Investors waiting for a signal to buy Target (NYSE: TGT) stock got one with the fiscal Q4 2025 earnings release and 2026 guidance update. Not only were the results better than expected, but the optimistic guidance also affirmed analysts' return-to-growth forecasts while upping the ante.
Growth in 2026 will be tepid at about 2%, including comps and new stores, but better than the 1.75% consensus estimate. Additionally, management's growth forecast is likely to be cautious in hindsight. The company plans to invest in new stores, accelerate remodels, and improve its digital offerings with the help of AI, all proven techniques for boosting and accelerating growth.
