Petco Health & Wellness

WOOF Q1 2026 Earnings

Reported Jun 5, 2025 at 4:10 PM ET · SEC Source

Q1 26 EPS

$-0.04

MISS 179.72%

Est. $-0.01

Q1 26 Revenue

$1.49B

MISS 0.62%

Est. $1.50B

vs S&P Since Q1 26

-47.2%

TRAILING MARKET

WOOF -24.8% vs S&P +22.4%

Market Reaction

Did WOOF Beat Earnings? Q1 2026 Results

Petco Health and Wellness posted a mixed but broadly encouraging first quarter for fiscal 2025, with results coming in ahead of the company's own guidance even as Wall Street had hoped for more, reporting an EPS of -$0.04 and net sales of $1.49 billi… Read more Petco Health and Wellness posted a mixed but broadly encouraging first quarter for fiscal 2025, with results coming in ahead of the company's own guidance even as Wall Street had hoped for more, reporting an EPS of -$0.04 and net sales of $1.49 billion, a 2.3% year-over-year decline that reflected ongoing softness in product revenue. The more compelling story was margin discipline: gross profit margin expanded roughly 30 basis points to 38.2%, SG&A expenses fell 7% to $553.61 million, and operating income swung to a gain of $16.36 million from a $16.78 million loss a year earlier, with Adjusted EBITDA climbing to $89.45 million from $75.64 million. Services revenue, which includes veterinary, grooming, and training, rose 1% to $251.51 million, underscoring how Petco's shift toward recurring health-and-wellness offerings is cushioning the top-line pressure that's affecting broader pet industry players as well. Looking ahead, the company reaffirmed full-year guidance for Adjusted EBITDA of $375 million to $390 million, with Q2 Adjusted EBITDA expected between $92 million and $94 million, assuming current tariff levels hold through year-end.

Key Takeaways

  • Gross profit margin expansion of approximately 30 basis points to 38.2%
  • SG&A expenses reduced 7% year over year
  • Operating income improved $33.1 million year over year
  • Adjusted EBITDA margin expanded to 6.0% from 4.9%
  • Services and other revenue grew 1% year over year
  • Execution of operational reset strategy to strengthen retail fundamentals
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WOOF YoY Financials

Q1 2026 vs Q1 2025, source: SEC Filings

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WOOF Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 26 Q1 27

“We are pleased to deliver first quarter earnings results ahead of our guidance and to reaffirm our outlook for fiscal 2025 which now incorporates the impact of tariffs. This performance is a testament to the execution of our nearly 30,000 team members and the resilience of the category in which we operate.”

— Joel Anderson, Q1 2026 Earnings Press Release