Petco Health and Wellness (NASDAQ:WOOF) Announces Earnings Results, Misses Expectations By $0.03 EPS

Petco Health and Wellness (NASDAQ:WOOF) issued its earnings results on Wednesday. The company reported ($0.01) EPS for the quarter, missing analysts’ consensus estimates of $0.02 by ($0.03), FiscalAI reports. Petco Health and Wellness had a negative net margin of 0.04% and a positive return on equity of 0.46%. The firm had revenue of $1.52 billion during the quarter, compared to analysts’ expectations of $1.51 billion. During the same quarter last year, the firm earned ($0.05) EPS. The business’s revenue for the quarter was down 2.4% compared to the same quarter last year.

Here are the key takeaways from Petco Health and Wellness’ conference call:

• Achieved a 21% increase in Adjusted EBITDA for FY‑2025, free cash flow up 276% to $187M, and reduced net debt/EBITDA from 4.2x to 3.0x after an opportunistic refinancing that extends maturities to 2031.
• Q4 net sales declined 2.4% (comps -1.6%) as management intentionally shed unprofitable sales and completed net store closures (25 in 2024, +16 in 2025), weighing on near‑term top‑line growth.
• 2026 guidance targets conservative top‑line improvement (net sales flat to +1.5%) with Adjusted EBITDA of $415–$430M and Q1 EBITDA of $92–94M, while planning 15–20 net store closures and assuming fuel normalizes by quarter end.
• “Reach for the Sky” growth plan centers on four pillars—product newness (about 25 new brands/flavors, >1,000 additional freezers for fresh/frozen), scaling wholly owned vet/grooming/training services, enhanced in‑store experiences and cross‑selling, and integrated omni‑channel (loyalty relaunch, in‑store pickup for repeat delivery)—aimed at regrowing frequency, basket and share of wallet.

Petco Health and Wellness Stock Performance

WOOF opened at $2.40 on Thursday. The company has a debt-to-equity ratio of 1.37, a quick ratio of 0.35 and a current ratio of 0.91. The company has a market cap of $765.70 million, a PE ratio of -239.76 and a beta of 1.75. The stock has a 50-day moving average of $2.70 and a 200-day moving average of $3.10. Petco Health and Wellness has a 52-week low of $2.24 and a 52-week high of $4.51.

Wall Street Analyst Weigh In

Several equities research analysts have recently issued reports on WOOF shares. Evercore reduced their price target on Petco Health and Wellness from $4.00 to $3.00 and set an “in-line” rating for the company in a report on Tuesday, February 3rd. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Petco Health and Wellness in a research report on Monday, December 29th. Three analysts have rated the stock with a Buy rating, nine have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of “Hold” and an average target price of $3.86.

Institutional Investors Weigh In On Petco Health and Wellness

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. AQR Capital Management LLC boosted its position in Petco Health and Wellness by 9.1% during the first quarter. AQR Capital Management LLC now owns 1,274,588 shares of the company’s stock worth $3,887,000 after purchasing an additional 106,295 shares during the period. Goldman Sachs Group Inc. raised its position in shares of Petco Health and Wellness by 60.2% in the first quarter. Goldman Sachs Group Inc. now owns 3,637,695 shares of the company’s stock valued at $11,095,000 after purchasing an additional 1,367,299 shares during the period. Creative Planning lifted its stake in shares of Petco Health and Wellness by 14.8% in the second quarter. Creative Planning now owns 36,779 shares of the company’s stock worth $104,000 after buying an additional 4,734 shares during the last quarter. Cetera Investment Advisers boosted its holdings in shares of Petco Health and Wellness by 17.6% during the 2nd quarter. Cetera Investment Advisers now owns 28,419 shares of the company’s stock worth $80,000 after buying an additional 4,258 shares during the period. Finally, Legal & General Group Plc boosted its holdings in shares of Petco Health and Wellness by 23.9% during the 2nd quarter. Legal & General Group Plc now owns 126,352 shares of the company’s stock worth $358,000 after buying an additional 24,369 shares during the period.

Trending Headlines about Petco Health and Wellness

Here are the key news stories impacting Petco Health and Wellness this week:

• Positive Sentiment: Management laid out a “Reach for the Sky” growth plan targeting up to ~1.5% sales growth in 2026 and said it will expand services, fresh food and private-label assortments — a clear pivot from cost-only moves to revenue drivers that could support margin recovery and higher lifetime customer value. Read More.
• Positive Sentiment: Company issued FY-2026 revenue guidance of roughly $6.0B–$6.1B and expects 2026 sales to be flat to up ~1.5%, signaling management sees a rebound from last year’s decline; the guidance helped lift shares in after-hours trading. Read More.
• Positive Sentiment: Petco said it delivered profitability ahead of outlook in FY-2025 and reduced leverage — improvements that lower balance-sheet risk and give management room to invest in growth initiatives. Read More.
• Neutral Sentiment: Q4 results were mixed: revenue of $1.52B slightly beat consensus ($1.51B) but revenue was down ~2.4% YoY and reported EPS of $(0.01) missed estimates by ~$0.03 — the topline beat offsets, but does not eliminate, near-term profitability concerns. Read More.
• Neutral Sentiment: Management provided Q1 and full-year revenue ranges but did not give detailed EPS guidance in its public update (the emphasis was on revenue, growth levers and margin improvement cadence), leaving some earnings visibility limited. Read More.
• Negative Sentiment: Underlying fundamentals still show risks: recent quarters include negative net margin and an elevated debt-to-equity profile, and analysts still model negative EPS for the year — meaning execution on the new growth plan is required to translate sales gains into sustained profitability. (Background financials and analyst outlooks referenced in earnings materials.) Read More.

Petco Health and Wellness Company Profile

Petco Health and Wellness Company, Inc (NASDAQ: WOOF) is a leading U.S. pet specialty retailer focused on delivering products, services and solutions that improve the health and well-being of pets. The company operates a network of retail locations that provide high-quality pet food, supplies and accessories, along with a growing digital platform that supports online ordering, subscription delivery and telehealth consultations for pets.

In addition to its retail offerings, Petco has built a full suite of in-store and virtual services, including grooming, training, dog daycare and veterinary care.