Petco Reports Q2 2026 Earnings and Strategy Update
In its second-quarter earnings call for fiscal year 2026, Petco reported sales of $1.5 billion with adjusted EBITDA reaching $122 million, which included a net tariff refund of $6.8 million. The company highlighted progress on its Phase 3 'Reach for the Sky' strategy and noted positive comp growth for two consecutive quarters. A key focus was the relaunch of Petco Perks, the customer membership program, designed to improve engagement by simplifying point redemption. While initial results showed strong member participation, it temporarily hurt Q2 sales—particularly in services—as redemptions exceeded expectations. The company has since implemented measures to manage redemption velocity and is now shifting focus toward personalization features expected to drive long-term growth. Petco also voluntarily prepaid an additional $75 million in debt on September 1, reflecting strong cash generation and confidence for the remainder of the year.
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