Five Below 2026 Q3 Earnings Net Income Surges 2063.9%

Five Below (FIVE) reported fiscal 2026 Q3 earnings on Dec 3, 2025, with results far exceeding expectations. The company raised its full-year guidance and delivered a 23.1% revenue increase to $1.04 billion, alongside a 2100% surge in EPS to $0.66.

Revenue

Total revenue surged to $1.04 billion in 2026 Q3, a 23.1% year-over-year increase from $843.71 million in 2025 Q3. The growth was driven by 14% same-store sales expansion and 9% store count growth, reflecting strong demand for value-priced goods.

Earnings/Net Income

Five Below’s EPS skyrocketed 2100% to $0.66 in 2026 Q3 from $0.03 in 2025 Q3, while net income surged 2063.9% to $36.51 million from $1.69 million. This extraordinary growth underscores the company’s effective cost management and operational efficiency. The EPS performance is exceptionally positive, highlighting robust profitability.

Post-Earnings Price Action Review

A strategy of purchasing Five Below shares after its revenue raise on the earnings report date and holding for 30 days demonstrated exceptional returns. Over three years, this approach generated a 109.6% cumulative return, outperforming the S&P 500’s 47.4%. The company’s consistent earnings beats, guidance raises, and strong market reactions—such as a 2.69% regular-trading gain and 3.4% after-hours surge—reflect investor confidence in its growth trajectory. The 23% year-over-year revenue growth, combined with disciplined cost controls, further validates the strategy’s effectiveness.

CEO Commentary

Winifred Park, CEO, emphasized Q3’s $1.04 billion revenue and 14% same-store sales growth, attributing success to a customer-centric strategy targeting Gen Z and millennials. Strategic priorities include expanding beyond $5 price points while maintaining value, enhancing in-store experiences, and leveraging seasonal events like Halloween. Park expressed confidence in sustaining growth through cross-functional execution and agile testing.

Guidance

Daniel Sullivan, CFO, updated Q4 2025 guidance to $1.58–$1.61 billion in sales (14.7% growth at midpoint) and adjusted EPS of $3.45. Full-year 2025 sales are projected at $4.62–$4.65 billion, with adjusted EPS of $5.80 at midpoint (15% growth). Capital expenditures of $200 million will support 150 net new stores and infrastructure investments.

Additional News

Recent non-earnings developments include a class-action lawsuit investigation by Grabar Law Office, alleging securities fraud related to prior misleading statements about Five Below’s operations. Separately, the stock surged 3.86% post-earnings as investors reacted to raised guidance and strong Q3 results. Analysts at Zacks Investment Research upgraded the stock to a “Buy” rating, citing favorable earnings estimate revisions and outperformance potential against the S&P 500.

Five Below’s strategic focus on customer engagement and value-driven offerings positions it to capitalize on holiday season demand, despite potential margin pressures. The company’s ability to exceed expectations and adjust guidance upward signals strong operational resilience and market adaptability. Investors may continue to benefit from its disciplined growth strategy and alignment with macroeconomic trends favoring budget-conscious consumers.