Target's Turnaround Faces Margin Test in Q2 Report

Earnings

โดย Insider Monkey·

Summary · why it matters

Target Corporation enters its fiscal second-quarter report with shares up significantly in 2026, but the central test is whether its turnaround can start producing margin growth. Consensus estimates call for revenue to increase 3.5% to $26.09 billion, adjusted earnings to rise 14% to $2.34 per share, and comparable sales to grow 2.4%. In the first quarter, net sales increased 6.7%, comparable sales rose 5.6%, and traffic grew 4.4%, with adjusted operating margin improving to 4.5% from 3.7%. However, the adjusted SG&A expense rate increased to 21.9% from 21.7%, and management plans approximately $5 billion of capital expenditures and $1 billion of incremental operating investment during 2026, which could absorb gross-margin gains. Insider Monkey's hedge fund database shows 68 hedge funds held positions in Target at the end of the first quarter of 2026, up from 58 funds the prior quarter.

Target Corporation ±