Dollar General: Beating Estimates, Bracing for the Impact
Behind the Q1 2026 Beat
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Dollar General ( DG 0.00%↑ ) beat the Street, with strong free cash flow, and raised guidance. But under the hood, they’re quietly preparing for a tougher second half - trimming CapEx, tightening inventory, and flagging tariff turbulence.
Here is the synopsis of DG 0.00%↑’s earnings analysis from 10Q, and noteworthy statements during the earnings call.
Income Statement Summary
Revenue rose 11.8% YoY to $10.44 billion, driven by higher average ticket size, up 2.7%, even as store traffic slipped slightly. Gross margins improved to 28.9%, due to tighter inventory controls and favorable category mix.
Operating income jumped nearly 25%, and net income surged 36% to $337 million. EPS came in at $1.78, a 59% YoY jump, boosted by share buybacks and leverage on fixed costs.