Dollar General Corporation (DG) Q2 2026 Financial Results Summary
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Dollar General Corporation (DG) Q2 2026: Strong Growth Across Metrics — Positive Outlook
Dollar General Corporation (NYSE: DG) reported a robust second quarter for fiscal year 2026, with net sales increasing by $600 million or +5.2% year-over-year, reaching $11.3 billion compared to $10.7 billion in the same quarter last year. This performance reflects a solid execution of its growth strategy and a favorable market environment.
Key Financial Metrics
- Net Sales: Increased by $600 million or +5.2% YoY to $11.3 billion
- Same-Store Sales: Increased by 3.5%
- Operating Profit: Increased by $173.8 million or +29.2% to $769.2 million
- Diluted Earnings Per Share (EPS): Increased by $0.62 or +33.3% to $2.48
- Net Income: Increased by $138.9 million or +33.8% to $550.3 million
- Gross Profit Margin: Increased to 32.6% from 31.3% YoY
Analyst Opinion
This quarter is a positive outcome for shareholders, showcasing significant growth in both revenue and profitability. The increase in diluted EPS to $2.48, which includes an estimated benefit from tariff refunds of approximately $0.25, indicates strong operational efficiency and effective cost management. The company’s ability to expand its operating profit margin, alongside a healthy increase in same-store sales, reflects a well-executed strategy that resonates with consumers, particularly in the current economic climate.
Dividend and Share Buyback
The Board of Directors declared a quarterly cash dividend of $0.59 per share, payable on or before October 20, 2026, to shareholders of record on October 6, 2026. Additionally, Dollar General announced its intention to repurchase shares under its existing program, with a total remaining authorization for future repurchases of $1.4 billion. This commitment to returning capital to shareholders is a positive signal of the company's financial health and confidence in its future performance.
Guidance Update
- Net Sales Growth: Approximately 4.0% to 4.3%, up from a previous range of 3.7% to 4.2%
- Same-Store Sales Growth: Approximately 2.5% to 2.9%, up from a previous range of 2.2% to 2.7%
- Diluted EPS: Expected in the range of $7.80 to $8.00, increased from $7.20 to $7.45
This upward revision in guidance reflects the company’s strong performance in the first half of the year and an optimistic outlook for the remainder of fiscal 2026.
Forward-Looking Catalysts
Investors should watch for continued momentum in customer traffic and same-store sales growth as Dollar General executes its strategic initiatives, including the opening of approximately 450 new stores in the U.S. and 10 in Mexico. The company’s ongoing remodeling projects, such as Project Renovate and Project Elevate, are also expected to enhance the shopping experience and drive further sales growth.
In conclusion, Dollar General's second quarter results demonstrate a strong operational performance and a positive outlook for the remainder of the fiscal year. The combination of increased sales, improved profitability, and a commitment to returning value to shareholders positions the company favorably in the retail sector.
Note: All amounts in the following tables are in thousands or millions.
DOLLAR GENERAL CORPORATION AND SUBSIDIARIES - Consolidated Statements of Income
(In thousands, except per share amounts)
(Unaudited)
| For the Quarter Ended | % of Net Sales | August 1, 2025 | For the 26 Weeks Ended | % of Net Sales | August 1, 2025 | |
|---|---|---|---|---|---|---|
| Net Sales | $ 11,290,303 | 100.0 % | $ 10,727,920 | $ 22,077,345 | 100.00 % | $ 21,163,716 |
| Cost of Goods Sold | $ 7,605,390 | 67.40 | $ 7,363,047 | $ 14,981,657 | 67.88 | $ 14,578,225 |
| Gross Profit | $ 3,684,913 | 32.60 | $ 3,364,873 | $ 7,095,688 | 32.12 | $ 6,585,491 |
| Selling, General and Administrative Expenses | $ 2,910,225 | 25.79 | $ 2,765,474 | $ 5,683,477 | 25.74 | $ 5,421,237 |
| Operating Profit | $ 769,684 | 6.81 | $ 595,399 | $ 1,412,211 | 6.38 | $ 1,171,106 |
| Interest Expense | $ 42,879 | 0.38 | $ 57,704 | $ 90,121 | 0.41 | $ 122,353 |
| Income Before Income Tax | $ 726,805 | 6.43 | $ 537,695 | $ 1,322,090 | 5.97 | $ 1,048,753 |
| Income Tax Expense | $ 175,237 | 1.56 | $ 126,457 | $ 323,134 | 1.46 | $ 245,885 |
| Net Income | $ 550,568 | 4.87 % | $ 411,238 | $ 994,456 | 4.50 % | $ 803,368 |
| Earnings Per Share | ||||||
| Basic Earnings Per Share | $ 2.49 | $ 1.87 | ||||
| Diluted Earnings Per Share | $ 2.48 | $ 1.86 | ||||
| Weighted-Average Shares Used to Compute Net Income Per Share, Basic | 220,383 | 220,007 | 220,456 | 220,444 | ||
| Weighted-Average Shares Used to Compute Net Income Per Share, Diluted | 221,620 | 220,444 | 221,508 | 220,737 |
DOLLAR GENERAL CORPORATION AND SUBSIDIARIES - Consolidated Balance Sheets
(In thousands)
(Unaudited)
| January 30, 2026 | July 31, 2026 | August 1, 2025 | |
|---|---|---|---|
| ASSETS | |||
| Current Assets | |||
| Cash and Cash Equivalents | $ 1,589,583 | $ 1,589,590 | $ 1,284,567 |
| Merchandise Inventories | $ 6,552,861 | $ 6,552,839 | $ 6,609,581 |
| Income Taxes Receivable | $ 75,422 | $ 75,422 | $ 81,728 |
| Prepaid Expenses and Other Current Assets | $ 564,058 | $ 564,058 | $ 422,694 |
| Total Current Assets | $ 8,781,924 | $ 8,781,924 | $ 8,398,643 |
| Net Property and Equipment | $ 6,623,819 | $ 6,623,843 | $ 6,398,023 |
| Operating Lease Assets | $ 11,150,222 | $ 11,150,222 | $ 11,262,194 |
| Goodwill | $ 4,338,540 | $ 4,338,540 | $ 4,338,540 |
| Other Intangible Assets, net | $ 1,200,000 | $ 1,200,000 | $ 1,199,706 |
| Other Assets, net | $ 72,478 | $ 72,478 | $ 55,796 |
| Total Assets | $ 32,167,125 | $ 32,167,125 | $ 31,653,037 |
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||
| Current Liabilities | |||
| Current Portion of Long-Term Obligations | $ 12,670 | $ 12,670 | $ 19,326 |
| Current Portion of Operating Lease Liabilities | $ 1,572,094 | $ 1,572,094 | $ 1,502,568 |
| Accounts Payable | $ 4,349,554 | $ 4,349,554 | $ 3,970,670 |
| Accrued Expenses and Other Liabilities | $ 1,314,122 | $ 1,314,122 | $ 1,197,818 |
| Income Taxes Payable | $ 16,677 | $ 16,677 | $ 11,292 |
| Total current liabilities | $ 7,265,256 | $ 7,265,256 | $ 6,701,569 |
| Long-Term Obligations | $ 4,558,127 | $ 4,558,127 | $ 5,725,700 |
| Long-Term Operating Lease Liabilities | $ 9,630,239 | $ 9,630,239 | $ 9,820,205 |
| Deferred Income Taxes | $ 1,120,878 | $ 1,120,878 | $ 1,127,706 |
| Other Liabilities | $ 304,308 | $ 304,308 | $ 265,484 |
| Total Liabilities | $ 22,878,731 | $ 22,878,731 | $ 23,640,882 |
| Commitments and Contingencies | |||
| Shareholders' Equity | |||
| Preferred Stock | - | - | - |