GOODLETTSVILLE, Tennessee, August 27, 2026, 07:30 EDT — Dollar General (DG) stock rose 13.3% in premarket trading, adding $3.6 billion in market capitalization as the company raised its guidance.
- Dollar General was priced at $139.11 ahead of Thursday’s session, a gain of 13.3% compared to Wednesday’s closing level.
- Operating profit for the quarter climbed 29.2%, driven by gains in both traffic and average transaction value.
- The retailer increased its projections for full-year sales, comparable-sales, and EPS.
Shares of Dollar General surged 13.3% in premarket trading on Thursday after the discount retailer lifted its full-year forecast. The rise increased its equity value by approximately $3.60 billion.
Dollar General Corporation (NYSE:DG) was last at $139.11 as of 07:30 EDT, trading $16.33 higher than its Wednesday closing level of $122.78 premarket data.
The implied value increase amounts to 4.7 times the operating profit reported in the second quarter. This figure is also roughly double the net income suggested by management’s midpoint estimate for full-year EPS.
The higher valuation is supported by a more transparent earnings composition. Customer visits climbed 2.0%, and average transaction value advanced 1.5%. These combined to deliver a 3.5% rise in comparable sales.
| Measure | Q2 fiscal 2026 | Year-over-year change |
|---|---|---|
| Net sales | $11.29 billion | up 5.2% |
| Comparable sales | up 3.5% | Traffic increased 2.0%; ticket rose 1.5% |
| Gross margin | 32.6% | improved by 127 basis points |
| Operating profit | $769.2 million | up 29.2% |
| Net income | $550.3 million | up 33.8% |
| Diluted EPS | $2.48 | up 33.3% |
Sales totaled $11.29 billion, surpassing the FactSet estimate of $11.2 billion. Diluted EPS was $2.48, higher than the $2.01 consensus noted by The Wall Street Journal.
Gross margin increased by 127 basis points to reach 32.6%. Tariff refunds, once reinvested, are estimated to have added 81 basis points. Additional support came from reduced distribution costs and a lower LIFO charge.
The difference is significant. Approximately 64% of the increase in gross margin was due to tariff refunds. Management anticipates that there will be no substantial refund benefit for the remainder of the year.
The operating margin rose to 6.81%, compared to 5.55% in the prior year. Refunds accounted for 66 basis points of the increase, with about half of the margin growth resulting from other elements company results.
Dollar General lifted its full-year EPS outlook to a range of $7.80–$8.00, up from the prior $7.20–$7.45 forecast. This represents a 7.8% rise at the midpoint. The retailer now anticipates net sales will climb 4.0%–4.3%, compared with the earlier estimate of 3.7%–4.2%.
Outlook for comparable sales was revised to a range of 2.5%–2.9%, up from a previous forecast of 2.2%–2.7%. Second-quarter performance came in above both projections. Reuters attributed the increased demand to budget-conscious consumers coping with rising costs of living.
Capital returns provide further backing. Dollar General intends to buy back as much as $700 million in the second half. The board has also announced a quarterly dividend of $0.59.
As of July 31, the company ran 21,148 stores. It maintains its forecast of approximately 450 store openings in the U.S., 10 in Mexico, and a total of 4,730 real-estate undertakings for the year.
Wall Street was split ahead of the report. According to Public’s survey of 18 analysts, 45% rated the stock as Buy or Strong Buy while 56% gave it a Hold rating. The consensus target price was set at $134.94, which is under the most recent premarket valuation analyst consensus.
Risks: The premarket price surpassed the former analyst target. Tariff refund benefits will not recur in the second half. Rising fuel prices, increased freight expenses and strain on lower-income consumers may negatively impact traffic or profit margins.
