Petco Shares Rise After Q2 Earnings Exceed Estimates

Petco Health and Wellness Company Inc (NASDAQ:WOOF) shares rose 11.8% in premarket trading after the pet specialty retailer reported fiscal second-quarter 2026 earnings above analyst expectations and adjusted EBITDA above its previous guidance range.

Petco reported earnings per share of $0.113, compared with the analyst consensus estimate of $0.071.

Revenue was $1.49 billion, in line with estimates, while comparable sales increased 0.6%. The quarter marked Petco’s second consecutive period of positive comparable-sales growth.

Adjusted EBITDA Reaches $122.2 Million

Adjusted EBITDA was $122.2 million, above the company’s previous guidance range of $110 million to $112 million.

Gross margin increased 37 basis points to 39.7%, while operating income rose to $47.8 million from $43.0 million in the prior-year period.

Petco reaffirmed its full-year 2026 sales and adjusted EBITDA outlook.

CEO Joel Anderson said the company delivered “stronger than expected profitability in the quarter while achieving our second consecutive quarter of positive comps,” according to the source material.

Anderson also expressed confidence that the company’s “Reach for the Sky” strategic plan was gaining traction in consumables and services.

Petco Makes Additional $75 Million Debt Prepayment

Petco voluntarily prepaid an additional $75 million of debt after the end of the quarter.

The payment brought total debt prepayments over the previous nine months to $170 million.

Net debt declined 15% year over year to $1.19 billion.

Petco Shares Gain in Premarket Trading

The broader US equity market showed limited movement, with the S&P 500 up 0.03%, the Dow Jones gaining 0.1% and the Nasdaq slightly lower.

According to the source material, an analyst reaffirmed a “strong buy” stance on Petco shares, citing valuation, debt reduction and the company’s adjusted EBITDA trajectory.

Petco shares extended their gains in premarket trading following the release of the quarterly results after the previous session’s close.

Petco Health and Wellness Company stock price