Target Corp. (TGT) Jumps 6.7% as Firm Turns to AI For Growth

We recently published The 10 Biggest Winners in a Bloody Market. Target Corporation (NYSE:TGT) was one of the best performers on Tuesday.

Target snapped a three-day losing streak on Tuesday, adding 6.74 percent to close at $120.80 apiece as investors took heart from its adoption of AI to boost growth this year.

In a statement following the results of its 2025 earnings performance, Target Corporation (NYSE:TGT) outlined its strategic plan for a new growth chapter beginning this year, including accelerating technology through AI adoption, transforming in-store floor plans and displays, increasing payroll and training, as well as strengthening and evolving the assortment in key categories, among others.

Target Corporation (NYSE:TGT) has programmed $5 billion in capital expenditures this year to support new stores and ongoing remodels, technology and supply chain investments. It said that it expects to end the year with 30 additional stores as part of its plan to open 300 new stores by 2035.

Later this month, it will open its 2,000th store in Fuquay-Varina, North Carolina.

The optimistic outlook was despite a dismal earnings performance last year, with full-year net income dropping by 9.4 percent to $3.7 billion from $4.09 billion in 2024. Net sales dipped by 1.7 percent to $104.78 billion from $106.6 billion year-on-year.

In the fourth quarter alone, net income dropped by 5.2 percent to $1.05 billion from $1.1 billion, while net sales declined by 1.5 percent to $30.45 billion from $30.9 billion.

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