How did Target's revenue trends shift in Q4 2025?

Target's revenue trends in Q4 2025 showed a slight positive momentum, driven by strategic growth initiatives and robust digital expansion, despite facing economic challenges and consumer caution in discretionary spending.

1. **Revenue Growth Expectations**: Target anticipates driving over $15 billion in revenue growth over the next five years, indicating a positive outlook for revenue trends.
2. **Beauty Sales Growth**: The Beauty category saw nearly 7% sales growth and share gains, contributing to the revenue trend positively.
3. **Traffic Growth**: Target reported a 2%-plus traffic growth in Q4, which is a positive indicator for revenue generation.
4. **Target Plus Growth**: The Target Plus marketplace experienced more than 35% growth in third-party GMV last year, suggesting a strong contribution to revenue from this segment.
5. **Digital Business Performance**: Target's digital business is profitable and continues to grow, with nearly 9% growth in Q4. This reflects a shift towards online sales, which is a key driver of revenue in the current retail landscape.

In conclusion, Target's revenue trends in Q4 2025 are shifting towards a positive trajectory, supported by strategic investments, robust digital growth, and specific category growths like Beauty and Target Plus. These factors, despite some economic challenges, position Target for long-term revenue and market share gains.