Dollar General Corporation stock research
FY2025 Q4
Dollar General (DG) Gross Margin — Quarter Ended Jan 30, 2026
Revenue, gross profit, and cost of revenue all increased compared to both the prior quarter and the same quarter last year. Gross margin improved slightly versus both periods, reflecting that gross profit grew faster than cost of revenue relative to revenue.
Gross margin takeaway
Quarter ended Jan 30, 2026 · FY2025 Q4
Revenue, gross profit, and cost of revenue all increased compared to both the prior quarter and the same quarter last year. Gross margin improved slightly versus both periods, reflecting that gross profit grew faster than cost of revenue relative to revenue.
- The most observable driver of the margin change is the relationship between gross profit and revenue, which both increased while cost of revenue rose at a slower relative pace. This combination contributed to a higher gross margin.
- Compared to the immediately preceding quarter, gross margin was higher; compared to the same quarter one year earlier, gross margin was also higher. The improvement was consistent across both comparisons, although the magnitude of the change was modest.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
30.4%
Gross profit
$3.3B
Revenue
$10.9B
Cost of revenue
$7.6B
Quarter-over-quarter change
+0.5 pts
Year-over-year change
+1.0 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 |
|---|---|---|---|---|
| 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% |
| Jan 30, 2026 | $10.9B | $3.3B | $7.6B | 30.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Oct 31, 2025
+0.5 pts
Year-over-year change
Jan 31, 2025
+1.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable driver of the margin change is the relationship between gross profit and revenue, which both increased while cost of revenue rose at a slower relative pace. This combination contributed to a higher gross margin.
Compared to the immediately preceding quarter, gross margin was higher; compared to the same quarter one year earlier, gross margin was also higher. The improvement was consistent across both comparisons, although the magnitude of the change was modest.
Monitor the trend in cost of revenue relative to revenue, as a faster increase could pressure gross margin in future periods.