Dollar General (NYSE:DG) Releases Quarterly Earnings Results, Beats Expectations By $0.11 EPS

Dollar General (NYSE:DG) posted its quarterly earnings results on Tuesday. The company reported $2.00 earnings per share for the quarter, beating the consensus estimate of $1.89 by $0.11, FiscalAI reports. The firm had revenue of $10.79 billion for the quarter, compared to analyst estimates of $10.81 billion. Dollar General had a return on equity of 18.66% and a net margin of 3.54%.Dollar General’s quarterly revenue was up 3.4% on a year-over-year basis. During the same period in the previous year, the firm earned $1.78 earnings per share. Dollar General updated its FY 2026 guidance to 7.200-7.450 EPS.

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

• Dollar General beat Q1 expectations, with EPS rising 12.4% to $2 and operating profit up 10.8%, helped by 65 bps of gross margin expansion that more than offset weather and higher fuel costs.
• Same-store sales increased 2%, driven by 1.4% traffic growth and higher basket size, marking the fourth straight quarter of traffic gains and the fifth consecutive quarter of positive comp growth across all four merchandising categories.
• The company raised full-year 2026 guidance to net sales growth of 3.7%-4.2% and EPS of $7.20-$7.45, reflecting strong Q1 execution and continued momentum despite inflation, fuel costs, and tariff uncertainty.
• Management said its value proposition is attracting both core and higher-income shoppers, with the $1 price point and Value Valley outperforming strongly, while delivery and targeted promotions are adding incremental traffic and sales.
• The company continues to invest in margin and growth initiatives, including shrink reduction, DG Media Network, remodels, supply chain productivity, AI, and store expansion, while expecting fuel costs to stay elevated and promoting selectively.

Dollar General Trading Down 2.9%

Shares of Dollar General stock opened at $106.78 on Wednesday. The firm has a market capitalization of $23.52 billion, a PE ratio of 15.59, a price-to-earnings-growth ratio of 1.79 and a beta of 0.26. The company’s fifty day moving average price is $115.21 and its two-hundred day moving average price is $128.71. Dollar General has a 52-week low of $95.11 and a 52-week high of $158.23. The company has a debt-to-equity ratio of 0.54, a current ratio of 1.13 and a quick ratio of 0.22.

Dollar General Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, July 21st. Shareholders of record on Tuesday, July 7th will be paid a dividend of $0.59 per share. The ex-dividend date is Tuesday, July 7th. This represents a $2.36 dividend on an annualized basis and a yield of 2.2%. Dollar General’s payout ratio is currently 34.45%.

Analysts Set New Price Targets

A number of brokerages recently commented on DG. Jefferies Financial Group lowered their price objective on shares of Dollar General from $170.00 to $155.00 and set a “buy” rating on the stock in a research report on Monday, May 18th. KeyCorp reissued a “sector weight” rating on shares of Dollar General in a research report on Friday, March 13th. Gordon Haskett downgraded shares of Dollar General from a “buy” rating to a “hold” rating and lowered their target price for the stock from $140.00 to $110.00 in a research report on Friday, May 22nd. Oppenheimer cut their price objective on Dollar General from $170.00 to $150.00 and set an “outperform” rating on the stock in a research note on Friday, May 29th. Finally, Evercore decreased their target price on Dollar General from $145.00 to $144.00 in a research report on Tuesday, March 3rd. Twelve analysts have rated the stock with a Buy rating, fifteen have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Hold” and an average target price of $139.38.

Hedge Funds Weigh In On Dollar General

A number of hedge funds have recently modified their holdings of DG. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its stake in Dollar General by 4.7% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 26,317 shares of the company’s stock worth $2,314,000 after acquiring an additional 1,185 shares in the last quarter. NewEdge Advisors LLC grew its holdings in shares of Dollar General by 12.3% during the first 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 last quarter. Woodline Partners LP grew its holdings in Dollar General by 40.7% during the 1st quarter. Woodline Partners LP now owns 18,580 shares of the company’s stock worth $1,634,000 after acquiring an additional 5,373 shares during the last quarter. Sivia Capital Partners LLC acquired a new stake in Dollar General in the 2nd quarter valued at about $211,000. Finally, Jump Financial LLC bought a new position in shares of Dollar General in the second quarter worth about $209,000. 91.77% of the stock is owned by institutional investors and hedge funds.

Key Headlines Impacting Dollar General

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

• Positive Sentiment: Dollar General raised its fiscal 2026 profit guidance to $7.20-$7.45 per share after Q1 results came in stronger than expected. Reuters article
• Positive Sentiment: Traffic trends improved and margin discipline helped offset weather- and fuel-related pressures, suggesting the company is gaining operating leverage. Zacks article
• Positive Sentiment: The company reaffirmed that discount demand remains resilient as cost-conscious shoppers continue seeking lower-priced essentials. Business Wire article
• Neutral Sentiment: Dollar General announced a quarterly dividend of $0.59 per share, which supports the income profile but is not the main stock driver today. TipRanks article
• Negative Sentiment: Some reports highlighted a slight revenue miss versus expectations and persistent pressure from higher gas prices and reduced SNAP benefits, which could temper enthusiasm. MarketWatch article

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.