Dollar General (NYSE:DG) Issues FY 2026 Earnings Guidance

Key Points

• Dollar General raised its FY 2026 outlook, forecasting EPS of $7.80–$8.00 versus the $7.23 analyst consensus and revenue of $44.4–$44.6 billion, broadly in line with expectations.
• The retailer’s latest quarter exceeded estimates, with revenue of about $11.3 billion, diluted EPS of $2.48 versus $2.01 expected, and comparable-store sales growth of 3.5%.
• Dollar General declared a quarterly dividend of $0.59 per share and plans up to $700 million in share repurchases, while analysts remain broadly cautious with an average “Hold” rating and a $130.42 price target.

Dollar General (NYSE:DG - Get Free Report) issued an update on its FY 2026 earnings guidance on Thursday morning. The company provided EPS guidance of 7.800-8.000 for the period, compared to the consensus EPS estimate of 7.230. The company issued revenue guidance of $44.4 billion-$44.6 billion, compared to the consensus revenue estimate of $44.4 billion.

Dollar General Price Performance

Shares of DG opened at $122.97 on Thursday. The company has a debt-to-equity ratio of 0.52, a quick ratio of 0.25 and a current ratio of 1.17. The firm has a market capitalization of $27.13 billion, a PE ratio of 17.39, a P/E/G ratio of 1.86 and a beta of 0.23. The stock has a 50 day simple moving average of $120.97 and a 200 day simple moving average of $123.31. Dollar General has a 52-week low of $95.11 and a 52-week high of $158.23.

Dollar General (NYSE:DG - Get Free Report) last released its quarterly earnings results on Thursday, August 27th. The company reported $2.48 earnings per share for the quarter, beating the consensus estimate of $2.01 by $0.47. 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 during the quarter, compared to analysts' expectations of $11.20 billion. Dollar General has set its FY 2026 guidance at 7.800-8.000 EPS. Sell-side analysts predict that Dollar General will post 7.38 EPS for the current fiscal year.

Dollar General Announces Dividend

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

Analysts Set New Price Targets

Several analysts recently weighed in on the company. UBS Group reaffirmed a "buy" rating on shares of Dollar General in a research note on Wednesday, May 27th. Citigroup lowered their price target on shares of Dollar General from $138.00 to $116.00 and set a "neutral" rating for the company in a report on Wednesday, June 3rd. Raymond James Financial reissued an "outperform" rating and issued a $145.00 price target on shares of Dollar General in a research note on Wednesday, June 3rd. Morgan Stanley reduced their price objective on Dollar General from $150.00 to $132.00 and set an "equal weight" rating for the company in a research note on Wednesday, June 3rd. Finally, Sanford C. Bernstein reaffirmed an "outperform" rating and set a $149.00 price objective on shares of Dollar General in a report on Wednesday, June 3rd. Ten research analysts have rated the stock with a Buy rating, eighteen have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, Dollar General has an average rating of "Hold" and an average price target of $130.42.

Dollar General News Summary

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

A number of large investors have recently added to or reduced their stakes in the company. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its holdings in Dollar General by 4.7% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 26,317 shares of the company's stock valued at $2,314,000 after purchasing an additional 1,185 shares during the period. NewEdge Advisors LLC lifted its position in shares of Dollar General by 12.3% in the 1st quarter. NewEdge Advisors LLC now owns 10,450 shares of the company's stock worth $919,000 after purchasing an additional 1,148 shares during the period. Woodline Partners LP increased its position in shares of Dollar General by 40.7% during the first quarter. Woodline Partners LP now owns 18,580 shares of the company's stock valued at $1,634,000 after buying an additional 5,373 shares during the period. Sivia Capital Partners LLC purchased a new position in shares of Dollar General during the second quarter valued at about $211,000. Finally, Jump Financial LLC bought a new position in Dollar General in the second quarter worth about $209,000. Institutional investors own 91.77% of the company's stock.

About Dollar General

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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