Dollar General Corporation stock research
FY2025 Q3
Dollar General (DG) Gross Margin — Quarter Ended Oct 31, 2025
In the current quarter, gross profit and gross margin were lower than the prior quarter as cost of revenue increased while revenue decreased. Compared to the same quarter last year, both revenue and gross profit were higher, with gross profit growing at a faster pace, leading to an improved gross margin.
Gross margin takeaway
Quarter ended Oct 31, 2025 · FY2025 Q3
In the current quarter, gross profit and gross margin were lower than the prior quarter as cost of revenue increased while revenue decreased. Compared to the same quarter last year, both revenue and gross profit were higher, with gross profit growing at a faster pace, leading to an improved gross margin.
- The gross margin improved year-over-year because gross profit increased more than revenue. Sequentially, the margin declined as cost of revenue rose while revenue fell.
- Compared to the immediately preceding quarter, gross margin weakened due to lower revenue and higher cost of revenue. Compared to the same quarter one year earlier, gross margin strengthened reflecting a larger increase in gross profit relative to revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
29.9%
Gross profit
$3.2B
Revenue
$10.6B
Cost of revenue
$7.5B
Quarter-over-quarter change
-1.4 pts
Year-over-year change
+1.1 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jan 31, 2025 | $10.3B | $3.0B | $7.3B | 29.4% |
| May 2, 2025 | $10.4B | $3.2B | $7.2B | 31.0% |
| Aug 1, 2025 | $10.7B | $3.4B | $7.4B | 31.3% |
| Oct 31, 2025 | $10.6B | $3.2B | $7.5B | 29.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Aug 1, 2025
-1.4 pts
Year-over-year change
Nov 1, 2024
+1.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improved year-over-year because gross profit increased more than revenue. Sequentially, the margin declined as cost of revenue rose while revenue fell.
Compared to the immediately preceding quarter, gross margin weakened due to lower revenue and higher cost of revenue. Compared to the same quarter one year earlier, gross margin strengthened reflecting a larger increase in gross profit relative to revenue.
Monitor the trajectory of cost of revenue relative to revenue, as cost increased while revenue declined sequentially.