Dollar General (NYSE:DG) Announces Quarterly Earnings Results, Beats Expectations By $0.36 EPS

Dollar General (NYSE:DG) released its quarterly earnings data on Thursday. The company reported $1.93 EPS for the quarter, beating analysts’ consensus estimates of $1.57 by $0.36, FiscalAI reports. Dollar General had a net margin of 3.54% and a return on equity of 18.98%. The company had revenue of $10.91 billion during the quarter, compared to the consensus estimate of $10.78 billion. During the same quarter in the prior year, the firm earned $0.87 EPS. Dollar General’s quarterly revenue was up 5.9% on a year-over-year basis. Dollar General updated its FY 2026 guidance to 7.100-7.35 EPS.

Here are the key takeaways from Dollar General’s conference call:

• Strong Q4 and FY 2025 results: Q4 net sales rose 5.9% to $10.9B with same-store sales +4.3%, EPS up 122% to $0.93 and management said results were “well ahead” of expectations, supported by three consecutive quarters of traffic growth.
• Meaningful margin improvement driven by shrink and inventory actions: Gross margin expanded ~105 bps in Q4 (107 bps for the year) due largely to a ~80 bps reduction in shrink and lower inventory; management expects ~50 bps more from shrink/damages and at least 120 bps total gross margin improvement from initiatives over the next 3–4 years.
• Clear growth strategy and digital acceleration: Dollar General outlined four strategic pillars (customer experience, brand, efficiencies, extend reach), plans ~450 new U.S. stores in 2026 (581 opened in 2025), large remodel programs, a push to grow non-consumables (targeting up to 20% penetration by 2029), expanding delivery (~18,000 stores) and a $170M DG Media Network.
• 2026 guidance and near-term headwinds: Outlook calls for net sales growth of 3.7–4.2%, comps 2.2–2.7% and EPS $7.10–7.35, but management expects modest SG&A deleveraging, a higher ~25% tax rate (including a ~150 bp headwind from expiration of the Work Opportunity Tax Credit, ~$0.13 EPS), and Q1 disruption from winter storms.
• Strong cash generation and disciplined capital allocation: Operating cash flow was $3.6B (+21%), the company redeemed $1.7B of senior notes and kept the quarterly dividend at $0.59, but management does not assume share repurchases in 2026 (repurchases expected to resume when appropriate, model contemplates restart in 2027).

Dollar General Trading Down 3.2%

DG opened at $131.63 on Friday. The stock has a market capitalization of $28.97 billion, a PE ratio of 19.22, a P/E/G ratio of 2.23 and a beta of 0.23. Dollar General has a one year low of $77.52 and a one year high of $158.23. The company has a debt-to-equity ratio of 0.63, a quick ratio of 0.24 and a current ratio of 1.17. The business’s 50 day moving average price is $147.70 and its 200 day moving average price is $123.62.

Dollar General Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, April 21st. Investors of record on Tuesday, April 7th will be issued a $0.59 dividend. The ex-dividend date is Tuesday, April 7th. This represents a $2.36 dividend on an annualized basis and a yield of 1.8%. Dollar General’s dividend payout ratio is currently 40.76%.

Analyst Ratings Changes

A number of equities research analysts have recently issued reports on DG shares. Oppenheimer upped their price target on Dollar General from $145.00 to $170.00 and gave the company an “outperform” rating in a research report on Tuesday, February 24th. Sanford C. Bernstein reiterated an “outperform” rating on shares of Dollar General in a research report on Friday. Telsey Advisory Group boosted their price objective on Dollar General from $130.00 to $140.00 and gave the stock a “market perform” rating in a research note on Monday, March 9th. Argus upped their target price on Dollar General from $135.00 to $152.00 and gave the company a “buy” rating in a report on Thursday, December 18th. Finally, Wolfe Research reaffirmed an “outperform” rating and issued a $165.00 target price on shares of Dollar General in a research note on Thursday. Fourteen research analysts have rated the stock with a Buy rating, fifteen have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company has an average rating of “Hold” and an average price target of $145.52.

Trending Headlines about Dollar General

Here are the key news stories impacting Dollar General this week:

• Positive Sentiment: Q4 results materially beat expectations — revenue of ~$10.9B (+5.9% YoY), same-store sales up 4.3% and GAAP EPS of $1.93, with margin expansion that management attributes to cost controls and store efforts. This underpins near-term fundamentals. DG Q4 Deep Dive
• Positive Sentiment: Institutional investors have been buyers on the dip and technicals showed quick support after the drop, suggesting a base for a rebound if forward signals improve. MarketBeat: Holds Its Ground
• Positive Sentiment: Management continues returning capital (quarterly dividend announced) and highlighted balance-sheet improvements and margin momentum, which supports long-term cash returns. BusinessWire: Q4 Results
• Neutral Sentiment: Store-footprint rationalization: DG closed hundreds of locations after evaluating its footprint — a drag in the near term but positioned to improve profitability and comps over time. FastCompany: Store Closures
• Neutral Sentiment: Dollar General has outperformed the Dow over the past year, but analysts are cautious — the setup is mixed: upside potential exists but may require follow-through later in 2026. Barchart: Outperforming the Dow?
• Negative Sentiment: Guidance disappointed: management offered a more muted 2026 sales/same-store-sales outlook than some had modeled, which is the primary reason investors sold the stock despite the beat. Yahoo: Why DG Is Down
• Negative Sentiment: Mixed analyst responses and price-target moves — several firms trimmed targets or kept hold/neutral ratings (some smaller upward adjustments), leaving near-term sentiment mixed and limiting immediate upside. Benzinga: Analyst Coverage
• Negative Sentiment: Broader market weakness (oil-driven risk-off and equity declines) amplified selling pressure across retail names, exacerbating DG’s pullback after the cautious guide. Yahoo: Market Headwinds

Insiders Place Their Bets

In other news, EVP Rhonda Taylor sold 7,500 shares of the company’s stock in a transaction on Tuesday, December 16th. The stock was sold at an average price of $134.89, for a total value of $1,011,675.00. Following the transaction, the executive vice president owned 73,492 shares of the company’s stock, valued at $9,913,335.88. This represents a 9.26% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, EVP Roderick J. West sold 2,282 shares of the stock in a transaction on Tuesday, December 16th. The stock was sold at an average price of $133.35, for a total value of $304,304.70. Following the transaction, the executive vice president owned 36,108 shares of the company’s stock, valued at approximately $4,815,001.80. This represents a 5.94% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 19,558 shares of company stock valued at $2,638,868 over the last quarter. 0.56% of the stock is owned by insiders.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the stock. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its holdings in shares of Dollar General by 4.7% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 26,317 shares of the company’s stock worth $2,314,000 after acquiring an additional 1,185 shares during the last quarter. NewEdge Advisors LLC increased its holdings in Dollar General by 12.3% in the 1st quarter. NewEdge Advisors LLC now owns 10,450 shares of the company’s stock valued at $919,000 after purchasing an additional 1,148 shares during the last quarter. Woodline Partners LP increased its holdings in Dollar General by 40.7% in the 1st quarter. Woodline Partners LP now owns 18,580 shares of the company’s stock valued at $1,634,000 after purchasing an additional 5,373 shares during the last quarter. Sivia Capital Partners LLC purchased a new stake in Dollar General in the second quarter valued at approximately $211,000. Finally, Jump Financial LLC purchased a new stake in Dollar General in the second quarter valued at approximately $209,000. Institutional investors and hedge funds own 91.77% of the company’s stock.

About Dollar General

Dollar General Corporation is a U.S.-based variety and discount retailer operating a large network of small-format stores that serve primarily rural and suburban communities. The company is publicly traded on the New York Stock Exchange under the ticker DG and is headquartered in the Nashville/Goodlettsville, Tennessee area. Founded in 1939, Dollar General has grown from a regional operation into one of the nation’s prominent low-price retailers focused on convenience and value.

Dollar General’s stores offer a wide assortment of everyday consumables and household goods, including food and beverage items, cleaning supplies, health and beauty products, paper goods, apparel basics, seasonal merchandise and small household items.