Dollar Tree Q2 2026 Earnings: Revenue and EPS Beat Expectations

Dollar Tree reported Q2 2026 results with revenue of $4.57b, up 12% YoY, and net income of $155.5m, up 9.3% YoY. EPS increased to $0.75 from $0.66 in Q2 2025. Revenue exceeded analyst estimates by 2.0% and EPS surpassed estimates by 76%. The company's shares are down 11% from a week ago.

Dollar Tree Inc. (DLTR) reported its second-quarter (Q2) 2026 earnings, showcasing robust financial performance. The company's revenue reached $4.57 billion, marking a 12% year-over-year (YoY) increase, while net income climbed to $155.5 million, a 9.3% YoY rise [1]. The earnings per share (EPS) increased to $0.75, up from $0.66 in Q2 2025. Revenue exceeded analyst estimates by 2.0%, and EPS surpassed estimates by 76%. Despite the positive earnings report, the company's shares experienced an 11% decline from a week ago.

Key Takeaways:
- Revenue: $4.57 billion, up 12% YoY
- Net Income: $155.5 million, up 9.3% YoY
- EPS: $0.75, up from $0.66 in Q2 2025
- Revenue exceeded analyst estimates by 2.0%
- EPS surpassed estimates by 76%
- Shares down 11% from a week ago

The strong Q2 results were driven by a 12.3% YoY increase in revenue, with comparable store sales growing by 6.5%. The company's strategic initiatives, including store format conversions and product assortment expansion, have contributed to this growth. Despite a challenging consumer environment, Dollar Tree has managed to attract 2.4 million new customers over the past year, with significant gains from higher-income households. The company continues to expand its store formats and product offerings, and strategic partnerships like with Uber Eats are broadening customer reach.

Market Reaction:
Despite the positive earnings report, Dollar Tree's stock fell by 11% in premarket trading. This decline comes amid an otherwise strong year, with the stock posting a 48.6% year-to-date return and a remarkable 61.9% gain over the past six months. The decline may reflect investor concerns about the volatile consumer environment and potential tariff impacts, despite the company’s strong financial results and strategic growth initiatives. InvestingPro data shows the company maintains robust cash flows that can sufficiently cover interest payments, suggesting financial stability despite market volatility.

Outlook & Guidance:
Looking ahead, Dollar Tree has provided full-year guidance with comparable sales growth expected between 4% and 6% and adjusted EPS guidance ranging from $5.32 to $5.72. The company anticipates a gross margin improvement of approximately 50 basis points and plans to share its long-term strategy at an upcoming investor day.

Executive Commentary:
CEO Mike Creedon expressed confidence in Dollar Tree’s ability to thrive in challenging times, stating, "Dollar Tree has always thrived in tough times." He emphasized the company’s focus on growth, productivity, and cost control, adding, "We are executing on growth, productivity, and cost control simultaneously."

Risks and Challenges:
Volatile consumer environment could impact sales. Tariff and cost pressures may affect profitability. Market saturation in some regions could limit growth. Supply chain disruptions could affect inventory levels. Economic downturns could reduce consumer spending.

References:
[1] https://www.investing.com/news/transcripts/earnings-call-transcript-dollar-tree-q2-2025-beats-eps-forecast-shares-dip-93CH-4221834