Minneapolis, March 4, 2026, 05:26 CST
- Target is adding another $2 billion in investment for 2026, bumping total planned capital spending to roughly $5 billion.
- The retailer is projecting roughly 2% growth in net sales and expects earnings per share to land between $7.50 and $8.50, following yet another quarter where comparable sales slipped.
- Shares surged roughly 7% on March 3 after the forecast. Still, analysts flagged traffic and execution as the real hurdles.
Target Corporation plans to boost capital spending by $2 billion in 2026, with money earmarked for store remodels, hiring, and technology upgrades as CEO Michael Fiddelke looks to revive growth. Capital expenditures are set to reach roughly $5 billion, covering more than 30 new store openings and over 130 full remodels this year, according to the company.
This spending push comes as a tricky juncture for U.S. retailers. Consumers are sticking with basics, yet still holding back on home and apparel—two areas that have long been central for Target.
The sales slump at Target has been tied to that imbalance, with the in-store experience taking a hit as well. Speeding up delivery and store fulfillment offers some relief, though it often means fewer staff in aisles, fitting rooms, or at the registers.
Target reported a 1.5% drop in fourth-quarter net sales to $30.45 billion. Comparable sales, which factor in locations and digital channels open for at least 13 months, slipped 2.5%. Breaking it down, store sales declined 3.9%, while digital posted a 1.9% uptick. Adjusted earnings per share landed at $2.44, stripping out certain one-offs. Looking ahead, the company expects 2026 earnings in the $7.50 to $8.50 a share range, with net sales growth “in a range around 2%.” “Target saw a healthy, positive sales increase in February,” Fiddelke said. Target Corporation
Target shares rallied nearly 7% on Tuesday, hitting a one-year high of $120.84 after the retailer posted an outlook that beat forecasts, LSEG data showed. “After the guidance cut cycle Target went through, Fiddelke is smart to keep the bar low and let execution do the talking,” said Ethan Feller, stock strategist at Zacks Investment Research. Over at RBC, analyst Steven Shemesh said Target’s team still needs to “convince the street” that its changes can help close the gap with Walmart and Amazon. Reuters
Target told investors in Minneapolis it’s putting an extra $1 billion into operating expenses—hundreds of millions earmarked for store labor, training, and new AI tools to catch trends early. The retailer plans to roll out “Target Beauty Studio” at 600 stores this fall, transitioning away from its Ulta Beauty shop-in-shops as that deal wraps up in August. “This is a new chapter, and it’s all about growth,” Fiddelke said. AP News
Target shares are up almost 25% so far in 2026, as investors seem to be backing the company’s turnaround push, Investopedia noted. After a 1.7% sales slide in fiscal 2025 and several disappointing quarters, even modest upticks in store traffic have started to matter more.
The turnaround, though, doesn’t come with a coupon. Should shoppers keep holding back on discretionary goods—or if those remodels and merchandising changes stir up more mess than “newness” right away—fresh spending might eat into short-term profits and push patience to the limit.
Target is making a play that tidier stores, more curated products, and speedier order fulfillment will win back shoppers—and keep them from drifting to cheaper competitors. The coming months should reveal if February’s sales uptick was just a one-off or marks the beginning of a steadier trend.
