Dollar General (NYSE:DG) Issues Earnings Results, Beats Estimates By $0.47 EPS

Dollar General (NYSE:DG) announced its quarterly earnings data on Thursday. The company reported $2.48 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.01 by $0.47, FiscalAI reports. Dollar General had a return on equity of 18.93% and a net margin of 3.90%.The business had revenue of $11.29 billion during the quarter, compared to analysts’ expectations of $11.20 billion. During the same quarter in the previous year, the business earned $1.86 earnings per share. The firm’s quarterly revenue was up 5.2% compared to the same quarter last year. Dollar General updated its FY 2026 guidance to 7.800-8.000 EPS.

Here are the key takeaways from Dollar General’s conference call:

• Positive Sentiment: Dollar General reported a strong second quarter, with same-store sales up 3.5%, traffic up 2%, operating profit up 29.2%, and EPS up 33% to $2.48. Management said sales and market-share gains were broad-based, with non-consumables outperforming consumables.
• Positive Sentiment: The company raised its fiscal 2026 outlook to 4.0%–4.3% net sales growth, 2.5%–2.9% same-store sales growth, and EPS of $7.80–$8.00. The guidance includes an approximately $0.25 tariff-refund benefit recorded in the second quarter.
• Positive Sentiment: Dollar General plans to resume share repurchases in the third quarter, targeting up to $700 million of buybacks in the second half using cash on hand. Management said the earlier-than-planned restart reflects stronger liquidity and progress toward its leverage targets.
• Positive Sentiment: Gross margin expanded 127 basis points, supported by tariff refunds, lower LIFO costs, supply-chain efficiencies, and improving shrink and damages. Management expects further gross-margin expansion in the second half, although elevated fuel costs remain a headwind.
• Neutral Sentiment: Management described low-income customers as financially strained by persistent inflation and volatile fuel prices, while middle- and higher-income customers continue to trade down. Value Valley sales rose more than 16%, delivery contributed about 40 basis points to quarterly comps, and the company continues expanding remodels, new stores, and digital initiatives.

Dollar General Price Performance

NYSE DG opened at $122.57 on Friday. The company has a quick ratio of 0.25, a current ratio of 1.21 and a debt-to-equity ratio of 0.49. Dollar General has a 52 week low of $95.11 and a 52 week high of $158.23. The firm has a market capitalization of $27.04 billion, a P/E ratio of 15.94, a PEG ratio of 1.78 and a beta of 0.23. The company has a 50-day moving average price of $121.41 and a 200-day moving average price of $123.16.

Dollar General Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, October 20th. Stockholders of record on Tuesday, October 6th will be given a dividend of $0.59 per share. The ex-dividend date of this dividend is Tuesday, October 6th. This represents a $2.36 annualized dividend and a dividend yield of 1.9%. Dollar General’s dividend payout ratio is presently 33.38%.

Hedge Funds Weigh In On Dollar General

Institutional investors and hedge funds have recently bought and sold shares of the stock. Parkside Financial Bank & Trust increased its position in Dollar General by 9.3% in the fourth quarter. Parkside Financial Bank & Trust now owns 808 shares of the company’s stock worth $107,000 after buying an additional 69 shares in the last quarter. Strata Wealth Advisors LLC grew its stake in shares of Dollar General by 3.3% during the 4th quarter. Strata Wealth Advisors LLC now owns 2,367 shares of the company’s stock valued at $314,000 after acquiring an additional 75 shares during the period. Rexford Capital Inc. raised its stake in Dollar General by 2.1% during the 4th quarter. Rexford Capital Inc. now owns 3,859 shares of the company’s stock worth $512,000 after acquiring an additional 81 shares during the period. Brooks Moore & Associates Inc. lifted its position in shares of Dollar General by 1.3% in the third quarter. Brooks Moore & Associates Inc. now owns 7,590 shares of the company’s stock valued at $784,000 after acquiring an additional 100 shares in the last quarter. Finally, Insigneo Advisory Services LLC grew its position in shares of Dollar General by 5.6% during the fourth quarter. Insigneo Advisory Services LLC now owns 2,372 shares of the company’s stock worth $315,000 after purchasing an additional 125 shares in the last quarter. 91.77% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

A number of analysts have weighed in on the stock. BNP Paribas Exane raised their price objective on shares of Dollar General from $113.00 to $129.00 and gave the company a “neutral” rating in a research note on Friday. Weiss Ratings restated a “hold (c)” rating on shares of Dollar General in a report on Wednesday, July 8th. HSBC cut their target price on Dollar General from $141.00 to $125.00 and set a “hold” rating on the stock in a research note on Wednesday, June 3rd. The Goldman Sachs Group lifted their target price on Dollar General from $128.00 to $141.00 and gave the stock a “neutral” rating in a report on Friday. Finally, Raymond James Financial restated an “outperform” rating and issued a $150.00 price target on shares of Dollar General in a research note on Friday. Ten analysts have rated the stock with a Buy rating, eighteen have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of “Hold” and a consensus target price of $134.65.

More Dollar General News

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

• Positive Sentiment: Q2 results beat expectations: Net sales rose 5.2% year over year to approximately $11.3 billion, while diluted EPS increased 33.3% to $2.48, well above the roughly $2.01 consensus. Same-store sales grew 3.5%, supported by higher traffic and transaction values, and operating profit increased 29.2%. Dollar General Corporation Reports Second Quarter 2026 Results
• Positive Sentiment: Higher full-year guidance reinforces the turnaround: Dollar General raised fiscal 2026 EPS guidance to $7.80–$8.00 and lifted its comparable-sales outlook, citing steady demand for lower-priced essentials as consumers remain focused on value. UBS described the quarter as credible evidence of sustainable turnaround momentum. Dollar General raises annual comparable sales forecast on steady demand, shares jump
• Positive Sentiment: Analysts raised price targets: BMO increased its target to $135, Telsey to $140 and BNP Paribas Exane to $129. All retained market-perform or neutral ratings, indicating improved expectations but limited conviction for significant outperformance. The company also declared a $0.59 quarterly dividend and expects up to $700 million of fiscal-year share repurchases.
• Neutral Sentiment: AI investment could improve operations: DG is partnering with RELEX Solutions to deploy AI-based forecasting, replenishment and inventory-allocation tools across its North American store and distribution network. The initiative may improve product availability and margins, although benefits will depend on implementation. RELEX Solutions Announces Partnership with Dollar General
• Negative Sentiment: Consumer pressures and leadership transition remain risks: DG said its core lower-income shopper is closely managing every dollar, while higher-income customers are increasingly seeking value. Executive Vice President and General Counsel Rhonda Taylor also plans to retire, with a transition to Kelly Collier beginning in December. These factors may temper enthusiasm despite the earnings beat. Dollar General Announces General Counsel Retirement and Transition

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.