As the Q1 earnings season wraps, let’s dig into this quarter’s best and worst performers in the large-format grocery & general merchandise retailer industry, including Target (NYSE: TGT) and its peers.
Big-box retailers operate large stores that sell groceries and general merchandise at highly competitive prices. Because of their scale and resulting purchasing power, these big-box retailers–with annual sales in the tens to hundreds of billions of dollars–are able to get attractive volume discounts and sell at often the lowest prices. While e-commerce is a threat, these retailers have been able to weather the storm by either providing a unique in-store shopping experience or by reinvesting their hefty profits into omnichannel investments.
The 4 large-format grocery & general merchandise retailer stocks we track reported a strong Q1. As a group, revenues beat analysts’ consensus estimates by 2.7% while next quarter’s revenue guidance was 0.5% below.
In light of this news, share prices of the companies have held steady as they are up 1.4% on average since the latest earnings results.
Best Q1: Target (NYSE: TGT)
With a higher focus on style and aesthetics compared to other large general merchandise retailers, Target (NYSE: TGT) serves the suburban consumer who is looking for a wide range of products under one roof.
Target reported revenues of $25.44 billion, up 6.7% year on year. This print exceeded analysts’ expectations by 3.4%. Overall, it was an exceptional quarter for the company with a beat of analysts’ EPS and gross margin estimates.
"First quarter financial results were stronger than expected, providing encouraging early signs that our clarified strategy is resonating with our guests and driving broad-based growth across our business," said Michael Fiddelke, Chief Executive Officer of Target.
Target delivered the slowest revenue growth in the group. Interestingly, the stock is up 21.7% since reporting and currently trades at $154.85.
Is now the time to buy Target? Access our full analysis of the earnings results here, it’s free.
BJ's (NYSE: BJ)
Appealing to the budget-conscious individual shopping for a household, BJ’s Wholesale Club (NYSE: BJ) is a membership-only retail chain that sells groceries, appliances, electronics, and household items, often in bulk quantities.
BJ's reported revenues of $5.66 billion, up 9.9% year on year, outperforming analysts’ expectations by 4.2%. The business had a strong quarter with a beat of analysts’ EPS and EBITDA estimates.
BJ's delivered the biggest analyst estimate beat among its peers. However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $93.65.
Is now the time to buy BJ's? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: Walmart (NASDAQ: WMT)
Known for its large-format Supercenters, Walmart (NASDAQ: WMT) is a retail pioneer that serves a budget-conscious consumer who is looking for a wide range of products under one roof.
Walmart reported revenues of $177.8 billion, up 7.3% year on year, exceeding analysts’ expectations by 1.6%. Still, it was a slower quarter as it posted full-year EPS guidance missing analysts’ expectations and EPS guidance for next quarter missing analysts’ expectations.
As expected, the stock is down 11.9% since the results and currently trades at $115.32.
Read our full analysis of Walmart’s results here.
Costco (NASDAQ: COST)
Designed to be a one-stop shop for the suburban consumer, Costco (NASDAQ: COST) is a membership-only retail chain that sells groceries, apparel, toys, and household items, often in bulk quantities.
Costco reported revenues of $70.53 billion, up 11.6% year on year. This number topped analysts’ expectations by 1.5%. It was a strong quarter as it also recorded a solid beat of analysts’ gross margin estimates.
Costco pulled off the fastest revenue growth but had the weakest performance against analyst estimates in the group. The stock is down 3.5% since reporting and currently trades at $960.76.
Read our full, actionable report on Costco here, it’s free.
Market Update
Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership.
Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products.
By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals.
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