Dollar Tree 2026 Q3 Earnings Strong Performance with 4.8% Net Income Growth

Dollar Tree (DLTR) reported fiscal 2026 Q3 earnings on Dec 3, 2025, exceeding expectations with a 9.4% revenue increase and a 10.1% rise in EPS. The company raised full-year guidance, projecting 5%–5.5% comparable sales growth and adjusted EPS of $5.60–$5.80, driven by gross margin expansion and disciplined cost management.

Revenue

Dollar Tree’s total revenue reached $4.75 billion in Q3 2026, driven entirely by the Dollar Tree Segment, which accounted for the entire amount, while the Corporate, Support and Other segment reported no revenue. This 9.4% year-over-year increase reflects strong demand across its product mix and operational efficiency.

Earnings/Net Income

The company’s EPS rose 10.1% to $1.20 in 2026 Q3 from $1.09 in 2025 Q3, with net income growing 4.8% to $244.60 million. Sustained profitability for over two decades and strong operational resilience underscore its robust financial health.

Price Action

The stock price of Dollar Tree has climbed 3.72% during the latest trading day, 6.87% during the most recent full trading week, and 13.92% month-to-date.

Post-Earnings Price Action Review

The strategy of buying DLTR when earnings beat and holding for 30 days resulted in a -10.10% return, significantly underperforming the benchmark return of 84.40%. The strategy’s Sharpe ratio was -0.06, indicating poor risk-adjusted returns, and it experienced a maximum drawdown of 0.00%, highlighting its inability to withstand market volatility.

CEO Commentary

Michael Creedon, CEO, highlighted Q3 2026 performance, noting “mid-single-digit comps, above outlook earnings, and strong end-of-quarter momentum,” driven by disciplined execution and a multi-price strategy. He emphasized attracting 3 million new households, 60% from higher-income cohorts, and strategic priorities like expanding multi-price assortments and operational efficiency.

Guidance

Stewart Glendinning, CFO, outlined Q4 2026 guidance: comps of 4%–6%, net sales of $5.4B–$5.5B, and adjusted EPS of $2.40–$2.60. For fiscal 2026, full-year comps are projected at 5%–5.5%, with adjusted EPS of $5.60–$5.80, supported by gross margin expansion and $1.2B–$1.3B in CapEx.

Additional News

Dollar Tree agreed to sell Family Dollar (7,000 stores) to private equity investors for $1 billion, signaling strategic focus on core operations. CEO Michael Creedon emphasized attracting higher-income customers and increasing trip frequency through multi-price strategies. Analysts, including Telsey Advisory Group, maintained an “Outperform” rating with a $130 price target, while Goldman Sachs downgraded to “Sell” at $103. The company also reported aggressive share buybacks, contributing to a high shareholder yield despite no dividend payouts.