Dollar General (DG) Q4 Fiscal Year 2025 Earnings: Revenue Hits $10.91 Billion 

Dollar General delivered a standout fourth quarter with diluted EPS of $1.93, crushing the $1.60 consensus estimate by 20.6%, while revenue rose 5.9% year-over-year to $10.91 billion, topping the $10.8 billion expectation. Same-store sales surged 4.3% on strong customer traffic. Despite the massive beat, shares dipped more than 3% on March 12 as investors weighed cautious fiscal 2026 guidance against the strong results.

About Dollar General

Dollar General Corporation (NYSE: DG) is one of America’s largest discount retailers, founded in 1939 and headquartered in Goodlettsville, Tennessee. The company operates over 20,900 stores across the United States under the Dollar General, DG Market, DGX, and pOpshelf banners, as well as Mi Super Dollar General stores in Mexico.

It serves as “America’s neighborhood general store,” providing everyday essentials including food, health and wellness products, cleaning supplies, self-care and beauty items, and seasonal goods from both high-quality private brands and globally trusted names like Coca Cola, Procter & Gamble, and Nestle.

The company trades at a market capitalization of approximately $31.9B​ with a trailing P/E ratio of 25.02​ and trailing twelve-month EPS of $5.79​. Dollar General employs approximately 194,200 people and has been led by CEO Todd J. Vasos, who returned to the helm in 2023 to spearhead a “Back to Basics” turnaround strategy. The stock last closed at $146.00​ on March 11, 2026, with a 52-week range between $76.44 and $158.23. During the prior 12-month period, the stock surged approximately 104.5%, significantly outperforming the S&P 500.

Top Financial Highlights

1. Net sales in the fourth quarter reached $10.91 billion, reflecting 5.9% growth year over year compared with $10.30 billion in the same quarter of the previous year.
2. Diluted earnings per share in the fourth quarter increased to $1.93, representing 121.8% growth compared with $0.87 in the prior year quarter, which had been affected by $232 million in store closure and pOpshelf impairment charges.
3. Same store sales in the fourth quarter increased 4.3%, supported by 2.6% growth in customer traffic and 1.7% increase in the average transaction value.
4. Operating profit in the fourth quarter reached $606 million, representing an increase of about 106% compared with $294.2 million recorded in the same period of fiscal 2024.
5. Gross margin in the prior year fourth quarter stood at 29.4%, while the current quarter showed improvement supported by higher inventory markups and lower shrink levels.
6. Total net sales for fiscal year 2025 reached $42.7 billion, representing 5.2% growth compared with approximately $40.6 billion in the previous fiscal year.
7. Same store sales for fiscal year 2025 increased 3.0%, driven by 1.6% growth in customer traffic and 1.4% increase in average transaction size.
8. Operating profit for fiscal year 2025 reached $2.2 billion, reflecting an increase of about 28% compared with $1.7 billion in the previous fiscal year.
9. Cash flow from operations for fiscal year 2025 totaled $3.6 billion, representing 21.3% growth compared with the previous year.
10. Merchandise inventory totaled $6.3 billion as of January 30, 2026, representing a 7.0% decline compared with $6.71 billion recorded on January 31, 2025, reflecting improved inventory management.
11. Capital expenditures for fiscal year 2025 reached $1.2 billion, supporting store improvements and the expansion of new retail locations.
12. Guidance for fiscal year 2026 indicates diluted earnings per share between $7.10 and $7.35, compared with the consensus estimate of $7.17.
13. Cash and cash equivalents stood at $932.6 million as of January 31, 2025.
14. Long term debt totaled $5.72 billion at the end of fiscal year 2024, while $1.1 billion in senior notes were redeemed during fiscal 2025 to reduce interest expenses.

Beat or Miss?

The EPS beat was particularly impressive at nearly 20%, marking Dollar General’s fifth consecutive quarter of exceeding earnings expectations. However, the fiscal 2026 net sales growth guidance came in slightly below Street expectations, which likely weighed on sentiment.

What Leadership Is Saying?

“Our strong fourth quarter and fiscal year results reflect our employees’ dedication to Serving Others. The increase in same-store sales and the success of our strategic initiatives contributed to substantial operating margin growth and EPS that surpassed our expectations.” – Todd Vasos, Chief Executive Officer​

Dollar General’s CFO Donny Lau, who rejoined the company in October 2025 after previously serving as SVP of Finance and Chief Strategy Officer, is leading the financial turnaround alongside Vasos. While a specific Q4 quote from Lau was not available in the earnings release, management has consistently highlighted disciplined cost controls, shrink reduction delivering a 68 basis point year-over-year improvement, and capital allocation focused on store remodels and debt paydown rather than share buybacks.

“As we transition into the first quarter, it’s clear that customers are opting for lower-priced alternatives. Numerous customers have conveyed that they can only allocate funds for essential goods, with some indicating they have been forced to compromise even on necessities.” – Todd Vasos, CEO (providing context on the consumer environment that underpins conservative forward guidance)​

Historical Performance

The year-over-year comparison highlights the dramatic turnaround from fiscal 2024’s Q4, which was burdened by $232 million in store closure and pOpshelf impairment charges.

For the full fiscal year, the trajectory tells a compelling turnaround story:

Competitor Performance Comparison

Comparing Dollar General’s fourth quarter performance against key discount retail peers provides context for its competitive positioning.

Dollar General stands out with the strongest sequential improvement in operating profit among the peer group, thanks to the elimination of prior-year impairment charges and sustained improvement in shrink and inventory management. Walmart continues to dominate on absolute scale, while Five Below and Dollar Tree are executing their own distinct strategies in the value retail space.

How the Market Reacted?

Despite the significant earnings beat, Dollar General shares declined more than 3% in pre-market trading on March 12, 2026. The stock had already appreciated by over 100% in the prior 52 weeks, suggesting much of the turnaround momentum was already priced in. Investor concerns centered on the fiscal 2026 net sales guidance, which came in slightly below consensus expectations, and broader macroeconomic headwinds including rising oil prices and their potential impact on the company’s cost structure and core low-income customer base.

Analyst sentiment heading into the report was mixed, with 16​ analysts covering the stock split evenly between 8 “Buy” and 8 “Hold” ratings, and zero “Sell” recommendations. The average analyst price target of $144.12​ sits slightly below the pre-earnings closing price of $146.00​, implying limited near-term upside from current levels. Oppenheimer holds the Street-high target of $170 with an Outperform rating, while Telsey Advisory Group and Piper Sandler maintain more cautious stances with targets of $130 and $132, respectively.