Petco Health 2026 Q3 Earnings Strong Turnaround as Net Income Surges 156%

Generated by AI AgentDaily EarningsReviewed byAInvest News Editorial Team
Wednesday, Nov 26, 2025 7:19 am ET1min read
Aime RobotAime Summary

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Petco Health
(WOOF) reported Q3 2026 earnings with a $0.03 EPS beat and $9.33M net income, reversing a $16.67M loss.

- Revenue fell 3.1% to $1.46B, driven by weaker consumables sales, but services showed resilience and EBITDA guidance was raised to $395M–$397M.

- CEO Joel Anderson highlighted $99M adjusted EBITDA and strategic priorities including store revitalization, omni-channel integration, and a partnership with Uber Eats for pet product delivery.

- The stock surged 4.95% post-earnings, though it remains down 18.85% month-to-date, as leadership reshuffles and equity awards for new executives signaled long-term growth focus.

Petco Health (WOOF) reported fiscal 2026 Q3 earnings on Nov 25, 2025, delivering a $0.03 EPS beat versus a $0.02 consensus estimate and raising full-year adjusted EBITDA guidance to $395M–$397M. Despite a 3.1% revenue decline to $1.46 billion, the company returned to profitability with a $9.33M net income swing from a $16.67M loss.

Revenue

Product sales accounted for $1.21 billion, while services and other revenue contributed $254.81 million, totaling $1.46 billion in net sales. The 3.1% annual decline reflected softer demand in consumables and supplies, though services showed resilience.

Earnings/Net Income

Petco returned to profitability with a $0.03 EPS, reversing a $0.06 loss in 2025 Q3. Net income surged 156% to $9.33 million, reflecting disciplined cost actions and margin expansion. The turnaround underscores the company’s progress in strengthening its economic model.

Post-Earnings Price Action Review

The stock surged 4.95% in the latest trading day, adding 3.48% over the week, but fell 18.85% month-to-date.

CEO Commentary

CEO Joel Anderson highlighted Q3’s profitability, with $99 million in adjusted EBITDA and $60 million in free cash flow. Strategic priorities include product differentiation, store experience enhancements, integrated services, and omni-channel integration. Anderson emphasized that initiatives will “fuel growth in 2026.”

Guidance

CFO Sabrina Simmons raised 2025 adjusted EBITDA guidance to $395M–$397M, with net sales expected to decline 2.5%–2.8%. Q4 guidance includes low single-digit sales declines and $93M–$95M in adjusted EBITDA.

Additional News

Petco expanded its digital footprint via a partnership with Uber Eats for nationwide pet product delivery, offering discounts and enhanced accessibility. CEO Joel Anderson, hired in July 2024, reshaped leadership across finance, tech, and merchandising, prioritizing store revitalization and closures. Additionally, the company granted equity awards to newly hired Chief Customer and Product Officer Michael Romanko, including restricted stock units and performance-based incentives tied to shareholder returns.

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