The bulls have returned to Target’s (TGT) stock in a big way this year on hopes for a turnaround under new CEO Michael Fiddelke.
That upbeat thesis — which has powered shares up 59% this year — is about to be put to the test later this week when the company reports second quarter earnings
But even if Target delivers on the quarter and raises its full-year profit guidance as expected, it may not be enough to keep the stock price charging higher. “Investor expectations are very elevated into Target’s second quarter print, but we believe the more important debate is whether improving store and merchandising execution supports confidence in growth durability in FY27 and beyond,” Deutsche Bank analyst Krisztina Katai said. Target is expected to post a second quarter comparable sales increase of 2.3% and earnings of $2.29. Comparable sales fell 1.5% in last year’s second quarter amid a host of merchandising execution issues.
Earnings came in at $2.05. Since the start of 2026, however, Target has moved quickly to rewrite its merchandising wrongs. It has expanded wellness offerings, added 3,000 beauty products across 60 new brands, reset 75% of home decorative accessories, accelerated food and beverage innovation, and introduced a back-to-school assortment that is more than 50% new, Jefferies analyst Corey Tarlowe pointed out.