Petco Health and Wellness (NASDAQ:WOOF) Releases Quarterly Earnings Results, Beats Estimates By $0.06 EPS

Petco Health and Wellness (NASDAQ:WOOF) posted its quarterly earnings results on Wednesday. The company reported $0.13 EPS for the quarter, beating the consensus estimate of $0.07 by $0.06, FiscalAI reports. The business had revenue of $1.49 billion for the quarter, compared to analysts’ expectations of $1.49 billion. Petco Health and Wellness had a net margin of 0.09% and a return on equity of 1.36%. During the same period in the previous year, the company posted $0.05 EPS.

Here are the key takeaways from Petco Health and Wellness’ conference call:

• Petco reported its second consecutive quarter of positive comparable sales, with Q2 comps up 0.6% and sales slightly higher year over year at $1.5 billion. Adjusted EBITDA was $122 million, or $115 million excluding a $6.8 million tariff refund, exceeding the company’s outlook.
• The national relaunch of Petco Perks drove point redemptions well above expectations, creating a mid-single-digit-million-dollar sales impact, particularly in services. Management says peak redemptions are behind the company, but expects the program’s personalization and loyalty benefits to become more meaningful in 2027.
• Management highlighted improving trends in consumables, cat products, veterinary services, and cross-channel shopping. Veterinary visits and doctor days grew double digits, while Autoship is now being introduced in stores and the company plans to resume opening new veterinary hospitals in 2027.
• Petco reaffirmed full-year guidance for sales ranging from flat to up 1.5% and adjusted EBITDA of $415 million to $430 million. Strong cash generation supported an additional $75 million voluntary debt repayment, bringing total debt paydown over the past nine months to $170 million.
• The company continues to face a soft dog category, store closures, and manageable but rising supply-chain costs, including fuel and freight pressure. Growth investments in new assortments, private-label products, remodeled stores, and fresh food are expected to build gradually rather than produce a near-term step-change.

Petco Health and Wellness Stock Performance

Shares of WOOF opened at $2.63 on Thursday. The company has a market capitalization of $850.43 million, a PE ratio of 131.57, a price-to-earnings-growth ratio of 2.99 and a beta of 1.53. The company has a debt-to-equity ratio of 1.27, a current ratio of 0.85 and a quick ratio of 0.29. Petco Health and Wellness has a one year low of $2.24 and a one year high of $3.96. The company’s fifty day moving average price is $2.71 and its 200 day moving average price is $2.74.

Analyst Upgrades and Downgrades

WOOF has been the subject of several recent analyst reports. Zacks Research downgraded Petco Health and Wellness from a “strong-buy” rating to a “hold” rating in a research note on Monday, May 18th. Weiss Ratings reissued a “sell (d)” rating on shares of Petco Health and Wellness in a research note on Thursday, June 11th. Wall Street Zen raised Petco Health and Wellness from a “hold” rating to a “buy” rating in a research note on Saturday, July 4th. Finally, Citigroup reduced their target price on Petco Health and Wellness from $4.00 to $3.25 and set a “neutral” rating for the company in a report on Thursday, June 4th. One research analyst has rated the stock with a Buy rating, five have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Hold” and a consensus target price of $3.82.

Petco Health and Wellness News Summary

Here are the key news stories impacting Petco Health and Wellness this week:

• Positive Sentiment: Petco reported Q2 fiscal 2026 EPS of $0.13, above the $0.07 analyst consensus and up from $0.05 a year earlier. Net income reached $38.7 million, while operating cash flow nearly doubled. The company also delivered its second consecutive quarter of positive comparable-sales growth. Petco Reports Second Quarter 2026 Results
• Positive Sentiment: Management announced a $75 million debt prepayment, advancing its goal of reducing leverage to twice adjusted EBITDA. This could lower interest costs and improve balance-sheet flexibility. Petco Reports Second Quarter 2026 Results
• Positive Sentiment: The “Reach for the Sky” strategy is showing early progress through growth in consumables, services, omnichannel sales and expanded service offerings. Investors also received fresh Wall Street price-target increases ahead of the results. The Market Is Finally Starting To Come Around To Petco Health and Wellness Company
• Neutral Sentiment: Q2 revenue was $1.49 billion, essentially matching estimates, while fiscal 2026 revenue guidance remained flat to up 1.5% at approximately $6.0 billion to $6.1 billion. Adjusted EBITDA guidance was set at $415 million to $430 million, indicating that the earnings improvement is primarily a profitability story rather than a major sales-growth story. Petco Fiscal 2026 Guidance
• Negative Sentiment: Some of the cash-flow improvement benefited from a one-time tariff refund, and Petco continues to operate with thin net margins and relatively high leverage. Flat sales guidance and limited liquidity remain risks if the turnaround loses momentum. Petco Profit Rises in Q2

Insider Transactions at Petco Health and Wellness

In other Petco Health and Wellness news, insider Holly May sold 200,000 shares of the company’s stock in a transaction dated Thursday, July 9th. The shares were sold at an average price of $2.54, for a total transaction of $508,000.00. Following the completion of the sale, the insider directly owned 1,327,867 shares in the company, valued at $3,372,782.18. This represents a 13.09% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Insiders have sold 450,000 shares of company stock worth $1,145,500 in the last three months. 6.50% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Petco Health and Wellness

Several large investors have recently made changes to their positions in the business. Caitong International Asset Management Co. Ltd grew its holdings in Petco Health and Wellness by 425.1% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 10,523 shares of the company’s stock valued at $30,000 after buying an additional 8,519 shares during the last quarter. Abel Hall LLC acquired a new position in shares of Petco Health and Wellness during the fourth quarter worth approximately $31,000. Cibc World Market Inc. acquired a new position in shares of Petco Health and Wellness during the fourth quarter worth approximately $32,000. Quantbot Technologies LP bought a new stake in shares of Petco Health and Wellness in the third quarter valued at approximately $34,000. Finally, National Bank of Canada FI bought a new stake in shares of Petco Health and Wellness in the third quarter valued at approximately $35,000.

About Petco Health and Wellness

Petco Health and Wellness Company, Inc (NASDAQ: WOOF) is a leading U.S. pet specialty retailer focused on delivering products, services and solutions that improve the health and well-being of pets. The company operates a network of retail locations that provide high-quality pet food, supplies and accessories, along with a growing digital platform that supports online ordering, subscription delivery and telehealth consultations for pets.

In addition to its retail offerings, Petco has built a full suite of in-store and virtual services, including grooming, training, dog daycare and veterinary care.