Dollar Tree (NASDAQ:DLTR) Issues FY 2026 Earnings Guidance

Key Points

• Dollar Tree raised its FY 2026 adjusted EPS guidance to $7.70–$8.05, up from $6.70–$7.10, with projected revenue of $20.5–$20.7 billion. Q3 guidance calls for EPS of $0.80–$0.95 and sales of $5.0–$5.1 billion.
• The company reported a strong second quarter, with revenue rising 7% year over year to approximately $4.9 billion and adjusted EPS of $2.70, well above the $1.15 consensus estimate. Operating margin expanded to 14.1% from 5.1%.
• Dollar Tree repurchased $605 million of shares during the quarter under a broader $2.5 billion authorization, while the stock declined 1.7% amid concerns about profit-taking after a roughly 43% three-month rally.

Dollar Tree (NASDAQ:DLTR - Get Free Report) updated its FY 2026 earnings guidance on Thursday. The company provided EPS guidance of 7.700-8.050 for the period, compared to the consensus EPS estimate of 5.950. The company issued revenue guidance of $20.5 billion-$20.7 billion, compared to the consensus revenue estimate of $19.7 billion. Dollar Tree also updated its Q3 2026 guidance to 0.800-0.950 EPS.

Dollar Tree Trading Down 1.7%

Shares of DLTR stock opened at $132.18 on Thursday. The company has a market cap of $25.40 billion, a P/E ratio of 20.65, a PEG ratio of 1.53 and a beta of 0.64. The stock has a 50 day simple moving average of $125.40 and a two-hundred day simple moving average of $114.65. The company has a debt-to-equity ratio of 0.84, a quick ratio of 0.39 and a current ratio of 1.16. Dollar Tree has a fifty-two week low of $84.71 and a fifty-two week high of $142.40.

Dollar Tree (NASDAQ:DLTR - Get Free Report) last posted its quarterly earnings results on Thursday, August 27th. The company reported $2.70 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.15 by $1.55. The firm had revenue of $4.89 billion for the quarter, compared to analysts' expectations of $4.86 billion. Dollar Tree had a return on equity of 35.19% and a net margin of 6.51%.Dollar Tree has set its Q3 2026 guidance at 0.800-0.950 EPS and its FY 2026 guidance at 7.700-8.050 EPS. Research analysts forecast that Dollar Tree will post 7.02 earnings per share for the current year.

Dollar Tree announced that its board has authorized a stock repurchase plan on Thursday, July 2nd that authorizes the company to repurchase $2.50 billion in shares. This repurchase authorization authorizes the company to purchase up to 10.7% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company's management believes its stock is undervalued.

Analyst Upgrades and Downgrades

A number of research firms have recently issued reports on DLTR. Jefferies Financial Group raised shares of Dollar Tree from a "moderate sell" rating to a "buy" rating in a research report on Wednesday, July 8th. Weiss Ratings raised shares of Dollar Tree from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Thursday, June 18th. Gordon Haskett upgraded shares of Dollar Tree from a "reduce" rating to a "hold" rating and set a $115.00 price objective for the company in a report on Thursday, June 4th. Deutsche Bank Aktiengesellschaft lifted their price target on Dollar Tree from $99.00 to $102.00 and gave the company a "hold" rating in a research note on Thursday, June 4th. Finally, Freedom Capital cut Dollar Tree from a "strong-buy" rating to a "hold" rating in a research report on Thursday, May 28th. Ten research analysts have rated the stock with a Buy rating, twelve have given a Hold rating and four have issued a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of "Hold" and a consensus target price of $125.27.

Key Stories Impacting Dollar Tree

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

• Positive Sentiment: Dollar Tree reported second-quarter revenue of approximately $4.9 billion, up 7.0% year over year and slightly above Wall Street expectations. Comparable-store sales increased 3.7%, supported by higher average ticket and modestly increased customer traffic. Dollar Tree beats quarterly revenue estimates on steady demand
• Positive Sentiment: Adjusted diluted EPS reached $2.70, far exceeding the $1.15 analyst consensus. Operating income rose to $690.1 million from $231.0 million, while the operating margin expanded by 900 basis points to 14.1%. Dollar Tree Q2 Revenue Rises 7% as Diluted EPS Reaches $2.70
• Positive Sentiment: Management raised fiscal 2026 adjusted EPS guidance to $7.70–$8.05 from $6.70–$7.10 and repurchased $605 million of stock during the quarter. Dollar Tree Lifts Earnings Outlook After Notching Higher Profit
• Neutral Sentiment: Dollar Tree projected third-quarter sales of $5.0 billion–$5.1 billion and diluted EPS of $0.80–$0.95. Investors may focus on whether the forecast supports the sharply higher full-year outlook.
• Negative Sentiment: The stock had already advanced about 43% over the prior three months and was approaching technical resistance near $141.50, increasing the potential for profit-taking even after the earnings beat. Stock of the Day: Is this the Top for Dollar Tree?
• Negative Sentiment: Recent ownership data was mixed: some large institutions increased positions, while others reduced holdings; an insider also sold a substantial block of shares. These transactions could add to near-term caution but do not alter the quarter’s operating results.

Institutional Trading of Dollar Tree

Several hedge funds have recently added to or reduced their stakes in DLTR. Cetera Investment Advisers boosted its holdings in Dollar Tree by 0.4% in the 4th quarter. Cetera Investment Advisers now owns 21,420 shares of the company's stock valued at $2,635,000 after purchasing an additional 79 shares during the period. USS Investment Management Ltd increased its holdings in shares of Dollar Tree by 0.5% during the 4th quarter. USS Investment Management Ltd now owns 23,418 shares of the company's stock worth $2,880,000 after purchasing an additional 106 shares during the period. Janney Montgomery Scott LLC raised its position in shares of Dollar Tree by 0.4% during the fourth quarter. Janney Montgomery Scott LLC now owns 28,853 shares of the company's stock valued at $3,549,000 after buying an additional 116 shares during the last quarter. Vident Advisory LLC lifted its stake in shares of Dollar Tree by 1.3% in the third quarter. Vident Advisory LLC now owns 9,727 shares of the company's stock valued at $918,000 after buying an additional 121 shares during the period. Finally, Quadrant Capital Group LLC lifted its stake in shares of Dollar Tree by 1.8% in the fourth quarter. Quadrant Capital Group LLC now owns 8,691 shares of the company's stock valued at $1,069,000 after buying an additional 156 shares during the period. Institutional investors own 97.40% of the company's stock.

About Dollar Tree

Dollar Tree, Inc is a North American discount retailer that operates a portfolio of value-oriented store banners, primarily Dollar Tree and Family Dollar. The company's stores offer a broad assortment of everyday items at low price points, including household essentials, food and snacks, health and beauty products, cleaning supplies, seasonal and party goods, home décor, and basic apparel. Dollar Tree's merchandising strategy emphasizes high-turnover branded and private-label merchandise tailored to budget-conscious consumers, with Family Dollar complementing the chain by offering a wider range of price points and assortment depth in smaller-format neighborhood locations.

Founded in 1986 and headquartered in Chesapeake, Virginia, Dollar Tree has grown through both organic store openings and acquisitions.

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