EarningsQ2 2026 Earnings Report
MX:WOOF Q2 2026 EPS Results
Actual EPS$1.51
Consensus EPS$1.28
Beat/MissBeat by +$0.23
One Year Ago EPS$1.60
MX:WOOF Q2 2026 Revenue Results
Actual Revenue$26.75B
Expected Revenue$26.81B
Beat/MissMissed by -$65.06M
YoY Revenue Growth+0.05%
Earnings Announcement Details
QuarterQ2 2026
Date09/02/2026
TimeAfter Close
Conference CallWednesday, September 2, 2026
MX:WOOF Upcoming Earnings
Petco Health and Wellness Company's next earnings date is estimated for December 2, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
MX:WOOF Q2 2026 Earnings Call
0:00 / 0:00
Q2 2026 Earnings Slide Deck
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was predominantly positive. Petco delivered a second consecutive quarter of positive comparable sales, exceeded its normalized EBITDA outlook, generated strong cash flow, reduced debt and reaffirmed full-year guidance. Management also cited improving customer trends, veterinary growth, cat-category momentum, e-commerce recovery and encouraging store-format results. The principal negatives were the temporary sales impact from the Petco Perks relaunch, continued softness in the dog business, ongoing manageable supply-chain headwinds, slower-than-expected owned-brand progress and continued weakness in supplies.Company Guidance
Second Consecutive Positive Comparable Sales Quarter
Second-quarter net sales were $1.5 billion, up slightly from last year, with a 0.6% comparable-sales increase. This marked Petco's second consecutive quarter of positive comps.
Adjusted EBITDA Exceeded Outlook
Adjusted EBITDA was $122 million, or 8.2% of net sales, including a $6.8 million net tariff refund. Normalized adjusted EBITDA excluding the refund was $115 million, above both last year and the company's outlook.
Full-Year Outlook Reaffirmed
Petco reaffirmed its full-year outlook for net sales of flat to up 1.5% versus last year and adjusted EBITDA of $415 million to $430 million. Third-quarter guidance calls for sales growth of 0.4% to 1% and adjusted EBITDA of $100 million to $103 million.
Improved Gross Profit and Margin
Second-quarter gross profit was $591 million, and gross margin expanded 37 basis points to 39.7%, including the $6.8 million net tariff refund. Excluding the refund, normalized gross margin was approximately flat year over year despite comparison with last year's peak quarterly gross margin.
Strong Expense Discipline
SG&A was $543 million, or 36.5% of net sales. Despite lapping an approximately $9 million actuarial true-up benefit from last year and marketing expense increasing by $2 million, total expenses increased only $1 million; excluding the prior-year benefit, expenses were down approximately $8 million.
Cash Generation and Debt Reduction
Free cash flow increased $51 million year to date. Cash ended the quarter at $293 million, up more than $100 million year over year, while total liquidity was $781 million, up nearly $100 million. Total debt was $1.48 billion, down $113 million year over year, and Petco prepaid an additional $75 million of debt on September 1, bringing total debt paydown over the last nine months to $170 million.
Inventory and Balance-Sheet Discipline
Ending inventory declined 1% year over year, following a 9.5% decline last year. Management said the company remains focused on reducing its leverage ratio to 2x.
Customer Base Began to Grow
Management reported that Petco's total customer base grew slightly in the second quarter, which Joel Anderson described as a start to having reached the bottom and beginning to grow.
Omnichannel and Autoship Opportunity
Multichannel customers who shop online, in stores and use services generate a 5x higher NSPAC than single-channel customers. Autoship now represents roughly half of digital sales, and digital Autoship customers typically spend 2x to 3x more than non-Autoship customers. Petco rolled out Autoship sign-up capabilities across its physical stores, creating an opportunity to increase recurring purchases and cross-channel engagement.
Veterinary Business Continued to Improve
Hospital sales productivity improved in the second quarter, total pet visits grew double digits, and doctor days expanded by double digits. Petco's wholly owned veterinary hospital model is scaled to approximately 300 locations, and the company remains on track to begin opening additional hospitals in 2027.
Double-Digit Vet Diet Growth
Veterinary diet sales for both dogs and cats grew double digits versus last year, supported by recommendations from Petco's in-store veterinarians and the integration of veterinary services with the center of the store.
Cat Category and Newness Momentum
Newness remained a standout growth category. New brands generated gains across cat consumables, supplements, bedding and furniture, while cat treats benefited from a significant number of new SKUs with high brand awareness. Petco's private-label Candy Shop cat treats were described as a huge success, and management said the cat business is growing above the overall market.
Companion Animal and Gardening Growth
Live reptiles were particularly strong in the second quarter, fueling gains in reptile food and supplies. The Gardening with Your Pets category also grew, driven by potted houseplants and pet-friendly garden seeds.
Positive Results from New Store Format Test
A new store format launched in a seven-store market test in May. Management reported a sizable lift in new and reactivated customers, higher transaction counts, larger basket sizes, strong comparable sales, improved margins and a Net Promoter Score increase of hundreds of basis points nearly overnight. Petco is expediting additional remodel tests and plans to open a couple of new stores with the format this year.
Fresh and Frozen Expansion
Petco expects to sustain momentum in fresh and frozen food. Hill's Pet Nutrition is launching Science Diet Single Protein Dog Food Rolls in the third quarter, with the rollout expected to be completed by year end. Petco is adding in-store chillers across the majority of its locations to support the offering.
Merchandising and Supplies Initiatives
Petco expects inventory to increasingly reflect an optimized, go-forward product mix in the second half. The company invested a portion of its tariff refund to accelerate its merchandising strategy and expects to exit the third quarter with increased newness versus the second quarter, including expanded owned-brand offerings. Supplies are expected to improve through stronger in-stock levels, efforts to address assortment gaps, new bedding and cleanup assortments, and expanded travel products such as carriers, strollers and backpacks.
Retailtainment and Community Engagement
Petco is using in-store activations to drive traffic and customer engagement, including Hill's National Clear the Shelters adoption drive, a pumpkin spice latte pup cup, Catco Month with product launches and Meow Market tasting weekends, and planned Halloween photo opportunities and costume events.
E-Commerce Recovery with Healthier Economics
Although Petco does not separately report e-commerce sales, management said the e-commerce business is performing well after last year's cleanup of unprofitable sales, with a comeback this year occurring with strong margins.
Board Strengthened with Retail Financial Expertise
Jeffrey Naylor, formerly Chief Financial Officer of TJX Companies, was appointed to Petco's Board of Directors and named Chair of the Audit Committee.
MX:WOOF Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed