Dollar Tree (NASDAQ:DLTR) Releases FY 2026 Earnings Guidance

Dollar Tree (NASDAQ:DLTR) issued an update on its FY 2026 earnings guidance on Thursday morning. The company provided earnings per share (EPS) guidance of 7.700-8.050 for the period, compared to the consensus earnings per share estimate of 5.950. The company issued revenue guidance of $20.5 billion-$20.7 billion, compared to the consensus revenue estimate of $19.7 billion. Dollar Tree also updated its Q3 2026 guidance to 0.800-0.950 EPS.

Dollar Tree Stock Down 1.7%

DLTR opened at $132.18 on Thursday. The company has a market capitalization of $25.40 billion, a P/E ratio of 20.65, a P/E/G ratio of 1.53 and a beta of 0.64. The company has a debt-to-equity ratio of 0.84, a current ratio of 1.16 and a quick ratio of 0.39. The firm’s fifty day moving average price is $125.40 and its two-hundred day moving average price is $114.65. Dollar Tree has a fifty-two week low of $84.71 and a fifty-two week high of $142.40.

Dollar Tree (NASDAQ:DLTR) last announced its quarterly earnings data on Thursday, August 27th. The company reported $2.70 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.15 by $1.55. The company had revenue of $4.89 billion during the quarter, compared to analysts’ expectations of $4.86 billion. Dollar Tree had a net margin of 6.51% and a return on equity of 35.19%. Dollar Tree has set its Q3 2026 guidance at 0.800-0.950 EPS and its FY 2026 guidance at 7.700-8.050 EPS. On average, analysts anticipate that Dollar Tree will post 7.02 EPS for the current year.

Dollar Tree announced that its board has authorized a share repurchase plan on Thursday, July 2nd that authorizes the company to buyback $2.50 billion in outstanding shares. This buyback authorization authorizes the company to purchase up to 10.7% of its shares through open market purchases. Shares buyback plans are typically a sign that the company’s management believes its shares are undervalued.

Analyst Upgrades and Downgrades

A number of equities analysts have recently issued reports on the company. Jefferies Financial Group raised Dollar Tree from a “moderate sell” rating to a “buy” rating in a report on Wednesday, July 8th. Evercore upgraded Dollar Tree from a “hold” rating to an “outperform” rating in a research note on Wednesday, July 8th. Wall Street Zen upgraded shares of Dollar Tree from a “hold” rating to a “buy” rating in a research note on Saturday, August 22nd. Bank of America restated an “underperform” rating on shares of Dollar Tree in a research report on Thursday, May 28th. Finally, BNP Paribas Exane raised their price objective on shares of Dollar Tree from $88.00 to $98.00 and gave the stock an “underperform” rating in a report on Friday, May 29th. Ten research analysts have rated the stock with a Buy rating, twelve have given a Hold rating and four have issued a Sell rating to the company. According to MarketBeat, the stock has an average rating of “Hold” and a consensus price target of $125.27.

Dollar Tree News Summary

Here are the key news stories impacting Dollar Tree this week:

• Positive Sentiment: Dollar Tree reported second-quarter revenue of approximately $4.9 billion, up 7.0% year over year and slightly above Wall Street expectations. Comparable-store sales increased 3.7%, supported by higher average ticket and modestly increased customer traffic. Dollar Tree beats quarterly revenue estimates on steady demand
• Positive Sentiment: Adjusted diluted EPS reached $2.70, far exceeding the $1.15 analyst consensus. Operating income rose to $690.1 million from $231.0 million, while the operating margin expanded by 900 basis points to 14.1%. Dollar Tree Q2 Revenue Rises 7% as Diluted EPS Reaches $2.70
• Positive Sentiment: Management raised fiscal 2026 adjusted EPS guidance to $7.70–$8.05 from $6.70–$7.10 and repurchased $605 million of stock during the quarter. Dollar Tree Lifts Earnings Outlook After Notching Higher Profit
• Neutral Sentiment: Dollar Tree projected third-quarter sales of $5.0 billion–$5.1 billion and diluted EPS of $0.80–$0.95. Investors may focus on whether the forecast supports the sharply higher full-year outlook.
• Negative Sentiment: The stock had already advanced about 43% over the prior three months and was approaching technical resistance near $141.50, increasing the potential for profit-taking even after the earnings beat. Stock of the Day: Is this the Top for Dollar Tree?
• Negative Sentiment: Recent ownership data was mixed: some large institutions increased positions, while others reduced holdings; an insider also sold a substantial block of shares. These transactions could add to near-term caution but do not alter the quarter’s operating results.

Institutional Trading of Dollar Tree

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in DLTR. Compound Planning Inc. grew its position in shares of Dollar Tree by 30.3% during the 4th quarter. Compound Planning Inc. now owns 3,031 shares of the company’s stock worth $373,000 after buying an additional 704 shares during the period. Invesco Ltd. boosted its stake in Dollar Tree by 1.5% in the fourth quarter. Invesco Ltd. now owns 2,719,303 shares of the company’s stock valued at $334,501,000 after acquiring an additional 39,506 shares during the last quarter. Corient Private Wealth LLC grew its holdings in Dollar Tree by 102.9% during the 4th quarter. Corient Private Wealth LLC now owns 40,461 shares of the company’s stock worth $4,977,000 after acquiring an additional 20,519 shares during the period. Mercer Global Advisors Inc. ADV raised its position in shares of Dollar Tree by 16.2% during the 4th quarter. Mercer Global Advisors Inc. ADV now owns 12,266 shares of the company’s stock valued at $1,477,000 after acquiring an additional 1,706 shares during the last quarter. Finally, Owlhouse Capital LP acquired a new position in shares of Dollar Tree in the 4th quarter valued at $3,014,000. 97.40% of the stock is currently owned by institutional investors and hedge funds.

Dollar Tree Company Profile

Dollar Tree, Inc is a North American discount retailer that operates a portfolio of value-oriented store banners, primarily Dollar Tree and Family Dollar. The company’s stores offer a broad assortment of everyday items at low price points, including household essentials, food and snacks, health and beauty products, cleaning supplies, seasonal and party goods, home décor, and basic apparel. Dollar Tree’s merchandising strategy emphasizes high-turnover branded and private-label merchandise tailored to budget-conscious consumers, with Family Dollar complementing the chain by offering a wider range of price points and assortment depth in smaller-format neighborhood locations.

Founded in 1986 and headquartered in Chesapeake, Virginia, Dollar Tree has grown through both organic store openings and acquisitions.