Petco Health and Wellness (NASDAQ:WOOF) Shares Gap Up on Earnings Beat

Posted by Stanley Muller on Sep 3rd, 2026

Petco Health and Wellness Company, Inc. (NASDAQ:WOOF – Get Free Report) gapped up prior to trading on Thursday following a stronger than expected earnings report. The stock had previously closed at $2.63, but opened at $3.12. Petco Health and Wellness shares last traded at $2.7240, with a volume of 2,800,590 shares.

The company reported $0.13 earnings per share for the quarter, topping the consensus estimate of $0.07 by $0.06. The firm had revenue of $1.49 billion for the quarter, compared to analyst estimates of $1.49 billion. Petco Health and Wellness had a return on equity of 1.36% and a net margin of 0.09%.During the same period last year, the company earned $0.05 earnings per share.

Trending Headlines about Petco Health and Wellness

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

Positive Sentiment: Q2 earnings beat expectations. Petco reported adjusted EPS of $0.13, up from $0.05 a year earlier and $0.06 above consensus estimates. Revenue was $1.49 billion, in line with expectations. Petco Reports Second Quarter 2026 Results
Positive Sentiment: Profitability and cash flow improved. Net income reached $38.7 million, while operating cash flow nearly doubled, helped partly by a one-time tariff refund. The company also delivered its second consecutive quarter of positive comparable-sales growth. The Market Is Finally Starting To Come Around To Petco Health and Wellness Company
Positive Sentiment: Debt reduction supports the investment case. Petco announced a $75 million debt prepayment as it works toward its goal of reducing leverage to two times. Petco Reports Second Quarter 2026 Results
Positive Sentiment: Strategic initiatives are showing traction. Petco said its “Reach for the Sky” strategy is supporting growth in consumables and services, while omnichannel improvements and expanded services are beginning to contribute. The Market Is Finally Starting To Come Around To Petco Health and Wellness Company
Neutral Sentiment: Full-year outlook was reaffirmed. Petco continues to expect fiscal 2026 sales to be flat to up 1.5% and forecasts adjusted EBITDA of $415 million to $430 million. Revenue guidance of approximately $6.0 billion to $6.1 billion is broadly consistent with analyst expectations. Petco Forecasts Fiscal 2026 Adjusted EBITDA
Neutral Sentiment: Analyst view remains cautious. Robert W. Baird raised its price target from $3.00 to $3.25 but maintained a neutral rating, suggesting improved expectations without a strongly bullish stance.

Wall Street Analyst Weigh In

A number of analysts recently weighed in on WOOF shares. Citigroup reduced their target price on shares of Petco Health and Wellness from $4.00 to $3.25 and set a “neutral” rating for the company in a report on Thursday, June 4th. Zacks Research downgraded shares of Petco Health and Wellness from a “strong-buy” rating to a “hold” rating in a research report on Monday, May 18th. Weiss Ratings reissued a “sell (d)” rating on shares of Petco Health and Wellness in a research report on Thursday, June 11th. Wall Street Zen raised shares of Petco Health and Wellness from a “hold” rating to a “buy” rating in a research report on Saturday, July 4th. Finally, Robert W. Baird raised their price target on shares of Petco Health and Wellness from $3.00 to $3.25 and gave the stock a “neutral” rating in a report on Thursday. One analyst has rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, Petco Health and Wellness presently has a consensus rating of “Hold” and a consensus target price of $3.72.

Get Our Latest Analysis on WOOF

Insiders Place Their Bets

In other news, insider Holly May sold 200,000 shares of the stock in a transaction on Thursday, July 9th. The shares were sold at an average price of $2.54, for a total value of $508,000.00. Following the completion of the transaction, the insider owned 1,327,867 shares in the company, valued at approximately $3,372,782.18. This represents a 13.09% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Insiders have sold a total of 450,000 shares of company stock worth $1,145,500 in the last 90 days. 6.50% of the stock is owned by insiders.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the business. AQR Capital Management LLC lifted its stake in shares of 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 valued at $3,887,000 after acquiring 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 1st quarter. Goldman Sachs Group Inc. now owns 3,637,695 shares of the company’s stock valued at $11,095,000 after acquiring an additional 1,367,299 shares during the period. Creative Planning boosted its stake in Petco Health and Wellness by 14.8% during the 2nd quarter. Creative Planning now owns 36,779 shares of the company’s stock worth $104,000 after acquiring an additional 4,734 shares during the last quarter. Cetera Investment Advisers boosted its stake in 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 acquiring an additional 4,258 shares during the last quarter. Finally, Legal & General Group Plc grew its holdings in shares of Petco Health and Wellness by 23.9% in the 2nd quarter. Legal & General Group Plc now owns 126,352 shares of the company’s stock valued at $358,000 after buying an additional 24,369 shares during the period.

Petco Health and Wellness Stock Performance

The company has a debt-to-equity ratio of 1.27, a quick ratio of 0.29 and a current ratio of 0.85. The stock’s 50-day moving average is $2.71 and its 200 day moving average is $2.74. The firm has a market cap of $894.08 million, a P/E ratio of 138.32, a PEG ratio of 2.99 and a beta of 1.53.

Petco Health and Wellness Company Profile

(Get Free Report)

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.