Investing.com -- Target Corporation (NYSE: TGT) shares are trading around 1.4% higher premarket on Wednesday after the company reported first-quarter results that exceeded Wall Street expectations.

Earnings per share came in at $1.71, beating the analyst estimate of $1.46, and revenue of $25.44 billion, topping the consensus of $24.66 billion.

The retailer’s net sales grew 6.7% YoY, driven by broad-based strength across merchandise categories and sales channels. Comparable sales increased 5.6%, with comparable traffic up 4.4% compared with the first quarter of 2025. Digital comparable sales grew 8.9%, led by more than 27% growth in same-day delivery powered by Target Circle 360.

Non-merchandise sales surged nearly 25%, reflecting strong growth in Roundel ad revenue, Target Circle 360 membership revenue, and the Target+ marketplace.

"First quarter financial results were stronger than expected, providing encouraging early signs that our clarified strategy is resonating with our guests and driving broad-based growth across our business," said Michael Fiddelke, Chief Executive Officer of Target.

Target raised its full-year outlook, now expecting net sales growth around 4% compared with 2025, double its prior target of 2% growth. The company also expects full-year 2026 adjusted EPS near the high end of its prior guidance range of $7.50 to $8.50, with the midpoint of $8.00 matching analyst expectations.

The retailer projects full-year 2026 operating income margin rate more than 20 basis points higher than the 4.6% adjusted operating income margin rate in 2025.