Petco Health and Wellness Company, Inc. Q2 2026 Earnings Recap

Shares fell 2.3% as investors grappled with softer-than-expected sales driven by elevated loyalty rewards redemptions, which suppressed net sales and slowed momentum in key categories despite ongoing investments and positive trends in services and consumables.

Key Takeaways

• Q2 sales reached $1.5 billion, with adjusted EBITDA of $122 million, including a $6.8 million net tariff refund.
• The nationwide relaunch of the Petco Perks membership program resulted in redemption volumes significantly exceeding initial projections, negatively impacting reported net sales and service revenues.
• Underlying sales performance prior to the membership rollout was stronger than the reported headline, with positive comps for the second consecutive quarter.
• Strong double-digit growth in veterinary hospital visits and continued expansion of doctor availability underscore strength in the services segment.
• Growth drivers included consumables gains led by new cat-focused SKUs and private label launches, alongside growth in less traditional categories such as live reptiles and pet-friendly gardening products.