Target's New CEO Says He's Focused on Growth. The Stock Is Surging.

ETHReserveBank · 2026-03-06T23:13:42+00:00

Target's stock surged after better-than-expected earnings and positive sales growth forecasts from new CEO Michael Fiddelke. He aims to revamp product selection and store designs, projecting a 2% sales increase for the year.

ETHReserveBank

2026-03-06 23:13:42

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Key Takeaways

Target shares jumped Tuesday after the retailer reported earnings that topped analysts’ estimates and gave a rosy outlook.
New CEO Michael Fiddelke, who took the helm last month, forecast a return to sales growth this year.

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Target’s stock soared Tuesday after the retailer posted better-than-expected earnings and its new CEO pledged a return to sales growth.

CEO Michael Fiddelke, who took the helm last month, told investors the company plans a number of changes to “get Target back to growth,” including improving its selection of products and redesigning stores for a better shopping experience. Target said it expects sales to rise 2% this year, after recording a 1.7% drop to $104.78 billion in 2025.

Shares of Target (TGT) jumped nearly 7% to just under $121 Tuesday, making it one of the best-performing stocks in the S&P 500 on a day when the broader markets lost ground.

Why This Is Significant

Tuesday’s stock gains could could be taken as an encouraging signal for sentiment around Fiddelke’s leadership and Target’s business, which has struggled with a slide in sales.

The retailer reported adjusted earnings of $2.44 per share for the fourth quarter, up 1.5% from a year earlier. Analysts polled by Visible Alpha had expected a decline. Net sales of $30.45 billion were down 1.5% year-over-year, roughly in line with expectations.

Fiddelke said the company “saw a healthy, positive sales increase in February, serving as an important milestone on our path back to growth this year, and reinforcing my confidence in the momentum we’re building and the future we’re creating together.”

For fiscal 2026, Target said it expects adjusted EPS of $7.50 to $8.00, with the midpoint above the $7.66 analysts called for. Its current-quarter adjusted earnings forecast of “flat to up slightly” from $1.30 a year ago was below the consensus.

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With today’s gains, Target shares have added nearly one-quarter of their value since the start of the year.

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