Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Fiscal 2026's second quarter for Dollar General reflects a period of accelerating same-store sales and meaningful gross margin expansion, while year-to-date operating cash flow lagged the prior year. Management attributes the margin improvement primarily to IEEPA tariff refunds, which were largely received during the quarter and reinvested into lower prices and promotions, with a net gross profit benefit of about 81 basis points after those reinvestments. Same-store sales rose 3.5% on higher traffic and average ticket, and net income and diluted EPS both grew strongly. The main tension is liquidity: year-to-date operating cash flow fell 17.5% amid higher inventory investment, even as the company expects to resume buybacks in the second half of fiscal 2026.
Revenue
$11.29B
+5.24% YoY
EPS (Diluted)
$2.48
+33.33% YoY
Gross Margin
32.6%
+1.3 pts YoY
Operating Income
$769.16M
+29.18% YoY
Source: SEC XBRL
Dollar General (DG) reported Q2 FY2026 revenue of $11.29B, up 5.2% year over year. Operating margin was 6.8%, up 1.2 points from 5.6% a year earlier. DG's fiscal Q2 FY2026 corresponds to calendar Q3 2026.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 2.00 | 1.94 | Beat +3.0% |
| Mar 2026 | 1.93 | 1.70 | Beat +13.7% |
| Dec 2025 | 1.28 | 0.97 | Beat +31.4% |
| Sep 2025 | 1.86 | 1.61 | Beat +15.2% |
Compiled by AI from 10-Q Item 2 of this filing
Same-store sales rose 3.5% in the 13-week period, up from 2.8% a year earlier, driven by a 2.0% increase in customer traffic and a 1.5% increase in average transaction amount. Growth was broad-based across consumables, seasonal, home products, and apparel.
Source: 10-Q Item 2 MD&A
The company began receiving cash refunds related to IEEPA tariffs during Q2 FY2026 and reinvested a substantial portion into promotional activities and lower everyday prices. The estimated net gross profit benefit from tariff refunds after related reinvestments was approximately 81 basis points.
Source: 10-Q Item 2 MD&A
Gross margin increased to 32.6% from 31.3% a year earlier, driven primarily by tariff refunds, a lower LIFO provision, and lower distribution costs, partially offset by increased markdowns and transportation costs.
Source: 10-Q Item 2 MD&A
Dollar General opened 126 new stores in Q2 FY2026, including one in Mexico, and ended the quarter with 21,148 stores. For fiscal 2026, the company plans approximately 450 new U.S. stores, 2,000 Project Renovate remodels, 2,250 Project Elevate remodels, and about 20 relocations.
Source: 10-Q Item 2 MD&A
Cash flow from operations was $1.50B for the first 26 weeks, down from $1.81B a year earlier. The company projects fiscal 2026 capital expenditures of approximately $1.4B to $1.5B and expects to resume share repurchases in the second half of fiscal 2026 under its $1.38B remaining authorization.
Source: 10-Q Item 2 MD&A
Compiled by AI from this SEC filing · 0 high, 5 medium, 0 low
Operating cash flow was $1.50B for the first 26 weeks, down 17.5% from $1.81B in the prior-year period, indicating reduced cash generation from operations. This could constrain funding for capital expenditures, dividends, and announced share repurchases.
Source: 10-Q Cash Flow Statement (XBRL)
Total liabilities stood at $22.88B against stockholders' equity of $9.29B, producing a debt-to-equity ratio of 2.46. This leverage may increase sensitivity to interest rates and limit financial flexibility.
Source: 10-Q Balance Sheet (XBRL)
Current assets were $8.78B versus current liabilities of $7.27B, yielding a current ratio of 1.21. With current liabilities up 8.4% year over year, the buffer to absorb short-term obligations remains limited.
Source: 10-Q Balance Sheet (XBRL)
Net margin was 4.87% and operating margin was 6.81% in Q2 FY2026, reflecting the low-margin nature of the discount retail model. Even modest cost or markdown pressure could have a meaningful effect on earnings.
Source: 10-Q Income Statement (XBRL)
Investing activities used $754.3M in the first 26 weeks, up 9.1% from the prior year, driven by ongoing store growth, remodels, and distribution/technology spending. Continued high capital investment may weigh on free cash flow.
Source: 10-Q Cash Flow Statement (XBRL)
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 11.29 $B | 10.73 $B | +5.24% |
Cost of Revenue $B | 7.61 $B | 7.37 $B | +3.30% |
Gross Profit $B | 3.68 $B | 3.36 $B | +9.50% |
Operating Income $M | 769.16 $M | 595.43 $M | +29.18% |
Net Income $M | 550.32 $M | 411.43 $M | +33.76% |
EPS (Basic) $ | 2.49 $ | 1.87 $ | +33.16% |
EPS (Diluted) $ | 2.48 $ | 1.86 $ | +33.33% |
SG&A Expense $B | 2.91 $B | 2.77 $B | +5.26% |
Answers draw on this SEC filing and the data on this page
Dollar General delivered stronger profitability in Q1 FY2026, with revenue up 3.4% to $10.79B and diluted EPS up 12.4% to $2.00, but operating cash flow declined 15.5% as working-capital movements and higher inventory investment consumed cash. Source: 10-Q Item 2 MD&A, pp.23-25.
Dollar General (DG) delivered a strong FY2025 with revenue growing 5.2% to $42.7B, net income surging 34.4% to $1.51B, and operating margin expanding nearly 1 percentage point to 5.16%, driven by improved gross margins and disciplined cost management.
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