Dollar Tree reported a 38% year-over-year increase in adjusted earnings per share to $1.74 for its first quarter of fiscal 2026 and raised its full-year adjusted EPS guidance to $6.70 to $7.10 from the prior range of $6.50 to $6.90. The stock trades at 15.39 times forward 12-month earnings, below the Zacks sub-industry average of 31.39 times, the broader Zacks sector at 22.78 times, and the S&P 500 at 21.34 times. However, comparable sales growth of 3.5% was driven entirely by a 4.5% increase in average ticket, as traffic declined 1%, while selling, general and administrative expenses rose 50 basis points to 27.8% of revenue. The company ended the quarter with $1 billion in cash, no borrowings under its credit facilities, and free cash flow of $392 million, and it repurchased about $595 million of shares. Dollar Tree currently carries a Zacks Rank #3 (Hold), with a VGM Score of A, Growth Score of A, Momentum Score of A, and Value Score of B, reflecting a mixed risk-reward profile.
Dollar Tree IncEarnings beat and raised guidance, strong cash flow and buyback
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