Dollar Tree Q3 2026 Earnings Revenue Surges 9.4% as Profitability Strengthens

Dollar Tree (DLTR) reported fiscal 2026 Q3 earnings on Dec 3, 2025, with results exceeding expectations. The company raised full-year guidance and delivered robust revenue growth, driven by strong consumer demand and strategic pricing initiatives.

Revenue

The Dollar Tree segment generated $4.75 billion in revenue, with no contributions from Corporate, Support, and Other activities, resulting in a total of $4.75 billion. This marks a 9.4% increase from $4.34 billion in the prior year, reflecting sustained demand across core categories and successful execution of the multi-price strategy.

Earnings/Net Income

Dollar Tree’s EPS rose 10.1% to $1.20 in 2026 Q3 from $1.09 in 2025 Q3, while net income grew 4.8% to $244.60 million. The 10.1% EPS growth and 4.8% net income increase underscore Dollar Tree’s strong operational resilience and sustained profitability.

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

CEO Michael Creedon highlighted 4.2% comp sales growth, driven by Halloween success and a multi-price strategy yielding 3.5x higher profits. He emphasized expanding the “value, convenience, and discovery” proposition and leveraging operational efficiencies to strengthen long-term profitability.

Guidance

CFO Stewart Glendinning raised full-year 2025 adjusted EPS guidance to $5.60–$5.80 and projected Q4 comp sales growth of 4–6%. The company anticipates gross margin expansion of 50–60 bps and a 12–15% CAGR in adjusted EPS through 2028.

Additional News

1. M&A Activity: Dollar Tree agreed to sell Family Dollar (7,000 stores) to private equity for $1 billion, streamlining its retail footprint.

2. Analyst Ratings: Telsey Advisory Group maintained an “Outperform” rating with a $130 price target, while Goldman Sachs downgraded DLTR to “Sell” with a $103 target.

3. Strategic Shifts: The multi-price strategy, which drives higher-margin sales, remains central to Dollar Tree’s growth, supported by improved inventory management and customer acquisition.