Petco Health WOOF 2026Q2 Earnings Preview Downside Risk Amid Revenue Pressures

Forward-Looking Analysis
Analysts have raised EPS expectations by 16.4% year-over-year, projecting an EPS of -$0.014 per share for 2026Q2. Revenue growth is expected to remain under pressure, with Petco guiding for another year of declines. Recent quarterly results, including a Q1 2025 earnings miss and mixed Q3 2025 performance, highlight ongoing challenges in the retail and service segments. UBS maintains a price target of $3.25 for Petco, but recent trends suggest limited upside. The consensus forecast reflects caution, with gross margin and operating leverage remaining key areas of focus ahead of the earnings release on August 28, 2025.

Historical Performance Review
Petco Health reported Q1 2026 results with revenue of $1.49 billion and a net loss of $11.66 million, or $0.04 per share. Gross profit stood at $569.97 million, indicating pressure on margins amid declining sales. The performance underscores continued struggles in reversing a downward revenue trend, despite efforts to boost consumables and services growth.

Additional News
Petco will host an earnings call on August 28, 2025, following the release of Q2 2025 results. Recent Q3 2025 and Q1 2025 reports revealed mixed performance, with some improvement in consumables and services but ongoing challenges in core retail. No new product launches, M&A activity, or major CEO announcements were reported in the provided summaries.

Summary & Outlook
Petco Health remains under financial pressure, with declining revenue and negative net income persisting into Q1 2026. The EPS outlook is modest, with analysts projecting a small loss. Gross profit remains stable, but growth is constrained by weak demand and margin pressures. While Petco continues to focus on high-margin services, the company’s ability to reverse declining trends remains uncertain. The bearish outlook persists unless Petco can demonstrate stronger execution and customer retention.