer week; full-year net sales were $106.6 billion, down 0.8%.

• Q4 operating income was $1.5 billion, down 21.3% year-over-year; full-year operating income was $5.6 billion.

• Q4 gross margin rate was 26.2% (down from 26.6%); full-year gross margin rate improved to 28.2% (up from 27.5%).

Outlook and guidance

• Target expects more than $15B in revenue growth over the next five years, with low to mid-single digit annual top-line growth.

• 2025 net sales projected to grow around 1%, with flat comparable sales and a modest operating margin rate increase.

• 2025 adjusted EPS guidance: $8.80–$9.80; effective tax rate expected at 23–24%.

• CapEx planned at $4–$5B, focused on stores, supply chain, and technology.

• Q1 2025 expected to face profit pressure due to soft February sales, weather impacts, and tariff uncertainty.