Target (TGT) Q4 2025 earnings summary

Executive summary

• Q4 comparable sales grew 1.5%, led by strong digital and traffic performance, with notable acceleration in Apparel and Hardlines compared to Q3.

• Emphasized investments in stores, supply chain, technology, and digital to enhance guest experience and operational efficiency.

• Over 13 million new Target Circle members joined in 2024, spending three times more than non-members.

• Ongoing efficiency efforts resulted in over $2 billion in cost savings over the last two years.

• Outlined a differentiated retail strategy focused on discovery, delight, and a unique blend of product and experience, aiming to drive $15B+ revenue growth over five years.

Financial highlights

• 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 comparable sales increased 1.5%, exceeding initial guidance; Q4 GAAP and adjusted EPS reached $2.41, near the high end of guidance.

• Digital comparable sales grew 8.7% year-over-year, with over 25% growth in same-day delivery.

• Target Plus marketplace grew over 35% in GMV, surpassing $1B, with strong Q4 acceleration.

• Roundel media business generated nearly $2B in value, growing in the mid-teens.

Outlook and guidance

• Target expects to deliver $15B+ in sales growth over the next five years, driven by share gains across categories.

• 2025 net sales expected to grow around 1%, with comparable sales around flat.

• 2025 adjusted EPS guidance: $8.80–$9.80; modest operating margin rate increase planned.

• CapEx for 2025 projected 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.