Dollar General (NYSE:DG) Issues Quarterly Earnings Results

Key Points

• Dollar General beat quarterly expectations: EPS came in at $2.48 versus the $2.01 consensus, while revenue reached $11.29 billion against estimates of $11.20 billion. Comparable-store sales increased 3.5%, supported by higher traffic and transaction sizes.
• Management raised its fiscal 2026 outlook to EPS of $7.80–$8.00 and approximately 4.0%–4.3% net-sales growth, signaling improved expectations for the year.
• Shareholder returns remain a focus: Dollar General declared a $0.59 quarterly dividend, equivalent to a 1.9% yield, and plans up to $700 million in share repurchases. Analysts’ consensus rating remains “Hold,” with an average price target of $130.42.

Dollar General (NYSE:DG - Get Free Report) issued its quarterly earnings results on Thursday. The company reported $2.48 EPS for the quarter, topping analysts' consensus estimates of $2.01 by $0.47, FiscalAI reports. Dollar General had a net margin of 3.63% and a return on equity of 18.65%. The company had revenue of $11.29 billion for the quarter, compared to analyst estimates of $11.20 billion. Dollar General updated its FY 2026 guidance to 7.800-8.000 EPS.

Dollar General Stock Up 0.3%

Shares of DG opened at $122.97 on Thursday. The business's 50 day moving average is $120.97 and its 200 day moving average is $123.31. Dollar General has a 12-month low of $95.11 and a 12-month high of $158.23. The company has a market capitalization of $27.13 billion, a PE ratio of 17.39, a price-to-earnings-growth ratio of 1.86 and a beta of 0.23. The company has a current ratio of 1.17, a quick ratio of 0.25 and a debt-to-equity ratio of 0.52.

Dollar General Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, July 21st. Shareholders of record on Tuesday, July 7th were paid a dividend of $0.59 per share. The ex-dividend date was Tuesday, July 7th. This represents a $2.36 dividend on an annualized basis and a yield of 1.9%. Dollar General's dividend payout ratio (DPR) is presently 33.38%.

Analyst Upgrades and Downgrades

Several research analysts have issued reports on the company. Barclays cut their price target on Dollar General from $151.00 to $148.00 and set an "overweight" rating on the stock in a report on Wednesday, June 3rd. UBS Group reissued a "buy" rating on shares of Dollar General in a report on Wednesday, May 27th. Wolfe Research restated an "outperform" rating and issued a $143.00 price objective on shares of Dollar General in a research report on Thursday, August 13th. Rothschild & Co Redburn decreased their target price on shares of Dollar General from $111.00 to $90.00 and set a "sell" rating on the stock in a research report on Monday, May 18th. Finally, Deutsche Bank Aktiengesellschaft upped their price target on shares of Dollar General from $110.00 to $114.00 and gave the company a "hold" rating in a report on Thursday, June 4th. Ten equities research analysts have rated the stock with a Buy rating, eighteen have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, Dollar General currently has an average rating of "Hold" and a consensus target price of $130.42.

Trending Headlines about Dollar General

Here are the key news stories impacting Dollar General this week:

• Positive Sentiment: Earnings and revenue beat estimates: Fiscal Q2 revenue increased 5.2% year over year to $11.3 billion, while diluted EPS rose 33.3% to $2.48, well above the $2.01 consensus estimate. Operating profit climbed 29.2% to $769.2 million. Dollar General Corporation Reports Second Quarter 2026 Results
• Positive Sentiment: Healthy comparable-store performance: Same-store sales grew 3.5%, supported by a 2.0% increase in customer traffic and a 1.5% rise in average transaction size, suggesting improving consumer demand. Dollar General Q2 Revenue Hits $11.3 Billion as EPS Rises 33%
• Positive Sentiment: Outlook raised: Management now expects fiscal 2026 net sales growth of approximately 4.0% to 4.3% and EPS of $7.80 to $8.00, improving the earnings outlook for investors.
• Positive Sentiment: Shareholder returns and expansion: Dollar General declared a quarterly dividend of $0.59 per share, plans up to $700 million in share repurchases, and opened 126 stores during the quarter.
• Neutral Sentiment: Institutional positioning was mixed: Some large investors increased their holdings, including Pzena Investment Management and Invesco, while BlackRock and other institutions reduced positions. This signals differing views on the retailer’s recovery prospects.
• Negative Sentiment: Profitability remains a concern: Despite the strong improvement, Dollar General’s reported net margin was only 3.63%. Investors may continue to monitor costs, margins and competitive pressure affecting discount retailers.

Institutional Investors Weigh In On Dollar General

Several institutional investors have recently made changes to their positions in the company. Virtu Financial LLC purchased a new position in shares of Dollar General during the fourth quarter worth approximately $411,000. Compound Planning Inc. raised its position in Dollar General by 13.7% during the 4th quarter. Compound Planning Inc. now owns 3,507 shares of the company's stock valued at $466,000 after purchasing an additional 423 shares in the last quarter. Corient Private Wealth LLC lifted its holdings in shares of Dollar General by 618.7% in the 4th quarter. Corient Private Wealth LLC now owns 200,632 shares of the company's stock worth $26,638,000 after buying an additional 172,717 shares during the period. Mercer Global Advisors Inc. ADV grew its position in shares of Dollar General by 63.4% during the 4th quarter. Mercer Global Advisors Inc. ADV now owns 60,038 shares of the company's stock worth $7,971,000 after buying an additional 23,302 shares in the last quarter. Finally, Raymond James Financial Inc. increased its stake in shares of Dollar General by 15.6% during the fourth quarter. Raymond James Financial Inc. now owns 864,799 shares of the company's stock valued at $114,971,000 after buying an additional 116,669 shares during the period. Institutional investors own 91.77% of the company's stock.

Dollar General Company Profile

Dollar General Corporation is a U.S.-based variety and discount retailer operating a large network of small-format stores that serve primarily rural and suburban communities. The company is publicly traded on the New York Stock Exchange under the ticker DG and is headquartered in the Nashville/Goodlettsville, Tennessee area. Founded in 1939, Dollar General has grown from a regional operation into one of the nation's prominent low-price retailers focused on convenience and value.

Dollar General's stores offer a wide assortment of everyday consumables and household goods, including food and beverage items, cleaning supplies, health and beauty products, paper goods, apparel basics, seasonal merchandise and small household items.

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