Petco Health & Wellness (WOOF) Q2 2026 Earnings
Includes a $15.7 million income tax benefit (vs. $0.7 million expense in prior year) and a net $6.8 million benefit from IEEPA tariff refunds
How Did WOOF Stock React to Q2 2026 Earnings?
S&P 500 over the same 30 days: +0.77%.
Did WOOF Beat Earnings? Q2 2026 Results
Yes. Petco Health & Wellness reported Q2 2026 earnings of $0.13 a share on Sep 2, 2026, beating the $0.07 consensus estimate by 80.3%. Revenue was $1.5B against a $1.5B estimate.
Petco Health & Wellness delivered a sharp earnings beat in its fiscal second quarter of 2026, with GAAP diluted EPS of $0.13 topping the $0.07 consensus estimate by 80.31%, even as revenue of $1.49 billion came in essentially flat year-over-year and edged just 0.22% below analyst expectations. The headline profit figure reflected two meaningful tailwinds: a $15.71 million income tax benefit, compared to a $746,000 expense in the prior-year period, and a net $6.80 million benefit from IEEPA tariff refunds received during the quarter. Beneath those items, the underlying business showed genuine momentum, with comparable sales rising 0.6% for a second consecutive positive quarter, Adjusted EBITDA expanding to $122.22 million from $113.86 million, and free cash flow surging to $129.92 million from $53.79 million a year ago. Management noted that sales were tracking ahead of plan before a stronger-than-expected loyalty redemption wave followed the membership program relaunch. Petco reaffirmed its full-year outlook for flat to 1.5% net sales growth and Adjusted EBITDA of $415 million to $430 million, while guiding Q3 net sales growth of 0.4% to 1.0%.
- Second consecutive quarter of positive comparable sales growth (0.6%)
- Growth in consumables highlighting 'Reach for the Sky' strategy traction
- Net $6.8 million IEEPA tariff refund benefit boosting profitability
- Gross margin rate improvement of 37 basis points to 39.7%
- Adjusted EBITDA margin expansion to 8.2% from 7.6%
- Income tax benefit of $15.7 million vs. $0.7 million expense in prior year
“We delivered stronger than expected profitability in the quarter while achieving our second consecutive quarter of positive comps. We were pleased to see growth in consumables, which highlights that our 'Reach for the Sky' strategy is gaining traction. Looking ahead to the second half, we are positioned to benefit from several growth drivers and are pleased to reaffirm our full-year sales and profitability outlook. We remain confident in our ability to generate sustainable, long-term growth.”
Petco Health & Wellness CEO, on the earnings call
What Is Petco Health & Wellness's Outlook?
Petco reaffirmed its full-year fiscal 2026 outlook: net sales flat to up 1.5% year-over-year, Adjusted EBITDA of $415 million to $430 million, net interest expense of ~$122 million, capital expenditures of ~$140 million, depreciation & amortization of ~$200 million, and ~15-20 net store closures. For Q3 2026, the company guided net sales growth of 0.4% to 1.0% and Adjusted EBITDA of $100 million to $103 million. The outlook includes $6.8 million in net IEEPA tariff refunds already received but assumes no additional refunds for the balance of the year. It also assumes current tariff levels, economic conditions, currency rates, and the tax and regulatory landscape remain generally consistent. Management noted flexibility to invest behind growth initiatives in the second half while absorbing ongoing supply chain headwinds.
WOOF YoY Financials
| Metric | Q2 2026 | Q2 2025 | Year over year |
|---|---|---|---|
| Revenue | $1.5B | $1.5B | +0.0% |
| Gross Profit | $591.1M | $585.3M | +1.0% |
| Operating Income | $47.8M | $43.0M | +11.1% |
| Net Income | $38.7M | $14.0M | +176.7% |
WOOF Revenue by Segment
When Does Petco Health & Wellness Report Next?
Figures from SEC filings and company reports. Not investment advice.