Dollar Tree, Inc. stock research
FY2025 Q4
Dollar Tree (DLTR) Gross Margin — Quarter Ended Jan 31, 2026
Revenue increased while cost of revenue grew at a slower pace, resulting in higher gross profit and an improved gross margin. The gross margin rate was higher than both the immediately preceding quarter and the same quarter one year earlier.
Gross margin takeaway
Quarter ended Jan 31, 2026 · FY2025 Q4
Revenue increased while cost of revenue grew at a slower pace, resulting in higher gross profit and an improved gross margin. The gross margin rate was higher than both the immediately preceding quarter and the same quarter one year earlier.
- The strongest observable margin driver is the improvement in gross margin rate relative to both comparison periods, which was accompanied by revenue growth outpacing cost of revenue growth.
- Gross margin improved compared to the prior quarter and also improved compared to the same quarter one year earlier.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
39.1%
Gross profit
$2.1B
Revenue
$5.4B
Cost of revenue
$3.3B
Quarter-over-quarter change
+3.3 pts
Year-over-year change
+1.5 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 3, 2025 | $4.6B | $1.6B | $3.0B | 35.6% |
| Aug 2, 2025 | $4.6B | $1.6B | $3.0B | 34.4% |
| Nov 1, 2025 | $4.7B | $1.7B | $3.0B | 35.8% |
| Jan 31, 2026 | $5.4B | $2.1B | $3.3B | 39.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Nov 1, 2025
+3.3 pts
Year-over-year change
Feb 1, 2025
+1.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the improvement in gross margin rate relative to both comparison periods, which was accompanied by revenue growth outpacing cost of revenue growth.
Gross margin improved compared to the prior quarter and also improved compared to the same quarter one year earlier.
The filing notes that working capital requirements are seasonal, peaking in September and October; this pattern may be relevant to future cost of revenue trends.