Dollar Tree ve 2. čtvrtletí zvýšila tržby o 7 % na 4,89 miliardy USD a zisk na akcii vyskočil na 2,70 USD, nad odhady. K růstu pomohly i vratky cel, které zvýšily marži.
Did Dollar Tree Inc (DLTR) Outperform Expectations with Q2 EPS of $2.70? GF Score: 79/100, 10.8% Undervalued Strong Sales Growth Offset by Ongoing Challenges
Dollar Tree Inc DLTR released its 8-K filing on August 27, 2026, revealing a second quarter marked by a 7.0% increase in total sales, reaching $4.89 billion. This release highlights both promising sales figures alongside notable challenges that have impacted the company's financial performance.
Founded in 1986, Dollar Tree operates almost 9,000 small-box discount stores across the United States and Canada, offering roughly 85% of its merchandise for $2 or less. Known for targeting value-conscious consumers, the retail chain features a diverse product mix, including consumables (49% of sales), variety items (45%), and seasonal goods (6%). In fiscal 2025, Dollar Tree generated over $19 billion in sales through its multi-price strategy, higher-margin discretionary assortments, and private-label products. In the recently reported quarter, the company faced challenges related to foot traffic and competition, leading to a 3.7% growth in comparable store net sales on the heels of a 6.5% rise from the previous year. Despite these headwinds, the company achieved a substantial increase in diluted earnings per share (EPS) of $2.70, significantly surpassing the prior year number and analyst expectations, thanks in part to a considerable $1.31 benefit from tariff refunds.
Financial Highlights and Efficiency ImprovementsDollar Tree's margins were positively influenced by a gross profit margin increase of 850 basis points to 42.9%. This improvement can largely be attributed to tariff refunds, which accounted for a significant portion of the increase. The remaining margin enhancement resulted from lower tariff rates and effective inventory control. Meanwhile, selling, general and administrative (SG&A) expenses saw a moderate decrease to 29.2% of total revenue, reflecting optimized operational efficiencies.Key financial metrics illustrate a robust performance model for Dollar Tree:
MetricQ2 2026Q2 2025ChangeNet Sales$4.89 billion$4.57 billion+7.0%Comparable Store Net Sales Growth3.7%6.5%-2.8%Operating Income$690 million$231 million+198.7%Diluted EPS$2.70$0.75+260.0% The increase in operating income margin, which expanded 900 basis points to 14.1%, indicates better operational health. This translates into improved profitability which is crucial for sustaining growth and navigating competitive retail landscapes.
What continues to set Dollar Tree apart is our ability to deliver value, convenience, and the excitement of discovery all in one shopping trip,” stated CEO Mike Creedon. "While we are proud of the progress we have made, we are even more focused on the opportunities ahead as we continue investing in the customer experience, strengthening the business, and driving profitable long-term growth."GuruFocus Valuation CheckBased on the latest analysis, Dollar Tree Inc DLTR appears to be undervalued at its current price of $132.18, with a GuruFocus (GF) Value pegged at $148.26, suggesting a potential upside of 10.8%. The firm’s GF Score of 79/100 signals that it outperforms many of its peers in certain key metrics, making it an appealing option in the defensive retail sector.The company's financial strength is rated at 6/10, which indicates a relatively acceptable level of stability for investors. Profitability and growth also receive a rank of 6/10 each, suggesting that while the company is performing satisfactorily, there are opportunities for enhancement, which could be instrumental in unlocking additional shareholder value over time. However, the predictability rating of only 1 star hints at potential volatility, which investors should consider.Insider activity shows a significant net selling figure of $248.5 million over the past year, with only $0.3 million in purchases. This volume of sales may warrant caution among investors, as it signals a potential lack of confidence from insiders regarding the immediate stock outlook.For a deeper dive, visit the Dollar Tree Inc stock page on GuruFocus.
Explore the complete 8-K earnings release (here) from Dollar Tree Inc for further details.
GuruFocus context: GuruFocus’ GF Value™ estimates fair value near $148.26 (10.8% undervalued); its GF Score™ is 79/100; 7 gurus currently hold the stock, with 5 adding and 2 trimming positions in recent quarters — guru 13F data Simply Wall St and Morningstar don’t have. See the full Dollar Tree Inc DLTR research.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Dollar Tree oznámila hospodářské výsledky za 2. fiskální čtvrtletí 2026. Na konferenčním hovoru vedení představilo čtvrtletní výsledky a výhled společnosti.
Dollar Tree, Inc. (DLTR) Q2 2027 Earnings Call August 27, 2026 8:00 AM EDT
Company Participants
Daniel Delrosario - Senior VP of Investor Relations & Treasurer
Michael Creedon - CEO & Director
Stewart Glendinning - Chief Financial Officer
Conference Call Participants
Matthew Boss - JPMorgan Chase & Co, Research Division
Seth Sigman - Barclays Bank PLC, Research Division
Rupesh Parikh - Oppenheimer & Co. Inc., Research Division
Robert Griffin - Raymond James & Associates, Inc., Research Division
Michael Lasser - UBS Investment Bank, Research Division
Edward Kelly - Wells Fargo Securities, LLC, Research Division
Presentation
Operator
Greetings, and welcome to the Dollar Tree Q2 2026 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. [Operator Instructions] It's now my pleasure to turn the call over to Daniel Delrosario, Senior Vice President, Investor Relations and Treasurer.
Daniel, please go ahead.
Daniel Delrosario
Senior VP of Investor Relations & Treasurer
Thank you, operator. Good morning, everyone, and thank you for joining us today to discuss Dollar Tree's second quarter fiscal 2026 results. With me today are Dollar Tree's CEO, Mike Creedon; and CFO, Stewart Glendinning.
Before we begin, I would like to remind everyone that some of the remarks that we will make today about the company's expectations, plans and future prospects are considered forward-looking statements under the safe harbor provision of the Private Securities Litigation Reform Act of 1995. These statements are subject to risks and uncertainties, which could cause actual results to differ materially from those contemplated by our forward-looking statements.
For information on the risks and uncertainties that could affect our actual results, please see the Risk Factors, Business and Management's Discussion and Analysis of Financial Condition and Results of Operations section in our annual report on Form 10-K filed on March 16, 2026, our most recent press release on Form 8-K and other
Dollar Tree i Dollar General překonaly očekávání zisků, ale Dollar Tree po dni výsledků klesl o 3,92 %, zatímco Dollar General vzrostl o 2,53 %. Cramer to přičítá hlavně očekáváním a starému stínu akvizice Family Dollar.
Both dollar store chains beat earnings expectations on the same day, yet the one with the stronger comparable sales number watched its stock fall while the weaker performer surged. Jim Cramer says a years-old mistake is still pulling the strings.
Two dollar stores reported strong sales this week, both beating expectations, yet the one with the better comparable sales number was the one investors sold off.
That is the setup Jim Cramer walked through on his Mad Dash segment on CNBC after Dollar Tree (NASDAQ:DLTR | DLTR Price Prediction) and Dollar General (NYSE:DG) posted their quarters within hours of each other.
Dollar Tree delivered comparable store sales growth of 3.7%. Dollar General came in at 3.5%. Both cleared analyst expectations.
Yet Dollar Tree fell 3.92% on the day of its release, while Dollar General rose 2.53%, meaning the stronger comp number produced the weaker stock reaction. This outcome shows that earnings are judged against expectations already priced into the stock, rather than against a zero baseline, where any beat would be rewarded equally.
What Cramer Told Viewers on Mad Dash Cramer opened by acknowledging both retailers had been underestimated. “Dollar General, the numbers were good. And I think a lot of people were expecting not good comp store sales plus 3.5. That’s certainly good. Dollar Tree was comp for sales plus 3.7.”
His diagnosis of the divergent stock reaction: “It’s about expectations.”
He then reached back years to explain why Dollar Tree kept getting punished. “I keep thinking that Dollar Tree made that acquisition of Family Dollar. It’s still been dogging them.”
Expectations set the bar, and old capital allocation decisions still shape how a stock is priced today. Dollar Tree completed the divestiture of Family Dollar in July 2025 and now operates solely as a Dollar Tree-branded retailer. The overhang Cramer described is a memory, but memories move stocks.
What Comparable Sales Actually Measure Comparable store sales, or comps, strip out the effect of new store openings and closures. The metric isolates whether the same physical stores are ringing up more revenue than they did a year earlier.
Comps are the single most-watched metric in retail because total sales growth can be manufactured by opening stores, but comp growth cannot.
A comp built on traffic is stronger than one built purely on price. Dollar General reported customer traffic growth of 2% and average basket growth of 1.5%. Dollar Tree reported traffic up 0.4% and average ticket up 3.3%. Both signals confirm value retail is pulling customers through the door.
Both chains are selling more out of the same footprint. Two discount chains growing comps simultaneously signals where household spending is going and reflects continued trade-down behavior.
Why the Stronger Number Lost A stock price already contains a forecast. An earnings report is judged against that forecast.
Dollar General walked in priced for disappointment. Its shares had fallen 39.18% over five years, leaving a low bar. Beating that bar produced the one-day gain.
Dollar Tree walked in with the opposite setup. Its shares were up 12.53% over the past year, and much of the headline EPS beat came from a one-time $383 million IEEPA tariff refund that contributed $1.31 per diluted share.
Management guided third-quarter EPS to a range of $0.80 to $0.95, which includes about a $0.50 per-share headwind from reinvesting tariff savings into pricing and store experience. Investors read the underlying quarter as less impressive than the headline suggested.
Family Dollar Shadow and What to Watch Acquisitions create long-lived skepticism that operating results struggle to erase. Buying Family Dollar was a capital allocation decision, and questioning it calls into question management judgment, not just this quarter’s sales.
That doubt takes years and repeated evidence to unwind. Even with Family Dollar divested and Dollar Tree now a cleaner story, the memory colors how investors interpret every guide.
Dollar General does not carry that burden. Its Q2 call raised full-year EPS guidance to a range of $7.80 to $8, with EPS up 33% to $2.48 and traffic growth described as the “fifth consecutive quarter of growth in customer traffic.”
CEO Todd Vasos noted higher-income shoppers becoming more consistent, saying the customer earning $100,000 and above had shifted from sporadic trade-in behavior to “a more everyday basis”. That is durable operational proof that Dollar Tree still owes the market.
For an investor weighing which situation is more interesting, Dollar General is the cleaner setup. The expectations bar is lower, earnings quality is higher, and multiyear skepticism sits on the other stock.
Contact [email protected] for any questions or corrections.
Beacon Pointe Advisors LLC ve 2. čtvrtletí otevřela novou pozici v Dollar Tree za zhruba 11,7 mil. USD. Dollar Tree zároveň oznámila výnosy 4,89 mld. USD a upravený zisk na akcii (EPS) 2,70 USD, nad odhady.
Beacon Pointe Advisors LLC purchased a new position in shares of Dollar Tree, Inc. (NASDAQ:DLTR – Free Report) during the second quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm purchased 96,677 shares of the company’s stock, valued at approximately $11,693,000. Beacon Pointe Advisors LLC owned 0.05% of Dollar Tree as of its most recent filing with the Securities and Exchange Commission (SEC).
A number of other institutional investors and hedge funds have also recently made changes to their positions in DLTR. Cullen Frost Bankers Inc. acquired a new position in shares of Dollar Tree in the 4th quarter valued at approximately $25,000. Reflection Asset Management acquired a new stake in shares of Dollar Tree during the 4th quarter worth approximately $25,000. Covestor Ltd boosted its position in shares of Dollar Tree by 60.9% during the 4th quarter. Covestor Ltd now owns 222 shares of the company’s stock worth $27,000 after acquiring an additional 84 shares in the last quarter. Basecamp Wealth Advisors LLC increased its stake in Dollar Tree by 59.9% in the first quarter. Basecamp Wealth Advisors LLC now owns 259 shares of the company’s stock valued at $28,000 after acquiring an additional 97 shares during the last quarter. Finally, EFG International AG bought a new position in Dollar Tree in the second quarter valued at approximately $30,000. Institutional investors and hedge funds own 97.40% of the company’s stock.
Dollar Tree Price Performance Dollar Tree stock opened at $128.26 on Friday. The stock’s 50 day moving average is $126.03 and its 200 day moving average is $114.77. The company has a debt-to-equity ratio of 0.86, a current ratio of 1.13 and a quick ratio of 0.39. The firm has a market cap of $24.65 billion, a P/E ratio of 15.66, a P/E/G ratio of 1.39 and a beta of 0.64. Dollar Tree, Inc. has a one year low of $84.71 and a one year high of $142.40.
Dollar Tree (NASDAQ:DLTR – Get Free Report) last posted its quarterly earnings data on Thursday, August 27th. The company reported $2.70 EPS for the quarter, beating analysts’ consensus estimates of $1.15 by $1.55. Dollar Tree had a net margin of 8.03% and a return on equity of 38.61%. The company had revenue of $4.89 billion for the quarter, compared to analyst estimates of $4.86 billion. During the same period in the prior year, the firm posted $0.77 EPS. The company’s quarterly revenue was up 7.0% on a year-over-year basis. 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. As a group, research analysts expect that Dollar Tree, Inc. will post 7.13 EPS for the current year. Dollar Tree declared that its Board of Directors has initiated a stock buyback plan on Thursday, July 2nd that allows the company to repurchase $2.50 billion in outstanding shares. This repurchase authorization allows the company to repurchase up to 10.7% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company’s board believes its shares are undervalued.
Key Headlines Impacting Dollar Tree Here are the key news stories impacting Dollar Tree this week:
Positive Sentiment: Dollar Tree reported second-quarter revenue of $4.89 billion, up 7% year over year and above estimates of approximately $4.86 billion. Adjusted earnings per share reached $2.70, substantially exceeding the $1.15 consensus, helped by higher markups, lower freight costs, reduced shrinkage and tariff-related refunds. Dollar Tree beats quarterly revenue estimates on steady demand Positive Sentiment: Comparable-store sales rose 3.7%, driven by a 3.3% increase in average ticket and positive customer traffic of 0.4%. Management also cited improving assortments and continued demand for affordable essentials. Dollar Tree Q2 earnings call highlights Positive Sentiment: Management raised full-year fiscal 2026 adjusted EPS guidance to $7.70–$8.05 from $6.70–$7.10. Dollar Tree also repurchased approximately 5.6 million shares for $605 million during the quarter, supporting per-share results. Dollar Tree lifts earnings outlook Neutral Sentiment: Dollar Tree is attracting more middle- and high-income shoppers seeking value, while lower-income customers remain pressured by the cost of necessities. This broadens the customer base but also highlights uneven consumer health. Dollar Tree attracts higher-income customers Negative Sentiment: Third-quarter adjusted EPS guidance of $0.80–$0.95 was well below the roughly $1.40 analyst expectation. Investors viewed the outlook as evidence that fuel costs, tariffs and reinvestment expenses could pressure profitability, overshadowing the second-quarter beat and the higher full-year forecast. Dollar Tree cites higher fuel prices as a headwind Analyst Upgrades and Downgrades Several equities research analysts have weighed in on DLTR shares. Evercore upgraded Dollar Tree from a “hold” rating to an “outperform” rating in a research note on Wednesday, July 8th. Benchmark assumed coverage on Dollar Tree in a research note on Wednesday, July 8th. They issued a “hold” rating on the stock. UBS Group boosted their price target on Dollar Tree from $145.00 to $150.00 and gave the stock a “buy” rating in a report on Friday. Barclays downgraded Dollar Tree from an “overweight” rating to a “strong sell” rating in a research report on Wednesday, July 8th. Finally, Truist Financial lifted their target price on Dollar Tree from $136.00 to $138.00 and gave the company a “buy” rating in a research report on Tuesday. Ten equities research analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and three have assigned a Sell rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus price target of $129.18.
Check Out Our Latest Research Report on DLTR
About Dollar Tree (Free Report)
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.
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Dollar Tree čeká ve 2Q tržby 4,85 mld. USD a EPS 1,11 USD na akcii, což by znamenalo růst proti loňsku. Tlak dál vytvářejí cla, vyšší přepravní náklady a rostoucí provozní výdaje.
Key Takeaways Dollar Tree is set to report Q2 results with expected revenue and earnings growth from a year ago.DLTR's sales may benefit from category strength, market share gains and store portfolio optimization.Tariffs, freight costs and higher operating expenses remain key pressures ahead of the Q2 results. Dollar Tree, Inc. (DLTR - Free Report) is likely to register growth in its top and bottom lines when it reports second-quarter fiscal 2026 results on Aug. 27, before market open. The Zacks Consensus Estimate for revenues is pegged at $4.85 billion, indicating growth of 6.3% from the prior-year quarter’s reported figure.
The consensus estimate for earnings is pegged at $1.11 per share, suggesting an increase of 44.2% from the year-ago period’s reported figure. The consensus mark has been unchanged in the past 30 days.
DLTR has a trailing four-quarter earnings surprise of 32.1%, on average. In the last reported quarter, the Chesapeake, VA-based company’s earnings surpassed the Zacks Consensus Estimate by 13.7%.
Trends to Watch Before Dollar Tree’s Q2 ReleaseDLTR’s fiscal second-quarter performance is expected to have benefited from growth across categories and market share gains. Dollar Tree’s progress on optimizing its store portfolio through store openings, renovations, re-banners and closings appears encouraging. Such factors have been driving the company's comps for a while now.
The company is expected to have witnessed a strong performance, driven by sales growth across categories and market share gains. Dollar Tree has made significant progress over the years in optimizing its store portfolio through store openings, renovations, re-banners and closings. The expanded multi-price assortment, continued strength from higher-income customers, and a healthy balance between traffic and ticket continue to support comps growth.
Strong performance from store conversions, openings, improved distribution center flow and the early traction of the Uber Eats partnership should have provided incremental support to second-quarter fiscal 2026 revenues.
For the second quarter of fiscal 2026, the company projects net sales from continuing operations between $4.8 billion and $4.9 billion, supported by expected comparable-store sales growth of 2.5-3.5%. Adjusted earnings per share are anticipated to be $1-$1.15.
Our model projects year-over-year sales growth of 6.2% and adjusted earnings per share of $1.10 for the second-quarter fiscal 2026.
However, Dollar Tree’s second-quarter fiscal 2026 results are expected to reflect the environment of uncertainty that management emphasized on the latest earnings call. Despite strong discretionary and consumable spending, management has taken a cautious stance, given the volatile macroeconomic backdrop and rising financial pressures on lower-income consumers, who continue to face elevated living costs across categories.
Dollar Tree has been witnessing pressure on SG&A expenses in recent quarters due to higher operating costs and strategic business investments. Another major factor weighing on the company’s performance is likely to have been the timing of tariff impacts. Tariff-related pressures have been leading to higher costs and remain concerning.
On the margin front, our model predicts the gross margin to be flat year over year at 34.4% in the fiscal second quarter. Benefits from improved markdowns and merchandising execution are likely to have been offset by tariffs and higher freight costs.
Dollar Tree’s Zacks Model FindingsOur proven model does not predict an earnings beat for Dollar Tree this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is exactly the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
Dollar Tree currently has an Earnings ESP of 0.00% and a Zacks Rank of 2.
DLTR’s Stock Price & Valuation PictureFrom a valuation perspective, Dollar Tree shares present an attractive opportunity, trading at a discount relative to historical and industry benchmarks. With a forward 12-month price-to-earnings ratio of 17.36X, below the five-year median of 17.74X and the Retail-Discount Stores industry’s average of 30.2X, the company’s shares offer compelling value for investors seeking exposure to the sector.
Image Source: Zacks Investment Research
Recent market movements show that Dollar Tree’s shares have rallied 35.2% in the past three months against the industry’s 2.4% decline.
Image Source: Zacks Investment Research
Stocks With Favorable CombinationHere are some companies, which, according to our model, have the right combination of elements to post an earnings beat this season:
Victoria's Secret (VSXY - Free Report) has an Earnings ESP of +5.20% and currently sports a Zacks Rank of 1. The company is likely to register growth in the top and bottom lines when it reports second-quarter fiscal 2026 results. The consensus mark for VSXY’s quarterly revenues is pegged at $1.6 billion, which indicates an 11.2% rise from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus mark for VXSY’s quarterly earnings has moved up by a penny in the past 30 days to 77 cents per share. The consensus estimate indicates a significant 133% rise from the year-ago quarter’s actual. VSXY has an average trailing four-quarter earnings surprise of 81.9%.
Five Below Inc. (FIVE - Free Report) currently has an Earnings ESP of +20.80% and a Zacks Rank of 2. The company is likely to register growth in the top and bottom lines when it reports second-quarter fiscal 2026 results. The consensus mark for FIVE’s quarterly revenues is pegged at $1.2 billion, which indicates a 17.9% rise from the figure reported in the prior-year quarter.
The consensus mark for Five Below’s quarterly earnings has been unchanged in the past 30 days at $1.28 per share. The consensus estimate indicates an increase of 58% from the year-ago quarter’s actual. FIVE has an average trailing four-quarter earnings surprise of 70.1%.
Ulta Beauty Inc. (ULTA - Free Report) currently has an Earnings ESP of +0.41% and a Zacks Rank of 3. ULTA is likely to register top- and bottom-line growth when it reports second-quarter fiscal 2026 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $2.97 billion, which indicates 6.5% growth from the prior-year quarter’s actual.
The consensus estimate for earnings has moved up 0.3% in the past seven days to $6.19 per share, which implies 7.1% growth from the year-ago quarter's actual. ULTA has an average trailing four-quarter earnings surprise of 10%.
Dollar Tree v letošním fiskálním roce zavře přibližně 75 prodejen, i když dál rozšiřuje síť. Ve čtvrtletí otevřel 113 nových obchodů a výnosy stouply o 7,2 % na 5 miliard USD.
Store closures have become a common story in 2026. While food and restaurant chains like Five Guys, Pizza Hut, and Papa John’s tend to grab most of the headlines, this year has also seen closures from retail shopping brands like H&M and Glossier.
And now, another retailer is joining that list. Discount chain Dollar Tree Inc. has announced that it plans to close around 75 stores, even as it grows its overall footprint. Here’s what you need to know.
Dollar Tree to shutter 75 locationsDollar Tree is celebrating its 40th anniversary this year. But unfortunately, its 40th will also be marked by store closures.
On May 28, Dollar Tree reported its first-quarter fiscal 2026 results, which ended on May 2. Overall, those results were healthy. The chain reported net sales of $5 billion, an increase of 7.2% over the same quarter a year earlier. Its adjusted diluted earnings per share (EPS) also grew 38.1% to $1.74.
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During the same quarter, the company also opened 113 new Dollar Tree stores, bringing its total to 9,382 stores across the U.S. and Canada.
However, the company also announced that it would be closing some locations in fiscal 2026, which ends in January. Specifically, Dollar Tree said it will close approximately 75 locations during its current fiscal year.
While that number seems high, it represents less than 1% of all Dollar Tree stores.
Dollar Tree, Morgan Stanley a Accenture oznámily nové či navýšené odkupy akcií v souhrnu za 24,5 miliardy USD. Největší je Morgan Stanley s programem za 20 miliard USD.
In 1982, the U.S. Securities and Exchange Commission (SEC) adopted Rule 10b-18, providing companies with a safe harbor for qualifying share repurchases. Since then, publicly traded companies have been repurchasing their own shares in order to consolidate ownership and boost earnings per share (EPS). But for some firms, the timing of their stock buybacks indicates that management views the current share price as undervalued.
This year, companies are on a record-setting pace.
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According to Bloomberg, during the first four months of 2026, S&P 500 companies announced plans to repurchase $665 billion worth of shares, the highest total ever recorded in that same timeframe. And, based on historical rates, analysts now forecast authorized repurchases to reach $1.55 trillion for the full year.
Participating in that shopping spree are three companies that have recently announced a collective $24.5 billion in new, replenished, or increased share repurchase plans.
Dollar Tree: $2.5 Billion Buyback Adds Fuel to TurnaroundDollar Tree Today
$125.94 0.00 (0.00%)
As of 07/17/2026 04:00 PM Eastern
52-Week Range$84.71▼
$142.40P/E Ratio19.68
Price Target$122.68
On July 2, the board of directors for Dollar Tree NASDAQ: DLTR replenished its share repurchase authorization to the tune of $2.5 billion.
The board approved the authorization the previous day, and the amount represented approximately 10.7% of the company’s more than 192 million shares outstanding at the time
Although Dollar Tree’s current authorization doesn’t have an expiration date, the company had already been active in the market, repurchasing $500 million of stock in June under its previous authorization.
When the calendar turned to July, shares were down 5.13% year to date (YTD), presenting an opportunity as the stock’s momentum had recently shifted.
Since its YTD low of $86.80 on May 13, DLTR has gained nearly 48% and now trades around 10% lower than its 52-week high of $142.40. The current rally can be partly attributed to July 8 upgrades from Raymond James (Outperform rating) and Goldman Sachs (from Sell to Neutral), as well as upwardly revised full-year guidance, with forecasted EPS increasing to a range of $6.70 to $7.10.
With a low-volatility beta of 0.65, a TradeSmith financial health indicator that has been green for about a month, and more than 97% institutional ownership, the discount retailer’s buyback aligns with Wall Street’s improving sentiment. After posting EPS beats for five consecutive quarters and six out of the last seven, Dollar Tree is expected to report Q2 earnings on Sept. 2.
Morgan Stanley: $20 Billion Buyback Reinforces Earnings MomentumMorgan Stanley Today
MS
Morgan Stanley
$215.27 -0.23 (-0.11%)
As of 07/17/2026 03:59 PM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$136.17▼
$232.25Dividend Yield1.86%
P/E Ratio17.40
Price Target$220.80
Ahead of its record-breaking Q2 earnings report on July 15, Morgan Stanley NYSE: MS reauthorized a massive $20 billion buyback—good for 5.6% of its shares outstanding—on June 24.
The company’s current multi-year repurchase authorization doesn’t have an expiration date, and shares have ticked up slightly since the most recent buyback.
Q2 marks the second consecutive quarter the investment bank announced all-time high EPS and revenue, with the firm attributing its recent success to a 69% year-over-year jump in equity trading, an increase in investment banking deals and hitting a $10 trillion milestone in total client assets under management, including a record $148 billion in net new assets.
In Q2, the company spent $1.5 billion on its own shares, and since its YTD low on March 12, shares are up nearly 48%. The stock carries a consensus Moderate Buy rating, while current short interest is just 1.12% of the float.
Accenture: $2 Billion Bet That Its Stock Is UndervaluedAccenture Today
$143.56 -0.01 (-0.01%)
As of 07/17/2026 03:59 PM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$118.15▼
$291.09Dividend Yield4.54%
P/E Ratio11.47
Price Target$192.96
On June 23, global professional services and consulting firm Accenture NYSE: ACN announced a $2 billion increase to its fiscal 2026 share repurchase program that accounts for 2.4% of its shares outstanding.
From management’s perspective, the authorization comes at an opportune time: Shares of ACN are down around 46% YTD, and nearly 53% off of their 52-week high.
That $2 billion repurchase plan was an increase that brought its 2026 authorization to $7.5 billion.
The company has until Aug. 31 to exhaust those funds, with CEO Julie Sweet saying that “Accenture is at the center of AI-driven reinvention, and we do not believe our current share price reflects that position or the strength of our business fundamentals.”
Still, the firm faces an uphill battle in getting its stock near its 52-week high. In Accenture’s Q3, revenue growth slowed to 5.59%, with operating cash flow regressing to a quarter-over-quarter loss of 0.82%.
Meanwhile, the company’s financial health, according to TradeSmith, has been in the red for more than five months. But the stock’s consensus price target suggests around 33% potential upside from current prices. Over the past year, institutional inflows of more than $25 billion (compared to $13.25 billion in outflows) demonstrate that the smart money also sees a buy-low opportunity.
Should You Invest $1,000 in Dollar Tree Right Now?Before you consider Dollar Tree, you'll want to hear this.
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CHESAPEAKE, Va.--(BUSINESS WIRE)--Dollar Tree, Inc. (NASDAQ: DLTR) (the “Company”) today announced that its Board of Directors has replenished the Company’s share repurchase authorization to an aggregate amount of $2.5 billion, consistent with the authorization limit previously approved by the Board in July 2025. This new reauthorization includes any amounts remaining under the Company’s pre-existing program.
As recently announced, the Company repurchased $500 million of its common stock in June 2026 as part of a block trade involving selling stockholders including certain funds affiliated with Mantle Ridge LP. Following that transaction, the Company had approximately $700 million remaining under its existing $2.5 billion authorization.
"The replenishment of our share repurchase authorization reinforces our commitment to disciplined capital allocation and reflects our confidence in Dollar Tree's long-term growth," said Michel C. Creedon, Jr., Chief Executive Officer. "We remain focused on investing in strategic initiatives that support sustainable growth, maintaining financial strength and flexibility, and returning excess capital to shareholders over time.”
The Board’s authorization permits the Company to repurchase shares of its common stock from time to time in the open market or through privately negotiated transactions, subject to market and other conditions, up to the aggregate amount authorized by the Board. The Board’s authorization has no expiration date.
About Dollar Tree, Inc.
Dollar Tree, Inc., headquartered in Chesapeake, VA, is one of North America’s largest and most loved value retailers, known for delivering great value, convenience, and a “thrill-of-the-hunt” discovery shopping experience. With a team of approximately 150,000 associates, Dollar Tree operates more than 9,300 stores and 19 distribution centers across 48 contiguous states and seven Canadian provinces under the brands Dollar Tree and Dollar Tree Canada. The Company is committed to being a responsible steward of its business – supporting its people, serving its communities, and creating lasting value. To learn more about the Company, visit www.DollarTree.com.
A WARNING ABOUT FORWARD-LOOKING STATEMENTS: This press release contains "forward-looking statements" as that term is used in the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the fact that they address future events, developments or results and do not relate strictly to historical facts. Any statements contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements include, without limitation, statements preceded by, followed by or including words such as: “believe”, “anticipate”, “expect”, “intend”, “plan”, “view”, “target” or “estimate”, “may”, “will”, “should”, “predict”, “possible”, “potential”, “continue”, “strategy”, and similar expressions. For example, our forward-looking statements include statements regarding our plans and expectations concerning share repurchases, capital allocation, strategic and other growth initiatives, cash flow and other objectives and expectations. These statements are subject to risks and uncertainties. For a discussion of the risks, uncertainties and assumptions that could affect our future events, developments or results, you should carefully review the “Risk Factors,” “Business” and “Management's Discussion and Analysis of Financial Condition and Results of Operations” sections in our Annual Report on Form 10-K filed March 16, 2026, our Quarterly Report on Form 10-Q for the most recently ended fiscal quarter, and other filings we make from time to time with the Securities and Exchange Commission. We are not obligated to release publicly any revisions to any forward-looking statements contained in this press release to reflect events or circumstances occurring after the date of this report and you should not expect us to do so.
Dollar Tree zvýšila hrubou marži o 120 bazických bodů díky vyšším maržím zboží, levnější přepravě a nižším ztrátám. Firma ale očekává tlak na ziskovost kvůli vyšším cenám paliv a možnému růstu cel ve fiskálním roce 2026.
Key Takeaways Dollar Tree expanded gross margin 120 bps on higher merchandise margins, freight gains and lower shrink.Shrink reduction was the largest contributor to the quarterly gross margin beat.Dollar Tree expects higher fuel costs and potential tariff increases to pressure profitability in FY26. Dollar Tree, Inc. (DLTR - Free Report) delivered one of its strongest profitability performances in recent quarters, demonstrating the effectiveness of its ongoing operational and merchandising initiatives. Despite a challenging consumer environment and persistent tariff-related pressures, the company generated meaningful margin improvement through better execution across key areas of the business. Management highlighted progress in shrink reduction, merchandise optimization and cost controls, underscoring that many of the factors driving profitability are company-specific and within its control.
Margin performance stood out in the quarter. Gross margin expanded 120 basis points year over year, supported by higher merchandise margins, freight favorability and lower shrink. Adjusted operating margin also improved 110 basis points to 9.5%, reflecting stronger execution across controllable areas of the business. These gains came despite headwinds from higher tariffs and markdown activity, underscoring Dollar Tree’s ability to protect profitability through operational discipline.
A key contributor to the margin expansion was the company's progress in reducing shrink — an area management has aggressively targeted through its Gold Store standards, enhanced audits, improved training and product-protection initiatives. Executives indicated that shrink improvement was the single largest contributor to the quarterly gross margin beat. At the same time, inventory discipline has improved significantly, with inventory declining 9% year over year despite sales growth of 7.2%. Better inventory management, improved merchandise productivity and a more efficient supply chain are creating a stronger foundation for sustainable profitability.
The key question now is whether these gains can continue amid an uncertain tariff environment. Management remains cautiously optimistic, noting that operational improvements are largely within its control and should continue to support margins. However, the company expects higher fuel costs and potential tariff increases in the second half of fiscal 2026, which could create fresh pressure on profitability. Even so, Dollar Tree's ongoing shrink-reduction efforts, disciplined cost management and growing contribution from higher-margin multi-price merchandise position the retailer to offset at least part of these external headwinds. If execution remains strong, margin expansion could remain an important earnings driver despite the tariff uncertainty ahead.
DLTR’s Price Performance, Valuation & EstimatesShares of this Zacks Rank #2 (Buy) company have gained 7% in the past three months against the industry’s loss of 1.5%.
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From a valuation standpoint, DLTR trades at a forward price-to-earnings ratio of 15.69X compared with the industry’s average of 31.25X.
The Zacks Consensus Estimate for DLTR’s current fiscal-year sales and earnings implies year-over-year growth of 6.5% and 21.5%, respectively. For the next fiscal year, the consensus estimate indicates a 6.2% rise in sales and 10.2% growth in earnings. The company’s EPS estimate for both fiscal years has remained stable in the past seven days.
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The consensus estimate for Ross Stores’ current fiscal-year sales and earnings suggests growth of 9.1% and 17.1%, respectively, from the year-ago figures.
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The Zacks Consensus Estimate for Five Below’s current fiscal-year sales and earnings suggests growth of 14.7% and 31.7%, respectively, from the year-ago figures.
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The Zacks Consensus Estimate for current fiscal-year sales and earnings implies growth of 13.8% and 36.3%, respectively, from the year-ago reported figures. TPR has delivered a trailing four-quarter earnings surprise of 15.6%, on average.
