Walmart vs. Target: New CEOs, Holiday Earnings & the Retail Outlook for 2026

The changing of the guard at retail giants Walmart and Target is prompting investors to look beyond the latest earnings reports and focus on the future strategies of their new CEOs. Both companies appointed new leaders on February 1, 2026: John Furner at Walmart and Michael Fiddelke at Target. While both face a challenging consumer environment marked by selective spending driven by inflation and tariffs, their paths forward appear markedly different.

The contrast in their situations is reflected in their stock market performance. Walmart’s stock has surged approximately 163% over the past five years and is up around 24% over the last year, reaching a 52-week high on Tuesday, February 18, 2026. Target, conversely, has seen its shares tumble roughly 40% over the same five-year period and decline 10% in the past year.

Walmart: Extending the Winning Streak

Walmart will report its fiscal fourth-quarter earnings before the market opens on Thursday, February 27, 2026. The company has recently achieved several milestones, including surpassing a market capitalization of $1 trillion in early February and transitioning its stock listing to the Nasdaq in December, followed by inclusion in the Nasdaq 100 index in January. These moves signal Walmart’s ambition to be viewed by investors as a technology-driven company akin to Amazon.

Furner’s appointment follows the retirement of Doug McMillon, who described his successor as inheriting a “fundamentally sound” business “on a great trajectory.” According to Neil Saunders, managing director and retail analyst at GlobalData, Furner’s primary task is to “keep the ship steady” and build upon existing momentum. Furner’s success in expanding Walmart’s digital business during his tenure as CEO of Walmart U.S. Was a key factor in his selection, according to Kate McShane, a retail analyst for Goldman Sachs.

Walmart’s recent profitability in its e-commerce business – posting its first profitable quarter in May – is a significant achievement. The company is also benefiting from growth in its advertising business and third-party marketplace. Investors are anticipating continued growth in these areas, as well as further expansion of its grocery business. Walmart expects its full-year net sales to rise by 4.8% to 5.1%.

The company is actively integrating artificial intelligence into its operations, forging partnerships with OpenAI’s ChatGPT and Google’s Gemini to enhance the shopping experience. Furner emphasized in a memo to employees that technology and AI will be crucial in reducing friction, simplifying decisions, and improving inventory flow.

Target: Chasing a Comeback

Target’s earnings report, scheduled for March 3, 2026, will be closely scrutinized as Michael Fiddelke attempts to chart a course for a turnaround. The company has faced challenges including declining store and website traffic, customer concerns about store conditions, and negative reactions to its stances on social and political issues.

Fiddelke has already signaled a shift in strategy, announcing plans to increase store staffing and making changes to the leadership team. Cara Sylvester has been appointed chief merchandising officer, and Lisa Roath will succeed Fiddelke as chief operating officer. The company has also opened a new concept store in New York City’s SoHo neighborhood, which may serve as a model for future store designs and merchandising strategies.

According to Saunders, Fiddelke’s challenge is to “sell the Target of the future” after four years of relatively flat sales. He needs to inject excitement and articulate a clear vision for the company’s future. Target has recently cut approximately 1,800 corporate roles in an effort to streamline operations and reduce costs.

Investors are looking for a detailed plan to address the company’s challenges and restore growth. Analysts are particularly interested in how Target plans to improve its merchandising, enhance the customer experience, and leverage technology. The company’s recent decision to step up store staffing is a positive sign, but the scale of the investment and its impact on profitability remain to be seen.

Target is also navigating increased competition from discounters like Aldi and a newly energized Kroger, which recently appointed former Walmart executive Greg Foran as its new CEO.

Fiddelke outlined four priorities in a recent communication to employees: sharpening merchandising, improving the customer experience, accelerating technology adoption, and strengthening the company’s workforce and communities. The upcoming investor event will be a critical opportunity for Target to communicate its turnaround strategy and regain investor confidence.