<div id="readability-page-1"><div id="blog-content"><img height="267" src="https://imageproxy.pbkrs.com/https://staticx-tuner.zacks.com/images/default_article_images/default341.jpg?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="400" original-src="https://imageproxy.pbkrs.com/https://staticx-tuner.zacks.com/images/default_article_images/default341.jpg"/>Image: Bigstock Target (TGT - Free Report) and Walmart (WMT - Free Report) offered insight into the strength of the consumer in their Q3 reports this week, and both were able to pleasantly beat earnings expectations.This has made the conversation more riveting as to whether it's time to buy stock in either of these omnichannel retail giants. To that point, investors have been eyeing Walmart stock for more upside and Target shares for a rebound, along with its more enticing dividend and cheaper valuation.However, thanks to a tech-driven shift from a traditional retailer to having a massive online presence, Walmart's growth has been rather captivating. Showing signs of a turnaround, Target has tried to follow suit in a bid to offset its exposure to more discretionary items that have coincided with weaker store traffic. <img height="264" src="https://imageproxy.pbkrs.com/https://staticx-tuner.zacks.com/images/articles/charts/51/133278.jpg/query-dj0xNDcyNzcwNzY0?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="650" original-src="https://imageproxy.pbkrs.com/https://staticx-tuner.zacks.com/images/articles/charts/51/133278.jpg/query-dj0xNDcyNzcwNzY0"/>Image Source: Zacks Investment Research<h3> Target &amp; Walmart Q3 Review</h3>Despite choppy consumer discretionary spending, Target’s Q3 EPS of $1.78 beat expectations of $1.76 per share, although this was down from $1.85 in the prior year quarter. Attributed to what it called affordability pressures on consumer goods, Target’s Q3 sales dipped over 1% year-over-year to $25.27 billion and slightly missed estimates of $25.35 billion.Meanwhile, Walmart’s global e-commerce expansion led to its Q3 sales rising 6% year-over-year to $179.49 billion, topping estimates of $177.14 billion by 1%. Walmart’s Q3 EPS of $0.62 edged estimates of $0.61 and was up from $0.58 per share a year ago.<h3> Guidance &amp; Outlook</h3>Signaling confidence heading into the holiday shopping season, Walmart now expects its current fiscal 2026 net sales growth at 4.8%-5.1%, up from its prior guidance range of 3.75%-4.75%. Additionally, Walmart raised its guidance for full-year operating income by nearly 400 basis points to a growth range of 8.5%-9.5%.As for Target, the retailer cut the top end of its full-year profit outlook, guiding its current FY26 EPS at $7.00-$8.00 from previous expectations of $7.00-$9.00. Taking a more cautious stance on the holiday outlook, Target did not provide revenue guidance, with the retailer highlighting ongoing softness in discretionary categories but strength in food, beverage, and digital sales. <h3> Following the Trend of EPS Revisions</h3>While Target’s updated FY26 EPS guidance still falls in range of the Zacks Consensus of $7.30, it’s noteworthy that this would be a 17% drop from $8.86 per share in its FY25. That said, FY27 EPS is projected to stabilize and rise 9% to $7.94.Taking away from the anticipated rebound in Target’s bottom line is that FY27 EPS estimates are down 6% in the last month, and FY26 EPS estimates have dipped more than 1%. <img height="129" src="https://imageproxy.pbkrs.com/https://staticx-tuner.zacks.com/images/articles/charts/1a/133279.jpg/query-dj03OTM3OTgyMjg?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="650" original-src="https://imageproxy.pbkrs.com/https://staticx-tuner.zacks.com/images/articles/charts/1a/133279.jpg/query-dj03OTM3OTgyMjg"/>Image Source: Zacks Investment Research Pivoting to Walmart, annual earnings are now expected to rise 4% in FY26 and are projected to jump another 12% in FY27 to $2.92 per share. In the last 30 days, Walmart’s FY26 EPS estimates are modestly higher, but FY27 EPS estimates are slightly down. <img height="133" src="https://imageproxy.pbkrs.com/https://staticx-tuner.zacks.com/images/articles/charts/9a/133280.jpg/query-dj01NDY1MTQxNA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="650" original-src="https://imageproxy.pbkrs.com/https://staticx-tuner.zacks.com/images/articles/charts/9a/133280.jpg/query-dj01NDY1MTQxNA"/>Image Source: Zacks Investment Research<h3> Bottom Line</h3>Following their Q3 reports, Target and Walmart stock have both retained a Zacks Rank #3 (Hold) rating as a more compelling trend of EPS revisions has been needed to suggest more upside in Walmart or a rebound in Target. Considering such, Walmart’s EPS beat and optimistic outlook could get the needle going in this regard, while Target’s cautious stance could dim its prospects.<hr/>More By This Author:Does Nvidia Stock Still Have Enough Mojo To Buy? Is It Too Soon To Buy The Dip In Coinbase Stock? IBM Expands AI Consulting Capabilities: Will It Drive Growth? </div></div>

Target and Walmart beat Q3 EPS expectations, sparking investment interest. Walmart's e-commerce growth and optimistic fiscal guidance suggest potential upside, while Target's cautious outlook and reduced profit guidance may limit rebound prospects. Both stocks hold a Zacks Rank #3 (Hold), indicating a need for more compelling EPS revisions for further upside. Investors are considering Walmart for growth and Target for dividends and valuation.

- Target and Walmart reported stronger-than-expected Q3 earnings, with Target's EPS at $1.78 and Walmart's at $0.62, reflecting differing consumer trends.  
- Walmart's sales rose 6% year-over-year to $179.49 billion, while Target's sales dipped slightly to $25.27 billion, prompting a cautious outlook for the holiday season.  
- Both companies maintain a Zacks Rank #3 (Hold), with Walmart showing a more optimistic growth forecast compared to Target's revised profit outlook.

Buy Target Or Walmart Stock After Beating Q3 EPS Expectations?