Dollar Tree, Inc. stock research
FY2026 Q1
Dollar Tree (DLTR) Gross Margin — Quarter Ended May 2, 2026
Revenue and gross profit increased compared to the same quarter last year but decreased from the prior quarter. Gross margin improved year over year yet weakened sequentially.
Gross margin takeaway
Quarter ended May 2, 2026 · FY2026 Q1
Revenue and gross profit increased compared to the same quarter last year but decreased from the prior quarter. Gross margin improved year over year yet weakened sequentially.
- The year-over-year improvement in gross margin is the strongest observable signal, while the sequential decline reflects a shift from the prior quarter's higher margin.
- Compared to the prior quarter, revenue, gross profit, and gross margin were all lower. Versus the same quarter last year, revenue, gross profit, and gross margin were all higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
36.8%
Gross profit
$1.8B
Revenue
$5.0B
Cost of revenue
$3.1B
Quarter-over-quarter change
-2.3 pts
Year-over-year change
+1.2 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 |
|---|---|---|---|---|
| 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% |
| May 2, 2026 | $5.0B | $1.8B | $3.1B | 36.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jan 31, 2026
-2.3 pts
Year-over-year change
May 3, 2025
+1.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The year-over-year improvement in gross margin is the strongest observable signal, while the sequential decline reflects a shift from the prior quarter's higher margin.
Compared to the prior quarter, revenue, gross profit, and gross margin were all lower. Versus the same quarter last year, revenue, gross profit, and gross margin were all higher.
Monitor the trend in cost of revenue relative to revenue in upcoming quarters.
Peer context
Latest available gross margins for related public companies.
| Company | Gross margin |
|---|---|
| Dollar Tree, Inc. (DLTR) | 36.8% |