We’re putting style, design and value at the center of everything we do. And four clear priorities are guiding strategic choices aimed at delighting guests and driving profitable growth in 2026 and beyond.
Priorities guiding our path forward
Lead with merchandising authority
by setting trends with differentiated, culturally relevant assortments that win in style, design and value.
Accelerate technology
to help teams move faster and create more personalized, joyful experiences for guests.
Elevate the guest experience
by investing in digital discovery and the in-store experience while strengthening loyalty and engagement.
Strengthen team and communities
by investing in training and career growth for teams and building on Target’s long-standing commitment to communities.
incremental investment expected in 2026
$1 billion+ increase in capital expenditures
$1 billion incremental operating investments
Investing to accelerate growth
In 2026, Target plans a $1 billion operating investment to deliver a more consistent, elevated guest experience.
Transforming our stores
Largest store transformation in a decade, including refreshed assortments, floor plans and visual displays.
Store payroll and training
Hundreds of millions of dollars in additional payroll and training to support teams and improve consistency.
Discovery and personalization
Increased spend on brand marketing and new technology, including AI, to improve discovery and personalization.
Planning more than $1 billion in additional CapEx
Over 30 new stores
More than 130 full-store remodels
Investments in supply chain and technology
Elevating key categories
We’re strengthening and evolving the assortment in key categories where Target’s differentiated offerings position us to win with consumers.
Health and wellness
- Strengthen Target’s position as a destination for everyday wellbeing by building on the 30% wellness assortment expansion announced in January.
- Add thousands of new items and more exclusives, and increase vitamin and nutrition offerings by about 20% chainwide in April.
Home
- Refresh the home experience with more new items and improved in-store displays.
- Relaunch Threshold this summer, plus shop-in-shops in 200 stores highlighting seasonal looks and on-trend décor.
Beauty
- Invest in beauty’s next chapter with more premium and emerging brands, updated presentation and an enhanced service model pilot.
- Introduce Target Beauty Studio later this year, featuring an immersive destination pairing specialty-level presentation and service with Target’s signature accessibility.
Women’s style
- Maximize our in-house design capabilities and trend-tracking technology to bring new styles to consumers faster.
- Lead with great denim and everyday essentials, with seasonal styles and frequent partnerships driving year-round newness.
Baby
- Elevate the shopping experience with new product displays that inspire discovery and make it easier to find and gift essentials.
- Expand our owned-brand Cloud Island assortment and introduce a premium baby boutique featuring partnerships with UPPAbaby, Bugaboo, Doona and Stokke.
Food and beverage
- Further infuse style and design throughout the grocery experience while allocating more space for this category as we build new stores and remodel existing locations.
- Increase the amount of newness across the assortment by nearly 50% and lead with innovation across owned, emerging and national brands.
Fandom and culture
- Continue sharpening our focus on categories within Fun101 that matters most to consumers like sports, pop culture, toys and trading cards.
- Reimagine fan central with expanded shop-in-shops, elevated presentation and enhanced licensing assortment.
Scaling differentiated offerings
- Accelerate technology and AI to deepen personalization and engagement.
- Scale Target Circle 360, Roundel and Target Plus.
- Enhance speed and efficiency across our leading suite of same-day fulfillment services, which account for 2/3 of digital sales. We’ll also meaningfully expand the reach of next-day brown box delivery with the addition of 20 new metro areas this spring.
2026 Outlook
~2% net sales growth
Including a small increase in comparable sales and >1% growth from new stores and non-merchandise revenue
$7.50-$8.50 EPS
(GAAP & Adjusted)
Represents healthy growth vs. last year’s Adjusted EPS
All earnings per share figures refer to diluted EPS.
For a reconciliation of adjusted earnings per share, please see our Q4 and full-year 2025 earnings release.
Statements in this document about our future financial performance, including our investment plans, and our strategy for growth are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Please see our Q4 and full-year 2025 earnings release and our SEC filings for risks and uncertainties that could cause Target's results to differ materially from what was expected as of the date of this document, March 3, 2026.
