Target Profit Falls Nearly 20% as Sales Slide
The retailer reported a fifth straight quarter of comparable sales decline as new CEO Michael Fiddelke pushes an AI-driven merchandising push.
Updated on Nov. 6, 2026 in Retail
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Target's quarterly profit fell nearly 20%, and comparable sales dropped for a fifth straight quarter, with in-store sales down 3.8% in the quarter ended November 1. Revenue fell 1.6% from a year earlier to $25.27 billion, and earnings per share were $1.78, compared with $1.85 a year earlier.
Why it matters
The results highlight the pressure on Target as it competes with Walmart, whose U.S. comparable sales rose 4.5% in its most recent quarter. Target's push to speed up trend-driven merchandising reflects an effort to win back shoppers in a difficult retail market.
Target's revenue slipped 1.6% to $25.27 billion and earnings per share fell to $1.78 from $1.85, while in-store comparable sales dropped 3.8% and digital sales grew 2.4%. The company has cut 1,800 corporate jobs as part of its restructuring under CEO Michael Fiddelke.
The players
Target
Target is a major U.S. general merchandise retailer headquartered in Minneapolis, known for its discount-chain positioning and private-label brands.
Michael Fiddelke
Michael Fiddelke is Target's chief executive, who succeeded Brian Cornell and has led cost cuts and the company's AI-driven merchandising push.
Walmart
Walmart is the largest U.S. retailer by revenue and Target's chief competitor in discount general merchandise and grocery.
The details
Target committed an extra $1 billion in 2026 investment centered on Trend Brain, a generative AI tool designed to shorten the time between spotting a trend and stocking it on shelves. Merchants scout trade shows and monitor social platforms, and the tool processes those signals, while Toys posted nearly 10% comparable growth even as higher-margin clothing and home goods stayed soft.
Timeline
Quarter ended November 1, 2026: Target reported the falling comparable sales and profit decline.
Earlier in 2026: Michael Fiddelke succeeded Brian Cornell as Target CEO.
Next year's earnings season: Target's fourth-quarter results are expected.
Market Landscape
Target's fifth straight quarter of comparable sales declines contrasts with Walmart's 4.5% U.S. comparable sales growth, highlighting a widening gap between the two big-box discount rivals. Target's bet on AI-driven trend spotting is an attempt to recapture share in higher-margin categories that have stayed soft.
Shoppers may see Target's push to stock trending items faster reflected in its toy and seasonal aisles, where comparable growth has been strongest. Continued softness in clothing and home goods could mean fewer discounts or limited assortment changes in those departments.
The takeaway
Retailers that depend on in-store traffic face pressure to speed up merchandising decisions, and Target's AI investment signals how the sector is trying to close that gap. Watch whether faster trend response can lift higher-margin categories in coming quarters.
What happens next
Target's fourth-quarter results are expected during next year's earnings season, when investors will see whether the sales decline has continued.
Further reading
For broader context on how chains are adjusting to shifting shopper habits, see Retail coverage.
Source note: This article includes information reported by Startup Fortune.
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