Petco Health and Wellness

Q2 FY2027 EarningsQ2 FY27 delivered a significant beat on profitability, with normalized EPS of $0.13 vs. $0.07 expected, and a GAAP net income beat driven by a one-time $13.4M tax benefit. While revenue of $1.49B was in-line with consensus, the gross margin of 39.7% exceeded the 39.3% estimate due to tariff refunds and service-mix optimization. Strong Free Cash Flow of $60.8M for the first half of the year suggests improving operational efficiency despite a flat top-line performance.