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
Dollar Tree delivered stronger Q1 FY2026 operating performance, with total revenue up 7.2% to $5.0B, gross margin up 120 basis points to 36.8%, and operating income up 23.2% to $473.3M, although traffic declined 1.0% and net-income growth was limited by the absence of a prior-year insurance gain. Source: 10-Q Item 2 MD&A, pp.19, 22-24.
Revenue
$4.98B
+7.24% YoY
EPS (Diluted)
$1.76
+9.32% YoY
Operating Income
$473.3M
+23.22% YoY
Source: SEC XBRL
Dollar Tree (DLTR) reported Q1 FY2026 revenue of $4.98B, up 7.2% year over year. Operating margin was 9.5%, up 1.2 points from 8.3% a year earlier. DLTR's fiscal Q1 FY2026 corresponds to calendar Q2 2026.
Last 4 quarters: 3 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Sep 2026 | 2.70 | 1.16 | Beat +131.9% |
| Jun 2026 | 1.74 | 1.57 | Beat +10.6% |
| Mar 2026 | 2.56 | 2.58 | Miss -0.6% |
| Dec 2025 | 1.21 | 1.11 | Beat +8.6% |
Compiled by AI from 10-Q Item 2 of this filing
Net sales increased 7.2% to $4.97B, supported by a 3.5% comparable-store sales increase and $259.0M of sales from non-comparable stores. Comparable sales growth reflected a 4.5% increase in average ticket, partly offset by a 1.0% decline in customer traffic; management attributed the higher ticket to targeted price changes and greater multi-price assortment penetration.
Source: 10-Q Item 2 MD&A
Gross profit rose 10.9% to $1.83B and gross margin increased 120 basis points to 36.8%. Management attributed the improvement primarily to pricing-related mark-on, lower import freight costs, and lower shrink, partly offset by higher tariff costs and markdowns; operating income consequently rose 23.2% to $473.3M and operating margin reached 9.5%.
Source: 10-Q Item 2 MD&A
SG&A increased 9.0% to $1.38B, and its rate rose 50 basis points to 27.8% of total revenue. The increase reflected marketing investment, higher general-liability claims costs, and store-investment depreciation, partly offset by lower payroll expenses associated with less temporary labor, lower corporate payroll, and lower incentive compensation.
Source: 10-Q Item 2 MD&A
Dollar Tree recorded $21.1M of net transition-services-agreement income from services provided to Family Dollar following its sale. Conversely, other income fell to $5.4M from $61.7M because the prior-year quarter included a substantially larger Marietta, Oklahoma distribution-center insurance gain; the current-quarter insurance gain was $5.2M versus $62.0M a year earlier.
Source: 10-Q Item 2 MD&A
Operating cash flow from continuing operations increased to $644.0M from $378.5M, mainly due to higher income, accounts-payable timing, and lower inventory. Dollar Tree also borrowed $500.0M under a new term loan, repurchased $600.4M of stock during the quarter, and had $1.3B remaining under its authorization as of May 2, 2026.
Source: 10-Q Item 2 MD&A
Compiled by AI from this SEC filing · 0 high, 4 medium, 1 low
Long-term debt increased 20.7% year over year to $2.93B, while stockholders' equity declined 10.2% to $3.51B. The resulting debt-to-equity ratio was 2.94x, indicating that debt is substantial relative to the equity capital base.
Source: 10-Q Balance Sheet (XBRL)
The current ratio was 1.16x, with $3.70B of current assets against $3.18B of current liabilities. Although current assets exceeded current liabilities, the margin of short-term asset coverage was limited.
Source: 10-Q Balance Sheet (XBRL)
Comparable-store sales grew 3.5%, but customer traffic declined 1.0%; growth instead came from a 4.5% increase in average ticket. Continued traffic declines could make revenue growth more dependent on ticket growth and new-store sales.
Source: 10-Q Item 2 MD&A
Management reported that higher tariff costs and higher markdowns partially offset gross-margin benefits from pricing, freight, and shrink improvements. The filing also states that the tariff environment remains fluid and that margins and operating results could vary significantly.
Source: 10-Q Item 2 MD&A
Dollar Tree repurchased $600.4M of common stock during Q1 FY2026, while long-term debt was $2.93B, up 20.7% year over year. This capital allocation reduces cash or borrowing capacity that could otherwise support operations, investment, or debt reduction.
Source: 10-Q Item 2 MD&A; 10-Q Balance Sheet (XBRL)
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 4.98 $B | 4.64 $B | +7.24% |
Cost of Revenue $B | 3.14 $B | 2.99 $B | +5.16% |
Operating Income $M | 473.30 $M | 384.10 $M | +23.22% |
Net Income $M | 347.30 $M | 343.40 $M | +1.14% |
EPS (Basic) $ | 1.76 $ | 1.61 $ | +9.32% |
EPS (Diluted) $ | 1.76 $ | 1.61 $ | +9.32% |
SG&A Expense $B | 1.38 $B | 1.27 $B | +8.99% |
Answers draw on this SEC filing and the data on this page
Dollar Tree's Q2 FY2026 net income jumped 173.1% as $368.7 million of tariff refunds and 3.7% comparable store sales growth lifted margins, though management flagged upcoming reinvestment costs and tariff uncertainty.
Dollar Tree (DLTR) delivered strong FY2025 results with revenue growing 10.4% to $19.4B and net income swinging to a $1.28B profit from a prior-year loss of $3.03B, driven by improved margins and operational efficiency.
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