Petco Health and Wellness (NASDAQ:WOOF) Announces Quarterly Earnings Results

Petco Health and Wellness (NASDAQ:WOOF) released its quarterly earnings results on Wednesday. The company reported ($0.01) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.02 by ($0.03), FiscalAI reports. The firm had revenue of $1.52 billion for the quarter, compared to analysts’ expectations of $1.51 billion. Petco Health and Wellness had a return on equity of 0.89% and a net margin of 0.15%.The company’s quarterly revenue was down 2.4% compared to the same quarter last year. During the same quarter in the prior year, the business earned ($0.05) EPS.

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 Price Performance

WOOF opened at $3.23 on Friday. Petco Health and Wellness has a 1 year low of $2.24 and a 1 year high of $4.51. The company has a debt-to-equity ratio of 1.37, a current ratio of 0.91 and a quick ratio of 0.35. The firm has a market cap of $1.03 billion, a PE ratio of 107.67 and a beta of 1.75. The stock has a 50-day moving average price of $2.70 and a 200-day moving average price of $3.10.

Analyst Upgrades and Downgrades

A number of equities analysts recently weighed in on WOOF shares. Evercore lowered their price objective on shares of Petco Health and Wellness from $4.00 to $3.00 and set an “in-line” rating for the company in a research report on Tuesday, February 3rd. Jefferies Financial Group upgraded shares of Petco Health and Wellness from a “hold” rating to a “buy” rating and boosted their target price for the company from $4.05 to $5.00 in a research report on Thursday. Finally, Weiss Ratings reiterated a “sell (d-)” rating on shares of Petco Health and Wellness in a research report on Monday, December 29th. Four analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus price target of $3.94.

Institutional Trading of Petco Health and Wellness

Hedge funds and other institutional investors have recently made changes to their positions in the business. Caitong International Asset Management Co. Ltd grew its position in shares of Petco Health and Wellness by 425.1% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 10,523 shares of the company’s stock worth $30,000 after buying an additional 8,519 shares during the period. Abel Hall LLC bought a new position in shares of Petco Health and Wellness during the 4th quarter worth about $31,000. Cibc World Market Inc. acquired a new position in shares of Petco Health and Wellness in the fourth quarter valued at about $32,000. Quantbot Technologies LP purchased a new stake in Petco Health and Wellness in the 3rd quarter worth about $34,000. Finally, National Bank of Canada FI bought a new stake in Petco Health and Wellness during the 3rd quarter worth approximately $35,000.

More Petco Health and Wellness News

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

• Positive Sentiment: Management raised FY‑2026 guidance and provided EBITDA targets ($415–$430M), and guided to flat-to-modest sales growth (up to ~1.5%), which surprised investors and helped lift sentiment. Seeking Alpha: Guidance Surprise
• Positive Sentiment: Jefferies upgraded WOOF from Hold to Buy and raised its $5 price target, arguing liquidity and profitability concerns are largely behind the company and that the planned initiatives position Petco for growth. MSN: Jefferies Upgrade
• Positive Sentiment: Fourth‑quarter results showed improved margins, higher EBITDA and reduced leverage versus prior periods — evidence the turnaround is generating cash/profitability improvements. PR Newswire: Q4 Results
• Positive Sentiment: Management is shifting from cost-cutting to growth execution — expanding services (grooming, training), own brands and fresh food — a strategic move investors view as higher‑margin and scalable. PYMNTS: Growth Strategy
• Positive Sentiment: Petco is closing underperforming stores to prioritize free‑cash‑flow generation, a discipline that supports deleveraging and funds reinvestment into services and higher-return categories. Motley Fool: Store Closures / FCF Focus
• Neutral Sentiment: Revenue slightly beat consensus ($1.52B vs. $1.51B) but was down ~2.4% year‑over‑year — a mixed signal: the company is stabilizing sales but has not yet returned to consistent growth. Benzinga: Revenue Beat
• Negative Sentiment: Petco missed EPS expectations for the quarter (reported a small loss vs. a modest expected profit), which is a reminder that profitability improvements are early-stage and earnings remain volatile. Earnings Call Transcript

About Petco Health and Wellness

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.