Target delivered its strongest quarterly sales performance since early 2022, and new CEO Michael Fiddelke is front and center in the narrative as the retailer reports a notable rebound for the quarter ending May 2, 2026. The company posted a 5.6% gain in comparable sales and first-quarter net sales of $25.44 billion, while the turnaround plan and historical context involving former CEO Brian Cornell and reporting by Nick Halter help explain how Target landed here. This piece walks through the numbers, the $6 billion overhaul that management says is driving results, and the questions investors will keep asking next.
Shoppers turned out this spring in a way that surprised skeptics, and that uptick translated into a clear lift in comparable sales, which measure purchases at stores and online locations open at least a year. Comparable sales rose 5.6% for the three months ending May 2, 2026, marking the retailer’s best quarterly gain since early 2022 and breaking a streak of three straight negative quarters. That jump is the headline investors wanted to see, because traffic and basket size are the building blocks of any comeback.
Target reported first-quarter net sales of $25.44 billion, a 6.7% increase from the prior year and a result that beat what analysts were expecting on the top line. Net earnings were $781 million, or $1.71 per share, down from $1.04 billion, or $2.27 per share, a year earlier, reflecting margin pressures and the heavy investment the company is making to reset its assortment and store experience. Even with profit softness, the sales momentum was enough to make investors favor the company’s trajectory over a single-quarter earnings comparison.
Management moved quickly to lift full-year guidance after the report, now projecting net sales growth of about 4% for the year instead of the earlier 2% estimate, a change that signals confidence in sustaining at least part of the spring momentum. Target now projects annual sales around $108.97 billion, which nudges expectations above the consensus that had hovered near $107.15 billion. For earnings, the company expects per-share results to land close to the high end of a $7.50 to $8.50 range, keeping the street’s $8.12 estimate firmly in view as a benchmark.
Fiddelke, who became CEO in February, framed the quarter as early validation of an ambitious turnaround strategy, and executives pointed to growth across all six of Target’s main merchandising categories as evidence the plan is beginning to work. Home goods and apparel drew particular attention, since those areas had been sources of weakness that stripped shoppers away from Target’s core value proposition. Fiddelke described the company as “guardedly optimistic” about the progress being made, using measured language that still left room for the tough work ahead.
The overhaul is substantial, not a cosmetic fix, and includes a $6 billion program to remodel stores, add staffing and training, and rebuild Target’s reputation for affordable, on-trend clothing and home products. Executives say about 75% of decorative home accessories will be new this year, a deliberate effort to refresh the look and give shoppers reasons to return. Those sorts of assortment moves are costly up front but can change customer perceptions quickly when executed well.
Target’s recent past was noisy and publicly visible, with Brian Cornell’s tenure spanning both expansion and controversy, and coverage by reporters like Nick Halter documenting the company’s ups and downs. The retailer also weathered protests and boycotts tied to changes in diversity, equity and inclusion policies, events executives concede had tangible effects on sales and brand trust. Rebuilding that trust is part message work and part product and price discipline, and management says both elements are getting attention.
Tactical changes now focus on clearer value messaging and tighter assortment decisions designed to win back share in apparel and home, where pricing, trend relevance and inventory choices quickly shape shopper sentiment. Executives are trying to make it easier for customers to find stylish, affordable options from a brand they already know, which means faster product turnover and sharper buys. Those efforts will have to show up in comp performance across more quarters to convince skeptics.
Investors and analysts will be scrutinizing margins, inventory control and execution as much as topline gains, because the scale of the $6 billion plan introduces execution risk alongside the potential upside. There are real headwinds, from cautious consumers to intense price competition from rivals, and Target must prove it can spend wisely and move the needle on trend-driven categories at scale. Whether the refreshed assortments, remodels and merchandising discipline translate into sustained recovery will be the practical test that determines how durable this rebound becomes.
