As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q2. Today, we are looking at non-discretionary retail stocks, starting with Dollar General (NYSE: DG).

Food is non-discretionary because it's essential for life (maybe not those Oreos?), so consumers naturally need a place to buy it. Selling food is a notoriously tough business, however, as the costs of procuring and transporting oftentimes perishable products and operating stores fit to sell those products can be high. Competition is also fierce because the alternatives are numerous. While online competition threatens all of retail, grocery is one of the least penetrated because of the nature of the product. Still, we could be one startup or innovation away from a paradigm shift.

The 10 non-discretionary retail stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 1.3% while next quarter’s revenue guidance was 0.7% below.

While some non-discretionary retail stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 3.6% since the latest earnings results.

Dollar General (NYSE: DG)

Appealing to the budget-conscious consumer, Dollar General (NYSE: DG) is a discount retailer that sells a wide range of household essentials, groceries, apparel/beauty products, and seasonal merchandise.

Dollar General reported revenues of $11.29 billion, up 5.2% year on year. This print exceeded analysts’ expectations by 1%. Overall, it was an exceptional quarter for the company with EPS guidance for next quarter exceeding analysts’ expectations and a beat of analysts’ EPS estimates.

The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $122.63.

Is now the time to buy Dollar General? Access our full analysis of the earnings results here, it’s free.

Best Q2: Target (NYSE: TGT)

With a higher focus on style and aesthetics compared to other large general merchandise retailers, Target (NYSE: TGT) serves the suburban consumer who is looking for a wide range of products under one roof.

Target reported revenues of $26.54 billion, up 5.3% year on year, outperforming analysts’ expectations by 1.5%. The business had an exceptional quarter with a beat of analysts’ EPS estimates and full-year EPS guidance exceeding analysts’ expectations.

The market seems content with the results as the stock is up 4.3% since reporting. It currently trades at $159.01.

Is now the time to buy Target? Access our full analysis of the earnings results here, it’s free.

Weakest Q2: Albertsons (NYSE: ACI)

With over 20 well-known grocery banners spanning 34 states, Albertsons (NYSE: ACI) operates food and drug retail stores across the US, offering groceries, pharmacy services, and own-brand products under banners like Safeway, Jewel-Osco, and Vons.

Albertsons reported revenues of $24.94 billion, flat year on year, exceeding analysts’ expectations by 0.6%. Still, it was a softer quarter as it posted full-year EBITDA guidance missing analysts’ expectations significantly and a significant miss of analysts’ EBITDA estimates.

Albertsons delivered the slowest revenue growth of the whole group. As expected, the stock is down 15.3% since the results and currently trades at $12.37.

Read our full analysis of Albertsons’s results here.

Walmart (NASDAQ: WMT)

Known for its large-format Supercenters, Walmart (NASDAQ: WMT) is a retail pioneer that serves a budget-conscious consumer who is looking for a wide range of products under one roof.

Walmart reported revenues of $187.9 billion, up 5.9% year on year. This result topped analysts’ expectations by 0.6%. However, it was a slower quarter as it recorded EPS guidance for next quarter missing analysts’ expectations significantly and full-year EPS guidance missing analysts’ expectations.

Walmart had the weakest guidance update in the group. The stock is down 6.5% since reporting and currently trades at $106.88.

Read our full, actionable report on Walmart here, it’s free.

BJ's (NYSE: BJ)

Appealing to the budget-conscious individual shopping for a household, BJ’s Wholesale Club (NYSE: BJ) is a membership-only retail chain that sells groceries, appliances, electronics, and household items, often in bulk quantities.

BJ's reported revenues of $6.23 billion, up 15.7% year on year. This print beat analysts’ expectations by 4.7%. It was an exceptional quarter as it also recorded a solid beat of analysts’ EBITDA estimates and full-year EPS guidance beating analysts’ expectations.

BJ's delivered the biggest analyst estimate beat and fastest revenue growth among its peers. The stock is up 1.2% since reporting and currently trades at $92.40.

Read our full, actionable report on BJ's here, it’s free.

Market Update

Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership.

Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products.

By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals.

Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.