Dollar General beats Q2 estimates, raises full-year guidance

Dollar General Corp posted better-than-expected second-quarter financial results on Thursday and raised its fiscal 2026 guidance above market expectations.

The discount retailer reported net sales of $11.29 billion, up 5.2% year over year. Revenue beat the consensus estimate of $11.197 billion. Earnings per share rose 33% to $2.48, surpassing Wall Street's expectation of $2.01. The results included a gain of approximately 25 cents per share related to tariff refunds, net of associated reinvestment.

Dollar General raised its fiscal 2026 EPS guidance to a range of $7.80 to $8.00, up from the prior range of $7.20 to $7.45. The market consensus stood at $7.41 per share.

The company also lifted its sales forecast to a range of $44.43 billion to $44.56 billion, compared with the previous range of $44.31 billion to $44.52 billion. Wall Street had expected sales of $44.43 billion.

"We are pleased with our second-quarter performance, which included balanced sales growth, healthy operating margin expansion, and strong double-digit EPS growth," said Todd Vasos, CEO of Dollar General. "These results exceeded our expectations even without the benefit of tariff refunds, net of reinvestment, demonstrating the strength of our team's execution, strategic direction, and ongoing dedication. I want to thank our store, distribution center, private fleet, and store support center associates for their commitment to serving others every day."

Dollar General shares rose 1.2% in pre-market trading to $127.45.

Following the earnings release, analysts adjusted their price targets for Dollar General.

Goldman Sachs analyst Kate McShane maintained a Neutral rating on the stock and raised the price target from $128 to $141.

BMO Capital analyst Kelly Bania maintained a Market Perform rating and increased the price target from $120 to $135.

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