Petco Health and Wellness Company, Inc.

Snowflake shares surged 24% in premarket trading after its second-quarter results beat analyst expectations, with adjusted earnings of 62 cents per share on revenue of $1.55 billion, surpassing the LSEG consensus of 45 cents and $1.48 billion, and the company raised its full-year product revenue guidance. The rally lifted software peers, with Datadog jumping over 5%, ServiceNow up 3%, and Salesforce rising 1.5%. In other moves, Hewlett Packard Enterprise slipped 3% after forecasting earnings growth of 16% to 20% for fiscal 2027, below the FactSet consensus of 18.7%, while Broadcom lost 2.5% as its fourth-quarter revenue forecast of $34.8 billion missed the $35.03 billion estimate. Campbell's Company fell nearly 7% on weak fiscal 2027 guidance, and Ultragenyx Pharmaceutical plunged over 46% after its Angelman syndrome drug failed a Phase 3 trial. On the upside, Petco jumped almost 9% on better-than-expected margins, Argan popped 7.5% on strong earnings, Five Below rose 4.5% on a beat, and Netskope gained 12% on upbeat revenue guidance, while Victoria's Secret sank over 18% on a revenue miss and NetApp shed 8% on soft deferred revenue.

Petco Health and Wellness reported first-quarter 2026 results on June 3, with comparable sales rising 0.7%, the first positive comp in five quarters. Net sales edged up 0.2% to $1.5 billion, gross margin expanded 21 basis points to 38.4%, and operating income jumped 50.5% to $24.6 million. Adjusted EBITDA reached $97.3 million, up from $89.4 million a year earlier, while net loss widened to $15.1 million from $11.7 million. CEO Joel Anderson said the results validate the company's strategy, and Petco reaffirmed its full-year adjusted EBITDA guidance of $415 million to $430 million. Following the report, Goldman Sachs raised its price target to $4.14 from $3.83 with a Neutral rating, Evercore ISI lifted its target to $3.50 from $3 with an In Line rating, and Citi lowered its target to $3.25 from $4 while maintaining Neutral.