Dollar General shares rose 8.3% to $133.30 in Thursday premarket trading after the discount retailer reported stronger-than-expected fiscal second-quarter results and raised its full-year outlook.

For the quarter ended July 31, Dollar General reported earnings of $2.48 per share, up from $1.86 in the same period a year earlier and well ahead of the $2.01 expected by analysts. Revenue came in at $11.3 billion, a 5.2% increase from a year earlier and slightly above the $11.2 billion consensus estimate.

Comparable store sales rose 3.5% from the prior-year period. Store traffic increased 2%, while average transaction value climbed 1.5%. Profitability also improved, with operating profit up 29.2% to $769.2 million and gross margin expanding 127 basis points to 32.6%. The gains came across a footprint of more than 20,000 U.S. stores, many of them in rural and small-town communities where Dollar General is often the closest option for everyday essentials.

$DG Q2’26 EARNINGS HIGHLIGHTS Net Sales: $11.3B (Est. $11.19B) ; +5.2% YoY EPS: $2.48 (Est. $2.00) ; +33.3% YoY Same-Store Sales: +3.5% Operating Profit: $769.2M; +29.2% YoY Gross Margin: 32.6%; +127 bps YoY FY26 Guide Raised: EPS: $7.80-$8.00 (Est. $7.39)… pic.twitter.com/eNTjb90iMo

— Wall St Engine (@wallstengine) August 27, 2026

The company also raised its annual earnings guidance to $7.80 to $8.00 per share, up from a prior range of $7.20 to $7.45. Dollar General lifted its net sales growth forecast to 4% to 4.3%, compared with an earlier estimate of 3.7% to 4.2%, and increased its comparable sales outlook to 2.5% to 2.9% from 2.2% to 2.7%. The updated outlook covers the remainder of a fiscal year that runs through late January, including the holiday period that is typically the biggest selling season for U.S. retailers.

FactSet data showed analysts had been expecting full-year earnings of about $7.40 per share, meaning the updated guidance comes in well above that estimate.

The stock had already been under pressure before the earnings release, falling roughly 7.5% year to date through Wednesday's close. Investors had been weighing several challenges, including persistently high fuel costs, which can weigh more heavily on Dollar General's lower-income customer base, and competitive price cuts at Walmart, which could force Dollar General to match discounts and pressure margins.

Walmart's earnings report last week also disappointed investors with weaker comparable sales, fueling concerns that Dollar General could face a similar reaction. In addition, the company's newly appointed CEO continues to work on building investor confidence following the leadership transition.

Even so, Dollar General has topped earnings expectations in each quarter for more than a year. Analysts do not expect the company's earnings per share to return to double-digit levels until fiscal 2031, though the retailer generated more than $10 per share annually from 2021 through 2023.

The company continues to benefit from consumer demand for value-oriented shopping as households look for lower-cost alternatives amid higher living expenses. With the raised outlook setting a higher bar for the months ahead, attention now shifts to whether traffic and margin gains hold through the holiday quarter as Walmart presses its price-cutting strategy and elevated fuel costs keep straining lower-income household budgets. Dollar General ended Wednesday's regular session up 0.2% before Thursday's premarket rally.