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's Q2 FY2026 results cover the 13 weeks ended August 1, 2026, a period defined by the initial receipt of IEEPA tariff refunds and continued execution of its standalone strategy following the Family Dollar sale. Net sales rose 7.0% as comparable store net sales increased 3.7%, and gross margin expanded sharply after the company recognized $368.7 million of tariff refunds in cost of sales. Operating income also benefited from a lower selling, general and administrative expense rate. The improvement relied heavily on a one-time benefit, and management expects additional tariff-refund reinvestment costs and freight expenses in the second half of fiscal 2026, with continued tariff uncertainty.
Revenue
$4.89B
+7.02% YoY
EPS (Diluted)
$2.70
+196.70% YoY
Operating Income
$690.1M
+198.74% YoY
Source: SEC XBRL
Dollar Tree (DLTR) reported Q2 FY2026 revenue of $4.89B, up 7.0% year over year. Operating margin was 14.1%, up 9.0 points from 5.1% a year earlier. DLTR's fiscal Q2 FY2026 corresponds to calendar Q3 2026.
Last 4 quarters: 3 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| 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% |
| Sep 2025 | 0.57 | 0.42 | Beat +36.8% |
Compiled by AI from 10-Q Item 2 of this filing
The company recognized $368.7 million of IEEPA tariff refunds in cost of sales and $14 million of interest in other income during Q2 FY2026, after submitting claims totaling $379 million; remaining refunds are not expected to be material.
Source: 10-Q Item 2 MD&A
Comparable store net sales rose 3.7% in Q2 FY2026, driven by a 3.3% increase in average ticket and 0.4% increase in traffic, as targeted retail price changes and multi-price penetration lifted ticket.
Source: 10-Q Item 2 MD&A
The company has rolled out its expanded multi-price assortment to the substantial majority of stores and is expanding customer access through partnerships with Instacart, Uber Eats, and DoorDash.
Source: 10-Q Item 2 MD&A
Management expects additional costs in the third and fourth quarters of fiscal 2026 related to tariff refund reinvestment initiatives, including additional markdowns and higher freight expenses, and plans to direct about $40 million to a philanthropic fund.
Source: 10-Q Item 2 MD&A
Dollar Tree ended the quarter with 9,436 stores after opening 188 new stores in the first 26 weeks, and net sales per selling square foot increased to $243 from $237 over the trailing 52 weeks.
Source: 10-Q Item 2 MD&A
Compiled by AI from this SEC filing · 2 high, 3 medium, 0 low
Debt-to-equity was 3.10 at quarter-end, and long-term debt increased 20.7% year over year to $2,933.5 million. Financing cash flow used $723.8 million over the first 26 weeks, leaving less cushion for debt service if earnings normalize.
Source: 10-Q Balance Sheet (XBRL)
Current assets of $3,744.6 million cover current liabilities of $3,303.1 million, yielding a current ratio of 1.13. This indicates a limited short-term liquidity buffer relative to obligations.
Source: 10-Q Balance Sheet (XBRL)
Share buybacks totaled $1,208.9 million in the first 26 weeks, up 30.8% year over year, while stockholders' equity declined 5.0% to $3,425.3 million. Returning capital at this pace may further reduce equity and increase leverage.
Source: 10-Q Cash Flow Statement (XBRL)
The sharp year-over-year increases in operating income (+198.7%) and gross profitability were driven by a year-over-year decline in cost of revenue of 6.8% despite revenue growth of 7.0%, which may not be sustainable if tariff or cost conditions reverse.
Source: 10-Q Income Statement (XBRL)
SG&A expense increased 5.6% year over year to $1,426.6 million even as management pursues cost discipline, and total liabilities rose 8.4% to $10,604.3 million. If expense growth outpaces sales growth, operating margin gains could erode.
Source: 10-Q Income Statement (XBRL)
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 4.89 $B | 4.57 $B | +7.02% |
Cost of Revenue $B | 2.79 $B | 3.00 $B | -6.82% |
Operating Income $M | 690.10 $M | 231.00 $M | +198.74% |
Net Income $M | 514.50 $M | 188.40 $M | +173.09% |
EPS (Basic) $ | 2.70 $ | 0.91 $ | +196.70% |
EPS (Diluted) $ | 2.70 $ | 0.91 $ | +196.70% |
SG&A Expense $B | 1.43 $B | 1.35 $B | +5.62% |
Answers draw on this SEC filing and the data on this page
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.
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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