Discount treasure-hunt retailer Dollar Tree (NASDAQ: DLTR) met Wall Street’s revenue expectations in Q1 CY2026, with sales up 7.2% year on year to $4.98 billion. The company expects next quarter’s revenue to be around $4.85 billion, close to analysts’ estimates. Its non-GAAP profit of $1.74 per share was 12.6% above analysts’ consensus estimates.
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Dollar Tree (DLTR) Q1 CY2026 Highlights:
- Revenue: $4.98 billion vs analyst estimates of $4.96 billion (7.2% year-on-year growth, in line)
- Adjusted EPS: $1.74 vs analyst estimates of $1.55 (12.6% beat)
- Adjusted EBITDA: $650.3 million vs analyst estimates of $602.7 million (13.1% margin, 7.9% beat)
- The company reconfirmed its revenue guidance for the full year of $20.6 billion at the midpoint
- Management raised its full-year Adjusted EPS guidance to $6.90 at the midpoint, a 3% increase
- Operating Margin: 9.5%, up from 8.3% in the same quarter last year
- Free Cash Flow Margin: 7.9%, up from 5% in the same quarter last year
- Same-Store Sales rose 3.5% year on year (5.4% in the same quarter last year)
- Market Capitalization: $18.67 billion
Company Overview
A treasure hunt because there’s no guarantee of consistent product selection, Dollar Tree (NASDAQ: DLTR) is a discount retailer that sells general merchandise and select packaged food at extremely low prices.
Revenue Growth
A company’s long-term sales performance can indicate its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul.
With $19.75 billion in revenue over the past 12 months, Dollar Tree is one of the larger companies in the consumer retail industry and benefits from a well-known brand that influences purchasing decisions. However, its scale is a double-edged sword because there are only a finite number of places to build new stores, making it harder to find incremental growth. To expand meaningfully, Dollar Tree likely needs to tweak its prices or enter new markets.
As you can see below, Dollar Tree struggled to generate demand over the last three years. Its sales dropped by 11.8% annually, a rough starting point for our analysis.
This quarter, Dollar Tree grew its revenue by 7.2% year on year, and its $4.98 billion of revenue was in line with Wall Street’s estimates. Company management is currently guiding for a 6.1% year-on-year increase in sales next quarter.
Looking further ahead, sell-side analysts expect revenue to grow 5.9% over the next 12 months, an acceleration versus the last three years. This projection is particularly noteworthy for a company of its scale and indicates its newer products will fuel better top-line performance.
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Same-Store Sales
Same-store sales is a key performance indicator used to measure organic growth at brick-and-mortar shops for at least a year.
Dollar Tree’s demand has been spectacular for a retailer over the last two years. On average, the company has increased its same-store sales by an impressive 3.6% per year.
In the latest quarter, Dollar Tree’s same-store sales rose 3.5% year on year. This performance was more or less in line with its historical levels.
Key Takeaways from Dollar Tree’s Q1 Results
We were impressed by Dollar Tree’s optimistic EPS guidance for next quarter, which blew past analysts’ expectations. We were also excited its EBITDA outperformed Wall Street’s estimates by a wide margin. Overall, we think this was a very good quarter with some key metrics above expectations. The stock traded up 10.7% to $106.11 immediately following the results.
Dollar Tree had an encouraging quarter, but one earnings result doesn’t necessarily make the stock a buy. Let’s see if this is a good investment. When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here (it’s free).
