Target (TGT) Beats Q3 Earnings Estimates

Core Insights - Target (TGT) reported quarterly earnings of $1.78 per share, exceeding the Zacks Consensus Estimate of $1.76 per share, but down from $1.85 per share a year ago, indicating an earnings surprise of +1.14% [1] - The company posted revenues of $25.27 billion for the quarter ended October 2025, missing the Zacks Consensus Estimate by 0.36% and down from $25.67 billion year-over-year [2] - Target shares have declined approximately 34.5% year-to-date, contrasting with the S&P 500's gain of 12.5% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $2.23 on revenues of $30.61 billion, and for the current fiscal year, it is $7.32 on revenues of $105 billion [7] - The estimate revisions trend for Target was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, suggesting performance in line with the market in the near future [6] Industry Context - The Retail - Discount Stores industry, to which Target belongs, is currently ranked in the top 37% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]