# WOOF Stock: Petco Q2 FY2026 Earnings - Profit Tripled, Two Thirds From Tax

Page: https://stenobird.com/podcast/charged-alpha-stock-encyclopedia-7819792/woof-stock-petco-q2-fy2026-earnings-profit-tripled-two-thirds-from-tax
Text version: https://stenobird.com/podcast/charged-alpha-stock-encyclopedia-7819792/woof-stock-petco-q2-fy2026-earnings-profit-tripled-two-thirds-from-tax.md
Podcast: [Charged Alpha Stock Encyclopedia](https://stenobird.com/podcast/charged-alpha-stock-encyclopedia-7819792)
Published: 2026-09-04T00:28:27+00:00
Episode link: https://chargedalpha.podbean.com/e/woof-stock-petco-q2-fy2026-earnings-profit-tripled-two-thirds-from-tax/
Audio file: https://mcdn.podbean.com/mf/web/vp8ap1hm5a4qb3xb/audio_x.mp3
Processing state: not_requested
JSON: https://stenobird.com/v1/public/podcasts/charged-alpha-stock-encyclopedia-7819792/episodes/woof-stock-petco-q2-fy2026-earnings-profit-tripled-two-thirds-from-tax
Duration seconds: 861

## Resource

Petco (WOOF) Q2 FY2026 — It gapped more than 20% higher on the print and handed the whole move back within the session. Petco reported second-quarter net income of $38.7M against $14.0M a year ago - but $16.5M of that $24.7M increase is the income tax line, which swung from a $0.7M charge to a $15.7M credit. Strip the $6.8M IEEPA tariff refund the company quantifies and operating income actually fell 4.7%. THE CALL: HOLD (3/5, MODERATE) — base-case value ~$3.00 vs ~$2.57 today. KEY METRICS: - Net sales $1,489.2M, +0.05% YoY - below the ~+0.3% Petco guided in June - Comparable sales +0.6% - a second consecutive positive quarter - Adjusted EBITDA $122.2M vs a $110-112M guide; $115.4M without the tariff refund - Net income $38.7M vs $14.0M - but $16.5M of the $24.7M rise is income tax - Operating income $47.8M; ex the $6.8M IEEPA refund $41.0M, down 4.7% YoY - H1 free cash flow $60.8M vs $9.9M; net debt $1,186.4M = 2.80x adjusted EBITDA - FY2026 outlook reaffirmed at $415-430M adjusted EBITDA for a third time What to watch: the Q3 release in late November - does adjusted EBITDA clear the $100-103M guide without a tariff refund, and does the reaffirmed full-year range finally move Also on YouTube: @ChargedAlpha DISCLAIMER: For informational and educational purposes only. Not financial advice. Do your own research before any investment decision.

## Actions

- request_transcript: `POST https://stenobird.com/v1/public/podcasts/charged-alpha-stock-encyclopedia-7819792/episodes/woof-stock-petco-q2-fy2026-earnings-profit-tripled-two-thirds-from-tax/transcription-requests` — Idempotently request low-priority transcript generation for this episode.
- read_markdown: `GET https://stenobird.com/podcast/charged-alpha-stock-encyclopedia-7819792/woof-stock-petco-q2-fy2026-earnings-profit-tripled-two-thirds-from-tax.md` — Read the agent-friendly Markdown representation of this episode resource.

A page view does not enqueue transcription. Agents should invoke `request_transcript` explicitly when they need this episode processed.

## Transcript

Full transcripts are not published on public pages unless there is a clear rights basis.