Earnings season kept delivering, and the IPO market is heating up — with Quantinuum, INNIO, and SpaceX all in the pipeline. Here's the daily recap.

Dollar General Beats on Profit, Raises Guidance

Discount retailer Dollar General (DG) reported Q1 2026 results this morning. Revenue came in at $10.8 billion, up 3.4% year-over-year and slightly below the $10.82 billion consensus. But earnings told a different story: diluted EPS of $2.00 beat analyst estimates of $1.88–$1.89 by roughly 6% and marked 12.4% growth over last year.

Same-store sales rose 2.0%, driven by traffic and ticket growth across categories. Gross margin improved to 31.6% (up 65 bps), helped by lower shrink and inventory markdowns. Operating profit rose 10.8% to $638.5 million, and net income climbed 13.3% to $444.1 million.

Dollar General raised its full-year fiscal 2026 outlook on revenue, comparable sales, and EPS. The stock traded modestly lower in early trading — the slight revenue miss weighed, but the EPS beat and improved guidance kept the damage in check.

HPE Still Celebrating — AI Infrastructure Boom Continues

Hewlett Packard Enterprise (HPE) is still riding the wave from yesterday's blowout report. The company reported a record fiscal Q2 with revenue of $10.7 billion, up 40% year-over-year and well above the ~$9.79 billion consensus. Non-GAAP EPS of $0.79 more than doubled year-over-year and crushed the company's own guide of $0.51–$0.55, as well as consensus estimates.

The AI and Cloud segment drove roughly $7.71 billion in revenue. HPE shares surged about 30% on the news and continue to trade at record levels. Management called it a "record quarter" that puts the company two years ahead of its fiscal 2028 long-term targets.

Tonight's Headline Reports — After the Close

Three major reports are due after market close today. Palo Alto Networks (PANW) reports fiscal Q3, with revenue expected around $2.94 billion and non-GAAP EPS near $0.80. Ulta Beauty (ULTA) releases Q1 results, with analysts looking for revenue of $3.08–$3.12 billion. GitLab (GTLB) reports fiscal Q1 2027, with revenue guidance of $253–$255 million.

IPO Market Heats Up — Quantinuum, INNIO, and SpaceX

The IPO market is seeing its strongest momentum in months. Quantinuum (ticker: QNT), the Honeywell-backed quantum computing company, expanded its IPO in an amended S-1 filing to 26.5 million shares priced at $53–$55 — up sharply from the prior $45–$50 range. The deal could raise up to $1.46 billion, valuing the company at roughly $14.3 billion. Pricing is expected Wednesday evening, with trading to begin Thursday on the Nasdaq.

INNIO, the Munich-based gas engine manufacturer (Jenbacher and Waukesha brands), continues its roadshow with 75 million shares at $24–$27, implying a roughly $19 billion market cap. Pricing and trading are also expected this week. The company benefits from AI-driven electricity demand for data centers.

Meanwhile, SpaceX (ticker: SPCX) is advancing toward what would be the largest IPO in history. The company filed its public S-1 roughly two weeks ago and is expected to launch its roadshow as soon as June 4. Pricing is targeted around June 11, with a potential valuation of $1.75–$2 trillion. Notably, SpaceX plans to allocate up to 30% of shares to retail investors through platforms including Robinhood, Fidelity, and Charles Schwab.

Anthropic also confidentially submitted a draft S-1, though no timeline has been set.

Market — Near All-Time Highs, Cautiously

Major indexes are trading near Monday's record closes, with the S&P 500 hovering around 7,600. Chip and AI stocks continue to provide support, especially for the Nasdaq, but there's also an undertone of profit-taking after the recent sharp gains. The Dow opened lower before recovering modestly.

The Bottom Line

Two eventful days: Dollar General proved there's profit to be made even in a challenging retail environment; HPE continues to quantify the AI boom in concrete numbers; and the IPO market — from Quantinuum to SpaceX — is starting to feel like the early days of the internet era. Tonight: Palo Alto Networks, Ulta Beauty, and GitLab round out the picture.