Companies /Consumer Cyclical

Petco Health and Wellness Co Inc - Class A

NASDAQ: WOOF Specialty Retail
$2.63
▲ $0.05 (+1.94%) today
Markets closed · 7:12am ET

Q3 2026 Earnings

Reported Nov 25, 2025, 4:10pm ET · SEC source
$0.03
Beat +21.46%
EPS · est. $0.02
$1.5B
Miss −0.34%
Revenue · est. $1.5B
−5.3%
Trailing market
WOOF vs S&P since report
1 quarter
Consecutive EPS beats

Market Reaction

% change · around the report
−8%0+8%+16%Nov 25Nov 26report 4:10pm ETearnings+0.8%+6.6%
−8%0+8%+16%Nov 25Nov 26earnings+0.8%+6.6%
WOOF +6.6%S&P 500 +0.8%
−8%0+8%+16%Nov 25Nov 26report 4:10pm ETearnings+1.0%+6.6%
−8%0+8%+16%Nov 25Nov 26earnings+1.0%+6.6%
WOOF +6.6%NASDAQ +1.0%
−8%0+8%Nov 24Dec 3report 4:10pm ETearnings+1.3%−2.5%
−8%0+8%Nov 24Dec 3earnings+1.3%−2.5%
WOOF −2.5%S&P 500 +1.3%
−8%0+8%Nov 24Dec 3report 4:10pm ETearnings+2.4%−2.5%
−8%0+8%Nov 24Dec 3earnings+2.4%−2.5%
WOOF −2.5%NASDAQ +2.4%
+6.45%
Day of report
+14.48%
Next session
+5.39%
One week
−3.37%
30 days

S&P 500 over the same 30 days: +1.90%.

Did WOOF Beat Earnings? Q3 2026 Results

Petco Health & Wellness delivered a profitability-driven quarter in Q3 fiscal 2026, posting earnings per share of $0.03 against a consensus estimate of $0.02, a beat of 21.46%, even as revenue came in fractionally light. Net sales fell 3.1% year over year to $1.46 billion, missing the $1.47 billion consensus by 0.34%, with comparable sales down 2.2% reflecting softer transaction volume. The real story was margin recovery: gross profit margin expanded roughly 75 basis points to 38.9%, while SG&A costs dropped to $539.82 million from $571.78 million, helping swing GAAP net income to a positive $9.33 million from a loss of $16.67 million a year earlier. Free cash flow turned sharply positive at $60.65 million versus negative $10.29 million in the prior-year period. Management raised its full-year adjusted EBITDA guidance midpoint by $6 million to a range of $395 million to $397 million, while tightening its net sales outlook to a decline of 2.5% to 2.8%, framing 2025 as the foundation year for a return to growth in fiscal 2026.

Key Takeaways
  • Gross profit margin expanded approximately 75 basis points to 38.9%
  • SG&A expenses reduced to $539.8 million from $571.8 million year over year
  • Adjusted EBITDA margin expanded to 6.7% from 5.4% year over year
  • Operating income improved $25.2 million year over year to $29.2 million
  • Free cash flow improved to $60.6 million from negative $10.3 million year over year

“Once again, we delivered on Petco's profitability goals as we continue to execute on our multi-phased transformation.”

Petco Health & Wellness CEO, on the earnings call

Forward Guidance & Outlook

Petco upwardly revised its full-year fiscal 2025 earnings guidance, raising the adjusted EBITDA midpoint by $6 million to a range of $395 million to $397 million. Full-year net sales are expected to decline 2.5% to 2.8%. Net interest expense is expected at approximately $125 million, capital expenditures of $125-$130 million, depreciation and amortization of approximately $200 million, and approximately 20 net store closures. For Q4 2025, the company expects net sales to decline low single digits year over year with adjusted EBITDA of $93 million to $95 million. The outlook assumes tariffs on U.S. imports remain at November 25, 2025 levels. Management indicated the strengthened economic base in 2025 sets the foundation for a return to growth during fiscal 2026.

WOOF YoY Financials

Q3 2026 vs Q3 2025 · SEC filings Q3 2025 Q3 2026
$0$500.0M$1.0B$1.5B$1.5B$1.5BRevenue$525.6M$569.0MGross Profit$9.8M$29.2MOperating Income$3.6M$9.3MNet Income
$0$500.0M$1.0B$1.5BRevenueGross ProfitOperating IncomeNet Income

WOOF Revenue by Segment

Products$1.2B
Services and other
Services and Other$254.8M

Figures from SEC filings and company reports. Not investment advice.