Petco Health WOOF 2026Q1 Earnings Preview Downside Risk Amid Continued Revenue Declines

Forward-Looking Analysis
Petco Health and Wellness is set to release its Q1 2026 earnings report on June 5, 2025. Analysts expect continued revenue declines, as the company has guided for lower sales in fiscal first quarter 2025 following a similar trend in the previous quarter. Despite a forecasted annual growth in earnings and revenue by 108.5% and 0.6% respectively, and an expected EPS growth of 71.9% per annum, Petco’s financial health appears challenged. The mixed performance in Q3 2025, with growth in consumables and services but declines in supplies and companion animal sales, further underscores the uncertain outlook. Petco’s strategic move to close 20-30 net locations in 2025 aims to optimize resources and expand key areas, but it's unclear if these measures will sufficiently counteract revenue pressures. Analysts and investors remain cautious, monitoring Petco’s ability to navigate these financial challenges effectively.

Historical Performance Review
In Q4 2025, Petco Health reported a revenue of $1.55 billion, aligning with forecasts. However, the net income stood at a loss of $13.84 million, leading to an EPS of -$0.05. Despite the earnings miss, the company experienced a 10.25% stock surge after hours. The gross profit was reported at $589.26 million, reflecting ongoing operational challenges amidst declining sales. These figures reveal the company's struggle to maintain profitability while managing revenue expectations.

Additional News
Petco Health and Wellness has been actively pursuing strategic changes to strengthen its market position. The company plans to close 20-30 net locations in 2025, focusing on expanding its health and wellness ecosystem through pet care centers and digital platforms. With over 1,500 locations across the U.S., Mexico, and Puerto Rico, Petco continues to innovate in pet care, offering merchandise, grooming, training, and a growing network of veterinary services. Petco’s commitment to animal welfare is evident through partnerships with local groups and adoption events, which have successfully found homes for nearly 7 million animals.

Summary & Outlook
Petco Health faces a challenging financial landscape with ongoing revenue declines impacting overall health. Despite forecasted growth in earnings and EPS, the company has yet to demonstrate a clear path to reversing sales trends. Strategic initiatives, including location closures and service expansions, aim to mitigate risks, but investors remain cautious about long-term prospects. With mixed performance in recent quarters, Petco's outlook appears bearish, requiring decisive actions to stabilize and enhance its financial standing. The effectiveness of these strategies will be crucial in determining future success amidst industry pressures.