Dollar General stock jumped 8.3% to $133.30 in premarket trading Thursday after the discount retailer posted a strong fiscal second quarter and raised its full-year outlook.
Dollar General Corporation, DG
The company earned $2.48 per share in the quarter ended July 31, up from $1.86 a year ago. Wall Street had expected just $2.01. Net sales came in at $11.3 billion, a 5.2% increase and a hair above the analyst consensus of $11.2 billion.
Same-store sales rose 3.5% from the prior year. Customer traffic climbed 2% while the average transaction size increased 1.5%.
$DG Q2’26 EARNINGS HIGHLIGHTS
🔹 Net Sales: $11.3B (Est. $11.19B) 🟢; +5.2% YoY
🔹 EPS: $2.48 (Est. $2.00) 🟢; +33.3% YoY
🔹 Same-Store Sales: +3.5%
🔹 Operating Profit: $769.2M; +29.2% YoY
🔹 Gross Margin: 32.6%; +127 bps YoYFY26 Guide Raised:
🔹 EPS: $7.80-$8.00 (Est. $7.39)… pic.twitter.com/eNTjb90iMo— Wall St Engine (@wallstengine) August 27, 2026
Dollar General also lifted its full-year profit guidance to $7.80 to $8.00 per share. That compares to its previous forecast of $7.20 to $7.45. The company now expects net sales growth of 4% to 4.3%, up from its earlier range of 3.7% to 4.2%.
Wall Street had been penciling in full-year earnings of around $7.40 per share, according to FactSet. The new guidance clears that bar by a wide margin.
The company raised its annual comparable sales forecast to a range of 2.5% to 2.9%, up from its prior guidance of 2.2% to 2.7%.
Despite the strong print, Dollar General stock had been under pressure heading into the report. The stock was down about 7.5% for the year as of Wednesday’s close.
The backdrop wasn’t easy. Gas prices remain elevated, which weighs more heavily on Dollar General’s core lower-income shoppers than on the broader population.
Walmart also cut prices aggressively in recent weeks, putting pressure on Dollar General to follow suit. That kind of margin squeeze is exactly what investors had been worried about.
Walmart’s own earnings last week disappointed on same-store sales, sending that stock to one of its worst days in years. Some feared Dollar General could face a similar outcome.
The company’s new CEO also still has work to do to win over investors who’ve been skeptical since the leadership change.
Despite all that, Dollar General’s bottom line has beaten expectations every quarter for more than a year.
Analysts don’t expect Dollar General’s earnings per share to return to double digits until fiscal 2031. The company earned over $10 per share annually between 2021 and 2023.
The value-seeking trend among consumers continues to work in Dollar General’s favor. Rising costs of living have pushed more shoppers to trade down, benefiting discount retailers.
Dollar General closed Wednesday up just 0.2% before the premarket surge on Thursday.
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