Petco Health and Wellness (NASDAQ:WOOF) Issues Earnings Results, Beats Expectations By $0.06 EPS

Petco Health and Wellness (NASDAQ:WOOF) issued its quarterly earnings results on Wednesday. The company reported $0.13 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.07 by $0.06, FiscalAI reports. Petco Health and Wellness had a return on equity of 3.48% and a net margin of 0.51%.The business had revenue of $1.49 billion for the quarter, compared to the consensus estimate of $1.49 billion. During the same quarter in the prior year, the business posted $0.05 earnings per share.

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 Trading Down 4.2%

NASDAQ WOOF opened at $2.52 on Friday. The company has a market cap of $814.87 million, a price-to-earnings ratio of 25.20, a price-to-earnings-growth ratio of 3.05 and a beta of 1.53. Petco Health and Wellness has a twelve month low of $2.24 and a twelve month high of $3.96. The company has a quick ratio of 0.29, a current ratio of 0.85 and a debt-to-equity ratio of 1.27. The business’s fifty day moving average is $2.71 and its 200 day moving average is $2.74.

Key Petco Health and Wellness News

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

• Positive Sentiment: Petco reported second-quarter EPS of $0.13, above the roughly $0.07 consensus estimate and up from $0.05 a year earlier. Revenue was $1.49 billion, in line with expectations. Petco Reports Second Quarter 2026 Results
• Positive Sentiment: Management said the company delivered its second consecutive quarter of positive comparable-sales growth and profitability ahead of its outlook. Net income reached $38.7 million, while operating cash flow nearly doubled, although results benefited partly from a one-time tariff refund. Petco surges as profit beat gives turnaround another boost
• Positive Sentiment: Petco reaffirmed its fiscal 2026 sales outlook and forecast adjusted EBITDA of $415 million to $430 million. The company also announced a $75 million debt prepayment, supporting its goal of reducing leverage to twice EBITDA. Petco fiscal 2026 outlook
• Neutral Sentiment: Analyst views remain mixed. Robert W. Baird raised its price target to $3.25 while maintaining a Neutral rating, and UBS cut its target to $3.50 but retained Neutral. Benzinga analyst actions
• Negative Sentiment: BNP Paribas Exane lowered its target to $2.11 and assigned an Underperform rating, signaling concern that Petco’s turnaround may not justify the stock’s valuation.
• Negative Sentiment: Revenue was essentially flat year over year, and management’s outlook calls for only flat to 1.5% sales growth. That limited top-line expansion, combined with the low net margin, is tempering enthusiasm despite improved profitability.

Insider Buying and Selling

In other news, insider Holly May sold 200,000 shares of Petco Health and Wellness stock in a transaction dated Thursday, July 9th. The stock was sold at an average price of $2.54, for a total transaction of $508,000.00. Following the sale, the insider directly owned 1,327,867 shares of the company’s stock, valued at approximately $3,372,782.18. This trade represents a 13.09% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Insiders sold 450,000 shares of company stock valued at $1,145,500 in the last ninety days. 6.50% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Petco Health and Wellness

A number of institutional investors have recently added to or reduced their stakes in the business. Zacks Investment Management bought a new position in shares of Petco Health and Wellness during the fourth quarter valued at $94,000. Gotham Asset Management LLC lifted its holdings in Petco Health and Wellness by 33.9% during the 4th quarter. Gotham Asset Management LLC now owns 319,035 shares of the company’s stock worth $896,000 after buying an additional 80,804 shares during the period. Schonfeld Strategic Advisors LLC acquired a new position in Petco Health and Wellness during the 4th quarter worth about $108,000. Abel Hall LLC bought a new stake in shares of Petco Health and Wellness in the 4th quarter valued at about $31,000. Finally, Jump Financial LLC acquired a new stake in shares of Petco Health and Wellness in the fourth quarter valued at about $866,000.

Wall Street Analysts Forecast Growth

A number of analysts have recently weighed in on the company. UBS Group cut their target price on Petco Health and Wellness from $4.00 to $3.50 and set a “neutral” rating for the company in a research report on Thursday. Wall Street Zen upgraded Petco Health and Wellness from a “hold” rating to a “buy” rating in a research report on Saturday, July 4th. Zacks Research downgraded Petco Health and Wellness from a “strong-buy” rating to a “hold” rating in a research note on Monday, May 18th. BNP Paribas Exane cut their price objective on shares of Petco Health and Wellness from $2.34 to $2.11 and set an “underperform” rating for the company in a research report on Thursday. Finally, Weiss Ratings reiterated a “sell (d)” rating on shares of Petco Health and Wellness in a research note on Thursday, June 11th. One equities research analyst has rated the stock with a Buy rating, six have assigned a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of “Reduce” and a consensus target price of $3.42.

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.