Sandler Debra A. sold (to issuer) $36 of DG

Dollar General reported a Q1 beat, which Loop Capital Markets attributed to cost control despite adverse weather, higher gas prices, and reduced SNAP benefits. Loop maintained a Hold rating and raised its price target to $115. Management lifted full-year diluted EPS guidance to $7.20–$7.45. Guggenheim reiterated Buy, saying results were mixed and driven by SG&A. Shares were $104.94.

Dollar General reported Q1 net income up 13.3% and diluted EPS up 12.4%, beating expectations, and raised full-year earnings guidance by 10 cents at the midpoint, according to the company. Revenue was $10.8 billion, up 3.5% y/y, with comps up 2%. Analysts rate DG a Hold with a $140 target, implying ~30% upside.

Dollar General reported Q1 operating profit of $638.5M, up 10.8%, and operating margin up 40 bps to 5.9%, with SG&A at 25.7% of sales. Net interest expense fell to $47.2M; EPS rose 12.4% to $2.00. The company raised FY2026 guidance to diluted EPS $7.20–$7.45 and net sales growth 3.7%–4.2%.

U.S. stock index futures were muted as investors weighed Middle East developments and upcoming data. The ISM manufacturing index rose to 54.0 in May (vs 53.3 expected) and construction spending increased 0.4% m/m in April. Fed June pricing implies a 98.4% chance of no change. Traders also await JOLTS and earnings from Palo Alto Networks, Dollar General and Ulta.

SpaceX is reportedly seeking about a $1.75 trillion valuation in an IPO next week, with banks expected to earn hundreds of millions in fees. Palo Alto Networks said revenue rose as customers boosted cyber defenses. GameStop posted higher profit and launched a $2 billion buyback. GitLab plans to cut 14% of staff and exit 22 countries. Other items include Shake Shack cutting guidance and UniCredit advancing a Commerzbank takeover bid.

US stocks held near record highs as investors weighed Middle East tensions and valuation concerns, with IG’s Axel Rudolph saying Friday’s US non-farm payrolls will guide Fed expectations. April job openings rose by nearly 730,000 to 7.618 million. Alphabet plans an $80B stock sale for AI capex. Several companies reported results and guidance, including HPE and Signet.