Petco Health & Wellness (WOOF) Q1 2026 Earnings
Includes an $11.840 million loss on extinguishment and modification of debt
How Did WOOF Stock React to Q1 2026 Earnings?
S&P 500 over the same 30 days: −1.54%.
Did WOOF Beat Earnings? Q1 2026 Results
No. Petco Health & Wellness reported Q1 2026 earnings of $-0.05 a share on Jun 3, 2026, missing the $0.03 consensus estimate by 287.3%. Revenue was $1.5B against a $1.5B estimate.
Petco Health & Wellness posted a modest operational recovery in its fiscal first quarter of 2026, delivering revenue of $1.50 billion, up 0.2% year over year and nudging just ahead of the $1.49 billion consensus estimate, while comparable sales turned positive at 0.7%, a sign that the company's "Reach for the Sky" turnaround strategy is beginning to gain traction. On the bottom line, however, Petco swung to a GAAP diluted loss of $0.05 per share where analysts had expected roughly breakeven, as an $11.84 million loss on extinguishment and modification of debt tied to the company's refinancing activity weighed on results; the prior-year quarter had produced a narrower loss of $0.04 per share. Beneath the headline loss, the operating picture improved meaningfully, with operating income rising 50.5% to $24.63 million and Adjusted EBITDA climbing to $97.33 million from $89.45 million a year ago, driven by services revenue growth and tighter SG&A spending. Gross margin expanded 21 basis points to 38.4%. Petco reaffirmed its full-year 2026 guidance of flat to 1.5% net sales growth and Adjusted EBITDA of $415 million to $430 million, with Q2 net sales growth expected around 0.3%.
- Return to positive comparable sales growth of 0.7%
- Improvement in consumables business
- Services business continues to outperform as a key growth engine
- Gross margin expansion of 21 basis points to 38.4%
- SG&A expense discipline with expenses declining year over year
- Inventory fell 1.9% year-over-year while sales grew 0.2%
“Our strong first-quarter results, highlighted by positive comparable sales and profitability that exceeded our outlook, provide clear, early validation that our Phase 3 'Reach for the Sky' strategy is working. We were particularly pleased to see the improvement in our consumables business, while our differentiated services business continues to outperform and is a key engine of our growth. This solid start to the year demonstrates the power of our distinct, wholly owned omnichannel ecosystem. As we look ahead, we are pleased with the momentum our initiatives are generating, positioning us to continue to deliver positive comps. We remain highly confident in our ability to drive consistent, long-term growth.”
Petco Health & Wellness CEO, on the earnings call
What Was Petco Health & Wellness's Outlook in Q1 2026?
Petco reaffirmed its full year 2026 outlook: net sales flat to up 1.5% year over year, Adjusted EBITDA of $415 million to $430 million, net interest expense of approximately $125 million, capital expenditures of approximately $140 million, depreciation & amortization of approximately $200 million, and approximately 15-20 net store closures. For Q2 2026, the company guided for net sales up about 0.3% year over year (in line with consensus) and Adjusted EBITDA of $110 million to $112 million. The outlook assumes current tariff levels on imports from China and other countries remain in place, the benefit of a partial IEEPA tariff refund received in May 2026 with no additional refunds assumed, and elevated fuel prices for the remainder of the year. The prior-year Q2 included an approximately $9 million SG&A benefit from a favorable actuarial true-up not expected to recur.
WOOF YoY Financials
| Metric | Q1 2026 | Q1 2025 | Year over year |
|---|---|---|---|
| Revenue | $1.5B | $1.5B | +0.2% |
| Gross Profit | $574.4M | $570.0M | +0.8% |
| Operating Income | $24.6M | $16.4M | +50.5% |
| Net Income | −$15.1M | −$21.6M | −29.9% |
WOOF Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.