10-Q · May 28, 2026
Dollar Tree reported a solid Q1 2026 performance with revenues of $4.64 billion, exhibiting a 14% decline year-over-year from Q1 2025. Diluted EPS increased to $1.61, up from $1.08 in the previous quarter, reflecting a…
Earnings analysis · 10-Q
DLTR earnings analysis
Filed August 27, 2026 · Our reading of the company's report
The latest report
Dollar Tree delivered a strong quarter, with $4.891 billion of revenue and $2.70 diluted EPS, beating consensus by $48 million and $1.67, respectively. Gross margin rose to 42.9% and operating margin to 14.1%, while…
Read full summary
Dollar Tree delivered a strong quarter, with $4.891 billion of revenue and $2.70 diluted EPS, beating consensus by $48 million and $1.67, respectively. Gross margin rose to 42.9% and operating margin to 14.1%, while comparable sales increased 3.7%. Management raised fiscal 2026 adjusted EPS guidance to $7.70-$8.05, but the outlook includes approximately $0.60 of tariff-refund benefit and Q3 guidance includes an approximately $0.50 tariff-reinvestment headwind. The filing reports no material changes to the prior 10-K risk factors.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $2.7
What stood out
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Revenue Beat and Sequential Growth
Revenue was $4.891 billion, $48 million above the $4.843 billion consensus estimate and approximately 5.4% above the prior-quarter $4.64 billion reported in the earnings history.
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Significant EPS Beat
Diluted EPS was $2.70 versus the $1.03 consensus estimate, a $1.67 beat and approximately $1.09 above the prior-quarter $1.61.
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Material Margin Expansion
Gross margin expanded to 42.9% from 35.6% in the prior quarter, a 7.3-percentage-point improvement; operating margin increased to 14.1% from 8.3%, up 5.8 points.
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Positive Comparable Sales
Comparable sales increased 3.7%, indicating positive customer traffic and demand momentum during the quarter.
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Raised Fiscal Outlook
Management raised fiscal 2026 adjusted EPS guidance to $7.70-$8.05 and provided a fiscal 2026 revenue outlook of $20.5-$20.7 billion.
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Aggressive Share Repurchases
The company repurchased 5,584,354 shares for $605.8 million at an average price of $108.43, leaving $2.49 billion available under the repurchase authorization at August 1, 2026.
What to watch
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Tariff Refund Inflates Earnings
Approximately $0.60 of the fiscal 2026 adjusted EPS outlook reflects a tariff-refund benefit, creating a nonrecurring contribution to the $7.70-$8.05 outlook range.
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Q3 Reinvestment Headwind
Management expects tariff-refund reinvestments to reduce Q3 EPS by approximately $0.50; Q3 EPS guidance is only $0.80-$0.95 despite expected revenue of $5.0-$5.1 billion.
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Inflation and Interest-Rate Exposure
The filing states that inflation in merchandise, transportation, diesel fuel, construction and labor costs may not be fully offset; the company specifically identifies a $500.0 million term loan as exposed to interest-rate risk, although a 1-percentage-point rate increase would not materially affect results.
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Multi-Year Systems Conversion Risk
No material changes were made to the 10-K risk factors, but the company had converted 9 distribution centers to its new warehouse management system, including 3 in Q2, with implementation expected to continue over several years.
Management's outlook
Fiscal 2026 adjusted diluted EPS outlook was raised to $7.70-$8.05, including an approximate $0.60 tariff-refund benefit. Q3 outlook is $5.0-$5.1 billion of revenue, 3.0%-4.0% comparable-sales growth and $0.80-$0.95 EPS, including an approximate $0.50 impact from tariff-refund reinvestments.
Earlier filings 4
10-K · March 16, 2026
Dollar Tree completed the sale of Family Dollar on July 5, 2025, generating approximately $793 million in cash (approximately $680 million net proceeds plus ~$113 million monetized) and is operating Dollar Tree as a…
10-Q · September 3, 2025
Dollar Tree reported a quarter of revenue and EPS beats driven by the Dollar Tree continuing operations and the one-time effects of the Family Dollar divestiture. Total revenue for the 13 weeks ended August 2, 2025 was…
10-Q · December 4, 2024
Dollar Tree reported total revenue of $7,568.2 million for the 13 weeks ended November 2, 2024, up $253.4 million versus the prior-year quarter, with diluted EPS of $1.08 (vs. $0.97). Dollar Tree segment led growth (net…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.