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Target Corporation (TGT) and Walmart Inc. (WMT) reported strong earnings in their Q3 results, both surpassing expectations. Target’s Q3 EPS was $1.78, slightly above the anticipated $1.76, despite a year-over-year drop from $1.85. Sales for Target declined over 1% to $25.27 billion, missing estimates of $25.35 billion. In contrast, Walmart’s Q3 sales reached $179.49 billion, up 6% year-over-year, exceeding estimates of $177.14 billion, and its EPS rose to $0.62 from $0.58 year-over-year.
Looking ahead, Walmart raised its fiscal 2026 net sales growth guidance to 4.8%-5.1% from 3.75%-4.75%, and its operating income forecast by nearly 400 basis points to 8.5%-9.5%. Meanwhile, Target adjusted its FY26 EPS outlook down to $7.00-$8.00 from $7.00-$9.00 amid concerns about soft discretionary spending, without providing revenue guidance.
Currently, Walmart expects a 4% rise in annual earnings for FY26 and a projected 12% increase in FY27, with modest upward revisions in EPS estimates. Conversely, Target’s FY26 EPS guidance represents a 17% decline from $8.86 per share in FY25.
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