Shares of Target Corporation (NYSE: TGT) were down 3% on Monday. The stock has jumped 33% in the past three months. The retailer is scheduled to report its earnings results for the fourth quarter of 2025 on Tuesday, March 3, before market open. Here’s a look at what to expect from the earnings report:
Revenue
Target has guided for a low-single-digit decline in sales for the fourth quarter of 2025. Analysts are projecting revenue of $30.5 billion, which indicates a 1% decline from the prior-year period. In the third quarter of 2025, net sales dropped 1.5% year-over-year to $25.3 billion.
Earnings
The consensus target for earnings per share in Q4 2025 is $2.16, which implies a 10% decrease from the year-ago quarter. In Q3 2025, adjusted EPS decreased 4% YoY to $1.78.
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Points to note
Target expects a low single-digit decline in comparable sales for the fourth quarter of 2025. In Q3, comparable sales were down 2.7%, with a decline in store sales partly offset by an increase in digital sales.
Target continues to operate in a challenging consumer environment with discretionary categories experiencing softness. However the company may have benefited from gains during the holiday season due to investments in its stores and assortment which give it a boost during seasonal events.
The retailer continues to work on offering a broad range of products at affordable prices and it continues to invest in improving the shopping experience of customers by offering convenient delivery and fulfilment options. In Q3, it saw a 35% growth in same-day delivery. TGT is likely to have benefited from continued strength in food and essentials categories, with a particular boost from holiday season specials.
Target continues to invest in technology to improve its customer experience. Its use of AI-powered tools to provide personalized offers, suitable pricing and convenient delivery options are likely to yield benefits. However, higher costs and heavier discounts are weighing on its bottom line. It also continues to face headwinds such as a difficult economic environment and tough competition.