Dollar General (DG) stock was down on Thursday following the release of the retail company’s Q4 2025 earnings report. The report started off strong with diluted earnings per share of $1.93, which easily beat Wall Street’s estimate of $1.66. The company’s diluted EPS also increased 121.8% year-over-year from 87 cents.
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Dollar General’s revenue for the fourth quarter of 2025 came in at $10.92 billion, which was another beat compared to analysts’ estimate of $10.81 billion. This represented revenue growth of 5.9% from the $10.3 billion reported in Q4 2024. Dollar General CEO Todd Vasos highlighted the company’s “4.3% increase in same-store sales and continued advancement of our key initiatives.” He said this resulted in “strong operating margin expansion and EPS growth that well exceeded our expectations.”
Dollar General stock was down 4.49% in pre-market trading on Thursday, following a 0.79% drop yesterday. The shares have rallied 9.56% year-to-date and 81.16% over the past 12 months.
Dollar General 2026 Guidance
Dollar General provided investors with its outlook for 2026 in its latest earnings report. The retailer expects:
- Net sales growth in the range of approximately 3.7% to 4.2%.
- Same-store sales growth in the range of approximately 2.2% to 2.7%.
- Diluted EPS in the range of approximately $7.10 to $7.35.
- Diluted EPS guidance assumes an effective tax rate of approximately 25%.
- Diluted EPS guidance assumes a negative impact of approximately $0.13 due to the expiration of the Work Opportunity Tax Credit on December 31, 2025.
- Capital expenditures, including those related to investments in the Company’s strategic initiatives, in the range of $1.4 billion to $1.5 billion.
Dollar General also said it intends to execute 4,730 real estate projects in fiscal 2026. This includes:
- Approximately 450 new stores in the United States and approximately 10 new stores in Mexico.
- Remodeling approximately 2,000 stores through Project Renovate.
- Remodeling approximately 2,250 stores through Project Elevate.
- Relocating approximately 20 stores.
Dollar General’s earnings report also included details on an upcoming dividend. The company’s Board of Directors approved a 59-cent dividend that will be payable April 21, 2026, to shareholders of record on April 7, 2026.
Is Dollar General Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Dollar General is Moderate Buy, based on eight Buy, seven Hold, and a single Sell rating over the past three months. With that comes an average DG stock price target of $148.90, representing a potential 2.8% upside for the shares. These ratings and price targets will likely change as analysts update their coverage after today’s earnings report.
