Walmart, Target earnings put focus on new CEOs Furner, Fiddelke
Walmart CEO John Furner (left) and Target CEO Michael Fiddelke.
Walmart (L) | Getty Images (R)
When Walmart And Aim Investors reporting holiday earnings this quarter may be quick to dismiss these results.
Instead, they will likely focus more on the future of the two major retailers under new CEOs and the outlook for U.S. consumers in 2026.
Both companies experienced leadership changes this month: Walmart CEO John Furner and Target CEO Michael Fiddelke, both long-time employees of the company, started their roles on February 1.
Competing retailers are struggling with the same economic challenges. U.S. consumers are still spending but buying selectively, as inflation and tariffs fuel higher prices for food and other basic needs, causing some shoppers to think twice about discretionary purchases.
While both Walmart and Target have new CEOs, their paths forward look markedly different.
Walmart’s shares are up about 163% over the past five years and are up about 24% in the past year as of Tuesday’s market close. It hit a 52-week high on Tuesday. Target’s shares have lost nearly 40% of their value in the last five years and fell 10% last year.
Retailers’ stock market performance reflects the sharp divergence in sales results. Walmart attracts shoppers from across income brackets and is gaining momentum with high-margin businesses like online sales and advertising. Target is struggling with slowing sales and weak store traffic. Walmart expects full-year net sales to increase 4.8% to 5.1%. Target, on the other hand, is on track to decline in sales for the entire year.
Neil Saunders, managing director and retail analyst at GlobalData, said Walmart CEO John Furner is taking over a business that is “fundamentally sound” and “on a great path.”
“In many ways, his job is to keep the ship steady and see what he can do to increase speed,” he said.
On the other hand, Saunders said Target CEO Michael Fiddelke has to “sell the Target of the future” after four years of roughly flat annual sales.
“I think what he’ll want to do is add some excitement and say, ‘Look, I’m really excited about this role. I’m really excited about where Target can go. We’re going to change things. We’re going to become a different business. We’re going to get back to what we were before,'” he said.
Here’s a closer look at what we know so far about CEOs’ plans and what investors will be listening for during earnings:
Walmart Inc. during the company’s listing on Nasdaq MarketSite in New York, USA on Tuesday, December 9, 2025. sign.
Michael Nagle | Bloomberg | Getty Images
Walmart: We’re extending our winning streak
Walmart will report its fiscal fourth-quarter earnings before the bell on Thursday.
The retail giant has had a busy few months: Walmart’s market value soars with the hiring of a new CEO It surpassed $1 trillion in early February. The company also shifted its stock listing from the New York Stock Exchange to the tech-heavy Nasdaq in December and was added to the Nasdaq 100 in January; This points to its aim to be perceived by investors as its main rival, Amazon.
When longtime CEO Doug McMillon left the role, he said in an interview on CNBC’s “Squawk Box” that he was passing the torch to Furner as the company accelerated its adoption of artificial intelligence and reshaped its business and the way its customers shop.
Walmart announced a deal with OpenAI’s ChatGPT and Google’s Gemini, two major AI chatbot platforms, to make it easier for shoppers to find and purchase its products.
Goldman Sachs retail analyst Kate McShane said Furner, who, like his predecessor, spent decades at Walmart rising to the top at the Arkansas-based company, oversaw the company’s largest segment in his previous role as Walmart’s CEO. USA said Furner was chosen in part because of his success in expanding Walmart’s digital business, which he said is an important part of its future.
Walmart Inc. (NYSE: WMT) announced that its Board of Directors has selected John Furner, 51, to replace Doug McMillon, 59, as President and Chief Executive Officer of Walmart Inc., effective February 1, 2026.
Courtesy: Walmart Inc.
In May, Walmart posted its first profitable quarter in the U.S. and globally for its e-commerce business, as its home delivery, advertising business and third-party marketplace grew.
Jefferies retail analyst Corey Tarlowe said Walmart investors “want more of the same,” meaning more e-commerce growth, grocery shopping success and market share gains across a broader range of customers, including more affluent shoppers.
But Walmart’s results for the holiday quarter could mark a turning point in the retail world. Amazon may become the largest retailer in terms of annual revenue for the first time, even though the company makes most of its money from technology services such as cloud computing and advertising.
Saunders said the comparison was not apples-to-apples, but was “symbolically important” as the two rivals tried to outmaneuver each other. Walmart has grown in part by relying on stores to deliver groceries and offer pickup for online orders. Amazon, which recently announced it would close Amazon Fresh and Go stores and convert some into Whole Foods locations, is trying to “connect” fresh food to its current massive online ordering volume, he said.
Walmart, the nation’s largest grocer by revenue, is also fending off expansion by specialty discounter Aldi and could feel the pressure from the supermarket operator. Krogerrecently hired Walmart alumnus Greg Foran as its new CEO.
In a memo to employees on his second day as CEO, Furner said his leadership would be shaped by his more than 32 years at Walmart, adding that he believed the company was “well positioned to lead in the next era of retail.”
“This next era will unlock new ways to bring our human-led, technology-enabled vision to life,” he said in the memo. “Using our global scale, we can better serve our customers and members with speed, reliability and better experiences wherever they choose to shop with us.”
He said the strategy is already in place as “technology and AI help reduce friction in our business, simplify decisions, improve inventory flow, and free up time so you can focus on what matters most: serving customers, members, and each other.”
Customers shop at a Target store in Chicago, Illinois, on February 10, 2026.
Scott Olson | Getty Images
Goal: Chasing a comeback
Target’s earnings report may be the deepest look yet at the cheap-and-chic discount store’s return-to-growth roadmap, according to Fiddelke.
The company is pursuing a turnaround and plans to share its holiday quarter results and current fiscal year expectations at a financial meeting on March 3 at its Minneapolis headquarters.
The major retailer has struggled with a number of challenges, including declining visits to its stores and website, customer complaints about store conditions and backlash over the company’s political and social stances, such as its reversal of diversity, equity and inclusion commitments and its decision not to publicly oppose increased immigration enforcement in its home state.
As sales dropped, Target also reduced its workforce. IT Last year, 1,800 corporate jobs were cut, the first major layoffs in a decade.
Target’s earnings report is more anticipated than Walmart’s because there are so many questions about its turnaround strategy and how long it will take, Goldman Sachs’ McShane said. Investors are debating how much the company may need to invest in merchandising, marketing and store labor to increase sales.
“Walmart has pursued a much more aggressive digital agenda than Target across omnichannel, automation and marketplaces,” he said.
He added that while Target doesn’t want to be Amazon or Walmart, they “have to figure out who they want to be and how to compete.”
Target’s Chief Operating Officer, Michael Fiddelke, will take over as CEO from Brian Cornell.
Courtesy of Target
Fiddelke has already signaled that he will make changes. He announced in an email to employees last week that Target would increase store staffing, but Fiddelke and the company declined to say how much they would invest in additional hours for employees. In addition, approximately 500 employees in distribution centers and regional offices are being laid off.
Fiddelke shook up Target’s leadership team, bringing back the role of chief merchant and announcing a high-profile departure effective Sunday. Former guest experience officer Cara Sylvester became Target’s chief merchandising officer, and former merchandising director of food, essentials and beauty Lisa Roath replaced Fiddelke as chief operating officer.
At the same time, Chief Merchandising Officer Rick Gomez is leaving the company after more than a decade, and Jill Sando, head of sales for Fun101, the apparel and accessories, home, toys and entertainment division, will retire.
Target also opened a new concept store in New York City’s SoHo district. While the location is one-of-a-kind, McShane said its focus on fashion could inspire more changes at stores across the country and in the suburbs.
The effort to highlight stronger products is an important part of Fiddelke’s strategy. In an email to employees and customers during his first week, Fiddelke outlined four priorities: improving Target’s sales, improving the customer experience, accelerating technology and strengthening the company’s workforce and surrounding communities.
Jefferies’ Tarlowe said Target’s upcoming investor event is “a chance for them to actually communicate with everyone and say, ‘We hear what you want. Here’s how we’re going to deliver on that.'”
“Change is happening, it’s a matter of whether the market sees it and appreciates it,” he said.
Clarification: This story has been updated to clarify that Walmart changed its listing to Nasdaq in December and was added to the Nasdaq 100 index in January.
