Dollar General raises FY26 guidance following strong Q2 earnings

Dollar General reported strong second-quarter fiscal 2026 results, characterized by broad-based sales growth and improved profitability. Net sales rose 5.2% year-over-year to $11.29 billion, while same-store sales increased 3.5%, supported by a 2.0% rise in customer traffic.

Operating profit grew 29.2% to $769.2 million, with operating margins expanding to 6.81% from 5.55%. This improvement was partly driven by tariff refunds, which contributed approximately 81 basis points to the gross margin. GAAP net income increased 33.8% year-over-year to $550.3 million, resulting in a diluted earnings per share (EPS) of $2.48, which exceeded consensus estimates.

Following these results, the company raised its full-year fiscal 2026 guidance. Dollar General issued an EPS forecast of $7.80 to $8.00, surpassing the consensus estimate of $7.23. Revenue guidance for the full year was set between $44.4 billion and $44.6 billion.