Target to report earnings before the bell; here’s what to expect

• Wall Street expects earnings per share of unspecified amount and revenue of $26.14 billion for the fiscal second quarter
• Target posted its first positive same-store sales in five quarters last quarter, jumping 5.6%, and raised full-year revenue guidance while maintaining a 'cautious' outlook
• Deutsche Bank analysts remain 'sidelined' pending more evidence of sustainable market share gains and growth durability beyond fiscal 2027

Target Earnings Preview: Turnaround Progress Under Scrutiny

Key Expectations:

Target is scheduled to report fiscal second-quarter results Wednesday morning, with analysts expecting earnings per share and revenue of $26.14 billion (based on LSEG survey). The company will host a conference call with analysts at 8 a.m. ET.

Recent Performance:

Target's stock has surged over 55% year-to-date, though investor sentiment remains cautious. Last quarter marked a significant milestone with the company's first positive same-store sales in five quarters, jumping 5.6%. However, this follows years of stagnant performance, with annual revenue remaining roughly flat for four years.

Management Outlook:

CEO Michael Fiddelke raised full-year revenue guidance last quarter but maintained a "cautious" outlook amid ongoing market uncertainty. The company is focused on improving inventory management, product selection, and sales strategy to drive sustainable growth. Fiddelke emphasized in May that the company's "work is just beginning."

Analyst Perspective:

Wall Street remains skeptical about the durability of Target's turnaround. Deutsche Bank Research analysts stated they "remain sidelined" until they see more evidence of sustainable market share gains. The key debate centers on whether improved store execution and merchandising will support confidence in growth durability through fiscal year 2027 and beyond.

Market Context:

The earnings report comes as many consumers continue to reduce spending due to challenging macroeconomic conditions, making Target's ability to attract its core customer base critical for sustained recovery.