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Warner Music Group Corp. (WMG) Q2 2026 Earnings Call Transcript

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NEW YORK--(BUSINESS WIRE)--Warner Music Group Corp. announced today that Armin Zerza, Chief Operating Officer and Chief Financial Officer, will participate in a question and answer session during the J.P. Morgan Global Technology, Media and Communications Conference on Wednesday, May 20th, at 10:40am ET, instead of the previously announced time of 11:20am ET.

A live webcast of the session will be available to the general public through a link on the Investor Relations page of Warner Music Group’s website. A replay of the audio webcast will be available in the Past Events section of Warner Music Group’s Investor Relations homepage.

About Warner Music Group
Warner Music Group (WMG) brings together artists, songwriters, entrepreneurs, and technology that are moving entertainment culture across the globe. WMG’s Recorded Music division includes renowned labels such as 10K Projects, 300 Entertainment, Asylum, Atlantic, Big Beat, EastWest, Elektra, Erato, Fueled By Ramen, Nonesuch, Parlophone, Reprise, Rhino, Roadrunner, Sire, Spinnin’, Warner Records, Warner Classics, and Warner Records Nashville. WMG’s music publishing arm, Warner Chappell Music, has a catalog of over one million copyrights spanning every musical genre, from the standards of the Great American Songbook to the biggest hits of the 21st century. Warner Music Group is also home to ADA, which supports the independent community, as well as artist services division WMX. Follow WMG on Instagram, X, TikTok, LinkedIn, and Facebook.

On May 18, 2026, Warner Music Group Corp WMG shares rose 3.4% to a current price of $34.56. The stock has shown strong performance with a 52-week range of $23.34 to $34.63.

GF Value™ verdict: Current price is equal to GF Value™ of $34.56, indicating fairly valued with 0% upside/downside.GF Score™ of 82/100 suggests a strong overall ranking, indicating potential for higher long-term returns.No insider transactions have been reported in the last 3 months, suggesting a neutral sentiment among insiders. Is WMG Overvalued or Undervalued? Warner Music Group Corp's current price of $34.56 aligns perfectly with its GF Value™ estimate of $34.56, indicating that the stock is fairly valued. This means there is no margin of safety for investors looking to enter at this price point. The GF Valuation label suggests that the stock is trading at its intrinsic value, reflecting the current market sentiment and performance expectations.

GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. Given the current valuation context, investors should be cautious as there is limited room for error, and any unforeseen adverse developments could lead to a decline in stock price.

How Does WMG's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 40.7x 39.0x Forward P/E 24.9x N/A Currently, WMG's P/E (TTM) of 40.7x is 4% above its 5-year median P/E of 39.0x, indicating that the stock is trading slightly above its historical valuation. This analysis aligns with the GF Value™ verdict that suggests the stock is fairly valued, as the forward P/E also indicates a more optimistic outlook moving forward.

What Does WMG's GF Score™ Tell Us? Metric Rating GF Score™ 82 Financial Strength 4/10 Profitability 7/10 Growth 7/10 Valuation 9/10 Momentum 7/10 The GF Score™ of 82/100 reflects a strong position for WMG, signifying potential for higher long-term returns. The valuation rank of 9/10 stands out as the strongest aspect of the score, indicating that the stock is attractively valued relative to its potential. However, the financial strength score of 4/10 suggests some vulnerability, indicating that the company may not be as stable as desired. This mixed picture implies that while there is promise in profitability and growth, financial strength remains a concern.

What Are Insiders Doing with WMG Stock? In the past three months, there have been no reported insider transactions for Warner Music Group Corp. This absence of insider trading activity typically indicates neutrality among insiders regarding the company's future prospects. Such patterns can suggest that insiders do not perceive immediate opportunities or risks that warrant buying or selling shares.

What This Means for Investors Based on the GF Value™ analysis, Warner Music Group Corp WMG is currently fairly valued at $34.56. With a strong GF Score™ of 82/100, the stock does exhibit solid fundamentals, although the financial strength aspect raises some caution. Investors may consider these factors when evaluating their positions.

For the complete analysis, visit the Warner Music Group Corp WMG stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is WMG's GF Score™?

WMG's GF Score™ is 82/100, indicating a strong overall ranking that suggests potential for higher long-term returns based on historical performance.

Is WMG overvalued or undervalued?

WMG is fairly valued according to the GF Value™ estimate, aligning with its current market price of $34.56.

What is WMG's P/E ratio?

WMG's P/E (TTM) is 40.7x, which is slightly above its 5-year median P/E of 39.0x, indicating that the stock is trading at a premium compared to its historical valuation.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Warner Music Group Corp. (WMG - Free Report) appears an attractive pick given a noticeable improvement in the company's earnings outlook. The stock has been a strong performer lately, and the momentum might continue with analysts still raising their earnings estimates for the company.

Analysts' growing optimism on the earnings prospects of this company is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- is principally built on this insight.

The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.

For Warner Music Group Corp., there has been strong agreement among the covering analysts in raising earnings estimates, which has helped push consensus estimates considerably higher for the next quarter and full year.

The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate:

12 Month EPS

Current-Quarter Estimate RevisionsThe earnings estimate of $0.38 per share for the current quarter represents a change of +1,366.7% from the number reported a year ago.

The Zacks Consensus Estimate for Warner Music Group has increased 6.59% over the last 30 days, as two estimates have gone higher while one has gone lower.

Current-Year Estimate RevisionsFor the full year, the earnings estimate of $1.52 per share represents a change of +120.3% from the year-ago number.

The revisions trend for the current year also appears quite promising for Warner Music Group, with four estimates moving higher over the past month compared to no negative revisions. The consensus estimate has also received a boost over this time frame, increasing 7.74%.

Favorable Zacks RankThe promising estimate revisions have helped Warner Music Group earn a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision.

You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.

Bottom LineWarner Music Group shares have added 19.3% over the past four weeks, suggesting that investors are betting on its impressive estimate revisions. So, you may consider adding it to your portfolio right away to benefit from its earnings growth prospects.

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When music executive Anjula Acharia began launching superstar actress Priyanka Chopra Jonas into Hollywood in the early 2000s, her label partner Jimmy Iovine — the name behind pop sensations such as Eminem and Lady Gaga — told her she was 20 years too early to bring South Asian talent to the U.S.

Now, Acharia is the founder and CEO of 5 Junction, a joint label with Warner Music Group focused specifically on investing in South Asian artists in the U.S.

"That sounded crazy, to think we were 20 years too early, but now, 20 years later, with the explosion of people like Diljit Dosanjh and Karan Aujla ... there's all these South Asian acts that are coming here and really selling out, particularly in the live arena," Acharia told CNBC.

The South Asian music market in the U.S. has remained largely untapped, but as music becomes more globalized, as with the success of K-pop and Latin acts, South Asian talent is making a case to investors as the next big business opportunity, Acharia said.

Global music revenues are reaching all-time highs, surpassing $30 billion in 2025, according to the International Federation of the Phonographic Industry. Spotify said last year that streams of Indian artists in international markets grew more than 2,000% between 2019 and 2023, and nearly 50% of royalties from Indian artists on the platform in 2024 were from listeners outside India.

With South Asia's growing population and diaspora, it's set to be one of the fastest-growing segments within global music, according to Acharia.

"We're in a different time, and I think digitally things travel just so much faster," she said. "A lot of big hits were made with samples from Indian music, so it's been in the zeitgeist for a long time — it's just not been given a face."

As more labels look to the subcontinent, Acharia said the business is currently in a stage of experimentation, figuring out what works and how the fan bases will evolve. Warner Music Group is the third-largest music label in the U.S., holding roughly 17% market share by distribution ownership as of the first quarter of 2026, according to Billboard.

"I think the business proposition is this global Indian fandom," she said. "How do we galvanize this audience and this fandom, and how do we serve it?"

5 Junction represents top artists such as singer and songwriter Rhea Raj, who told CNBC she's seeing South Asian music become more mainstream in the U.S.

"We're seeing more artists at bigger festivals and at award shows, and I think the best of it's yet to come," Raj said.

Raj and her sister, Lara Raj, of the girl group Katseye, are two of many South Asian artists in the U.S. building out fan bases that span backgrounds and ethnicities.

Rhea Raj, who got her start on "American Idol" nearly a decade ago, said she believes now is the time that South Asian music is going to "explode" in the U.S., especially as 5 Junction continues to bring more artists to the main stages.

"South Asian music, it is so diverse, and within that, there are so many countries and regions and styles and things to break down and explore, and I just hope that as time goes on and we have more artists in the mainstream pop world, we'll get to see more and more pieces of that," she said.

'Building worlds'The streaming era has helped Warner Records to narrow its focus on the South Asian music business because it lowers the barriers to entry, said Karen Kwak, the company's executive vice president and head of artists and repertoire.

Kwak told CNBC that when she got into the music business, there were practically no other executives or artists who looked like her. Now, that picture has changed dramatically.

Kwak said the younger generations, especially in South Asia, are driving current music trends.

"That is what is so great about the music world we live in today, is that everybody is embracing who they are, and I think youth all over the world, they want to see stars that look like them," Kwak said. "It's a rabid fandom in India ... and it's exactly where we want to be."

The record company is also focused on encouraging collaborations between South Asian musicians and popular American artists to help them break into the music scene, she added.

"It's really about building worlds, and yes, of course, we're going to continue investing [in South Asian talent]," she said. "It is what music is. We're changing and impacting and creating the new music culture."

It's also important to Warner to be "genre-bending and genre-blending," Kwak said, adding that the company is investing in South Asian talent that spans multiple types of music, languages and audiences.

Nora Fatehi is one of those artists. The Moroccan Canadian singer and actress, who has more than 45 million followers on Instagram, saw the potential in the South Asian market and broke in — targeting that audience even though she doesn't have a connection to South Asia — and became one of the biggest names in the business.

"Right now, what 5 Junction and Warner are trying to do is tap into the different talent that's coming out of that country, give it a platform, and also allow people around the world to consume the music and to consume the artistry like never before," she told CNBC.

Fatehi, who will be performing at the World Cup opening ceremony in Toronto in a few weeks, said that even though the American market is hard to crack as an outsider, she's seeing the results take hold as more talent from South Asia crosses into the West.

"I think the audience is ready for different stuff," Fatehi said. "Now, with YouTube and Spotify and with social media, I don't think borders exist any longer. ... I think labels and managements and platforms realize that people are ready to consume different types of music."

— CNBC's Ryan Baker contributed to this report.

Here are three stocks with buy rank and strong income characteristics for investors to consider today, June 10:

ARKO Petroleum Corp. (APC - Free Report) : This fuel distribution company witnessed the Zacks Consensus Estimate for its current year earnings increasing 7% the last 60 days.

This Zacks Rank #1 company has a dividend yield of 5.3%, compared with the industry average of 2.1%.

Warner Music Group Corp. (WMG - Free Report) : This music entertainment company has witnessed the Zacks Consensus Estimate for its current year earnings increasing 8.6% the last 60 days.

This Zacks Rank #1 company has a dividend yield of 2.5%, compared with the industry average of 0.7%.

Columbus McKinnon Corporation (CMCO - Free Report) : This material handling equipment company has witnessed the Zacks Consensus Estimate for its current year earnings increasing 5% in the last 60 days.

This Zacks Rank #1 company has a dividend yield of 2.3%, compared with the industry average of 0.1%.

See the full list of top ranked stocks here.

Find more top income stocks with some of our great premium screens.

theWarner Music Music (WMG) announced on Wednesday that it’s acquiring AI attribution startup Sureel AI. Sureel’s patented technology creates “AI DNA” for songs and breaks them down into component parts to trace how AI models use those elements.

Through the acquisition, WMG aims to better track when its artists’ and songwriters’ work is used in AI-generated content or for training AI models.

“Bringing Sureel into WMG strengthens our capability for protection, control and monetization and ensures that the creative community remains in control of its intellectual property, name, image, likeness, and voice,” said WMG chief executive Robert Kyncl in the press release.

The financial terms of the deal were not disclosed.

Founded in 2022, Sureel also offers intellectual property provenance, audit and compliance reporting, model optimization, and AI business intelligence. The startup also has a name, image, and likeness (NIL) attribution suite to track how artist voices, likenesses, and performance identities are used in AI training and generation. This includes voice clones, AI-generated avatars, and style replication. 

The startup will continue to operate as a stand-alone platform serving the broader music and AI ecosystem, WMG says.

“Rightsholders deserve to know how AI interacts with their work, and to share fairly in the value it creates,” Sureel founder and chief executive Tamay Aykut said in remarks. “Sureel was built to make that possible, and with WMG’s backing, we can deliver on our mission at scale, building a more transparent and fair future and driving value growth for the whole music and entertainment ecosystem.”

WMG has embraced AI after initially opposing it, as the company originally sued music-generation startup Suno in 2024 and later signed a licensing deal with the company last year. WMG said at the time that artists and songwriters would have full control over whether and how their names, images, likenesses, voices, and compositions are used in new AI-generated music.

It’s worth noting that Sony Music Entertainment and Universal Music Group are still pursuing massive copyright infringement claims against the AI music startup.

WMG last year also settled its lawsuit against AI music startup Udio and reached a licensing deal with the company.

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Aisha is a consumer news reporter at TechCrunch. Prior to joining the publication in 2021, she was a telecom reporter at MobileSyrup. Aisha holds an honours bachelor’s degree from University of Toronto and a master’s degree in journalism from Western University.

You can contact or verify outreach from Aisha by emailing [email protected] or via encrypted message at aisha_malik.01 on Signal.

Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, May 15:

H World Group Limited (HTHT - Free Report) : This hotel franchise based out of China carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 6.7% over the last 60 days.

H World Group has a PEG ratio of 1.18 compared with 1.25 for the industry. The company possesses a Growth Score of B.

Petco Health and Wellness Company, Inc. (WOOF - Free Report) : This pet specialty retailer carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 26.7% over the last 60 days.

Petco Health has a PEG ratio of 1.22 compared with 2.43 for the industry. The company possesses a Growth Score of A.

Five Below, Inc. (FIVE - Free Report) : This company that operates as a specialty value retailer in the United States carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 14.6% over the last 60 days.

Five Below has a PEG ratio of 1.61 compared with 2.43 for the industry. The company possesses a Growth Score of A.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Learn more about the Growth score and how it is calculated here.

, /PRNewswire/ -- Petco (Nasdaq: WOOF), the retailer "where the pets go" to find everything they need to live their best lives, today announced that its financial results for the first quarter fiscal 2026 will be released at approximately 4:00 p.m. Eastern Time on Wednesday, June 3, 2026. The company will host a conference call at approximately 4:15 p.m. Eastern Time to discuss the results.

A live webcast of the conference call, as well as the earnings release and earnings presentation, will be available on the company's Investor Relations page at https://ir.petco.com/news-and-events/events-and-presentations.  A replay of the webcast will be available through the same link approximately two hours after the conference call. 

About Petco:

We're proud to be "where the pets go" to find everything they need to live their best lives for more than 60 years — from their favorite meals and toys, to trusted supplies and expert support from people who get it, because we live it. We believe in the universal truths of pet parenthood — the boundless boops, missing slippers, late night zoomies and everything in between. And we're here for it. Every tail wag, every vet visit, every step of the way. We nurture the pet-human bond in the aisles of more than 1,500 Petco stores across the U.S., Mexico and Chile. Customers experience our exclusive selection of pet care products, services, expertise and membership offerings in stores and online at petco.com, and on the Petco app. In 1999, we founded Petco Love. Together, we support thousands of local animal welfare groups nationwide and have helped find homes for over 7 million animals through in-store adoption events.

SOURCE Petco - Investor Relations

Curebound’s annual benefit concert with headliner P!NK raises over $8.25 million in one night for cancer research, joining a roster of past headliners that includes Elton John, Ed Sheeran and Alicia Keys.

SAN DIEGO--(BUSINESS WIRE)--Curebound, a cancer research accelerator, today announced that its 2026 Concert for Cures, headlined by global music icon P!NK, raised $8.25 million, bringing the total raised across the four-year history of the concert series to more than $28 million for cancer research. The May 15 concert at Petco Park drew 25,000 fans, including thousands of cancer survivors, 1,500 who were invited to attend by the Manchester Family Foundation.

Curebound's 2026 Concert for Cures, headlined by global music icon P!NK, raised $8.25 million, bringing the total raised across the four-year history of the concert series to more than $28 million for cancer research.

Share Since launching in 2022, Concert for Cures has united over 60,000 people in San Diego with A-list headliners – Elton John, Ed Sheeran, Alicia Keys and now P!NK – to raise millions for adult and pediatric cancer research. The event has grown exponentially each year, emerging as a marquee night where entertainment, science and community intersect to accelerate the fight against cancer.

P!NK delivered an exhilarating, high-flying performance that brought the Petco Park crowd to its feet from the first note. Known worldwide for her fearless live shows and powerhouse vocals, the global superstar delivered her biggest hits and emotional stripped-down moments, turning the stadium into one of the most memorable nights in Concert for Cures history.

During her performance, P!NK reiterated from the stage, “I want to give a shoutout to Curebound because you are doing some of the most important work that there is to do. Cancer sucks and I am just very grateful to be of use, and I am very grateful to be here with all of you, and I am just very grateful.”

Curebound CEO Robin Toft also delivered powerful remarks on stage that connected the energy of the night to the urgency of the mission, underscoring the importance of continuing to support cancer research.

“Every person in this stadium is helping fund the science that will define how we prevent, detect and treat cancer for the next generation. At a time when national research funding remains uncertain, what we are doing here at Curebound matters more than ever,” says Toft.

Jean-Baptiste Maillard, USA CEO of Chopard, the Swiss luxury watch and jewelry maker and sponsor of Concert for Cures: P!NK, says, "At Chopard, we believe in causes that endure. We are honored to stand alongside Curebound in their ongoing efforts toward prevention, early detection, and treatment, with the ultimate goal of improving survivorship.”

Curebound Board Chair Rick Valencia, who co-chaired the 2026 concert organizing committee with his daughter, Aubrey Salvati, says, "Every research breakthrough gives families more options, every option gives them more time, and more time offers more hope. That's how Curebound measures success, not just in dollars raised, but in the moments families get to share together."

Sponsors

Curebound thanks the generous sponsors and supporters who made the 2026 Concert for Cures possible:

ClayCo Manchester Family Foundation UC San Diego Rady Children's Health Chopard Salk Institute for Biological Studies La Jolla Institute for Immunology San Diego State University JP Morgan Chase Ferrari of San Diego San Diego BioMed Edward Jones UC San Diego Concierge Medicine Brand Napa Valley Casa Dragones Garrett Popcorn Ranch & Coast Nutrafol Kroma goop Equo Co. Messy by Alli Webb Art of Skin MD Save the Date: Curebound Cancer Challenge at UC San Diego August 1, 2026.

Ready to end cancer? Join Curebound for the annual Curebound Cancer Challenge where you can ride, run, walk or spin to raise awareness and funds for cancer research. Registration is open now at curebound.org/curebound-cancer-challenge.

About Curebound

Curebound is a community-powered cancer research accelerator dedicated to advancing breakthrough science into cures. By breaking down barriers, investing in high-impact cancer studies and forging powerful collaborations among top scientists, passionate advocates, entrepreneurs and philanthropists, Curebound advances bold science toward better prevention, detection and treatments to give patients and families more time. To date, Curebound has awarded $51.5 million in cancer research grants, supporting 170 studies across 23 types of cancers. That investment has led to 28 clinical trials and generated $161 million in follow-on funding for expanded research. Headquartered in San Diego, a leading global hub for life sciences and cancer research, Curebound is driven by a single goal: save lives. www.curebound.org.

Returns to Positive Comp Growth in Q1, Validating 'Reach for the Sky' Initiatives
Delivers Q1 Sales and Profitability Ahead of Previously Provided Outlook
Reaffirms Fiscal 2026 Outlook and Provides 2Q Outlook*

, /PRNewswire/ -- Petco (Nasdaq: WOOF), the retailer "where the pets go" to find everything they need to live their best lives, today reported its first quarter 2026 financial results.

"Our strong first-quarter results, highlighted by positive comparable sales and profitability that exceeded our outlook, provide clear, early validation that our Phase 3 'Reach for the Sky' strategy is working.  We were particularly pleased to see the improvement in our consumables business, while our differentiated services business continues to outperform and is a key engine of our growth.  This solid start to the year demonstrates the power of our distinct, wholly owned omnichannel ecosystem. As we look ahead, we are pleased with the momentum our initiatives are generating, positioning us to continue to deliver positive comps.  We remain highly confident in our ability to drive consistent, long-term growth," said Joel Anderson, Chief Executive Officer of Petco.

Q1 2026 Overview

For the first quarter of 2026 compared to the first quarter of 2025:

Net sales of $1.5 billion increased 0.2%; comparable sales increased 0.7%. Gross profit increased to $574.4 million; gross margin rate increased 21 basis points to 38.4%.  Operating income increased 50.5% to $24.6 million; operating margin increased 55 basis points to 1.6%. Net loss of $15.1 million versus a net loss of $11.7 million. Adjusted EBITDA2 of $97.3 million versus $89.4 million. The Company closed 4 net stores, ending the quarter with 1,378 stores. Sabrina Simmons, Chief Financial Officer of Petco, added, "Our strong first-quarter results—which marked a return to positive comparable sales growth—demonstrate that our operational and economic improvements are materializing. We are pleased to reaffirm our full-year outlook. As our strategic initiatives continue to take hold, we continue to be focused on strengthening our retail and financial fundamentals to support sustainable, profitable growth and remain committed to reducing our leverage ratio to 2x."1

Q1 2026 Balance Sheet and Cash Flow

Ending cash balance grew by $33.5 million to $166.8 million versus $133.3 million last year. Inventory fell 1.9% year-over-year versus the 0.2% increase in net sales. Cash used in operating activities was $31.0 million compared to $15.5 million last year. Free cash flow2 was an outflow of $69.1 million versus an outflow of $43.9 million last year.   Total debt was $1.482 billion, down from $1.593 billion last year. 2026 Outlook

The company reaffirmed its full year 2026 net sales and EBITDA outlook and provided its outlook for the second quarter of 2026.

Assumptions in the outlook include that economic conditions, currency rates and the tax and regulatory landscape remain generally consistent, and that current or planned tariffs on imports into the U.S. from China and other countries as of June 3, 2026, will remain at current levels. Additionally, our outlook assumes the benefit of a partial IEEPA tariff refund received in May 2026, with no additional refunds assumed for the balance of the year, and now assumes that fuel prices remain elevated at approximately those experienced in the first quarter for the remainder of the year, compared to our prior outlook which assumed higher fuel prices for the first quarter only.

With respect to the second quarter specifically, the benefit of the tariff refund received in May 2026 is expected to be approximately offset by incremental tariffs and higher fuel costs anticipated in the period. The prior-year second quarter included an approximately $9 million SG&A benefit from a favorable semi-annual actuarial true-up related to employee optimization work, which the Company does not expect to recur in the second quarter of 2026.

Full Year 2026 Outlook 

FY 2026 Outlook*

    Net Sales

Flat to up 1.5% year over year

    Adjusted EBITDA2

$415 million to $430 million

    Net Interest Expense

~$125 million

    Capital Expenditures

~$140 million

    Depreciation & Amortization

~$200 million

    Net Store Closures

~15-20

Second Quarter 2026 Outlook    

Q2 2026 Outlook*

    Net Sales 3

Up about 0.3% year over year, in line with consensus  

Adjusted EBITDA 2

$110 million to $112 million

(1)

Leverage ratio is defined as net debt divided by Adjusted EBITDA

(2)

Adjusted EBITDA and Free Cash Flow are non-GAAP financial measures. See "Non-GAAP Financial Measures" for additional information on non-GAAP financial measures and a reconciliation to the most comparable GAAP measures.

(3)

According to Company-compiled data as of May 28, 2026, the current Factset consensus of 10 sell-side analyst expectations for Q2 2026 net sales implies a year-over-year growth rate of 0.3%.

* Adjusted EBITDA is a non-GAAP financial measure and has not been reconciled to the most comparable GAAP outlook because it is not possible to do so without unreasonable efforts due to the uncertainty and potential variability of reconciling items, which are dependent on future events and often outside of management's control and which could be significant. Because such items cannot be reasonably predicted with the level of precision required, we are unable to provide outlook for the comparable GAAP measures. Forward-looking estimates of Adjusted EBITDA are made in a manner consistent with the relevant definitions and assumptions noted herein and in our filings with the Securities and Exchange Commission.

Earnings Conference Call Webcast Information:

Management will host an earnings conference call on June 3, 2026 at approximately 4:15 PM Eastern Time to discuss the company's financial results. A live webcast of the conference call will be available on the company's Investor Relations page at https://ir.petco.com/news-and-events/events-and-presentations. A replay of the webcast will be available through the same link approximately two hours after the conference call. 

About Petco:  

We're proud to be "where the pets go" to find everything they need to live their best lives for more than 60 years — from their favorite meals and toys, to trusted supplies and expert support from people who get it, because we live it. We believe in the universal truths of pet parenthood — the boundless boops, missing slippers, late night zoomies and everything in between. And we're here for it. Every tail wag, every vet visit, every step of the way. We nurture the pet-human bond in the aisles of more than 1,500 Petco stores across the U.S., Mexico and Chile. Customers experience our exclusive selection of pet care products, services, expertise and membership offerings in stores and online at petco.com, and on the Petco app. In 1999, we founded Petco Love. Together, we support thousands of local animal welfare groups nationwide, and have helped find homes for over 7 million animals through in-store adoption events.

Forward-Looking Statements:

This earnings release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 as contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, concerning expectations, beliefs, plans, objectives, goals, strategies, future events or performance and underlying assumptions and other statements that are not statements of historical fact, including, but not limited to, statements regarding our Q2 and full year 2026 outlook, operational reset of our business, our competitive positioning, profitability, cash generation through our economic model, expense leverage, operating margin expansion, cost action plans and associated cost-savings, our path to sustainable, profitable growth and our expectations regarding tariffs and associated impacts. Such forward-looking statements can generally be identified by the use of forward-looking terms such as "believes," "expects," "may," "intends," "will," "shall," "should," "anticipates," "opportunity," "illustrative," "estimates," "projects", "forecasts" or the negative thereof or other variations thereon or comparable terminology. These statements are only predictions based on our current expectations and projections about future events and reflect our beliefs regarding such future events and do not represent historical facts or statements of current condition. Although Petco believes that the expectations and assumptions reflected in these statements are reasonable, there can be no assurance that these expectations will prove to be correct or that any forward-looking results will occur or be realized. Nothing contained in this earnings release is, or should be relied upon as, a promise or representation or warranty as to any future matter, including any matter in respect of the operations or business or financial condition of Petco. All forward-looking statements are based on current expectations and assumptions about future events that may or may not be correct or necessarily take place and that are by their nature subject to significant uncertainties and contingencies, many of which are outside the control of Petco. Forward-looking statements are subject to a number of risks, uncertainties and other factors that could cause actual results or events to differ materially from the potential results or events discussed in the forward-looking statements, including, without limitation, those identified in this earnings release as well as the following: (i) increased competition (including from multi-channel retailers, mass and grocery retailers, and e-Commerce providers); (ii) reduced consumer demand for our products and/or services; (iii) our reliance on key vendors; (iv) our ability to attract and retain qualified employees; (v) risks arising from statutory, regulatory and/or legal developments; (vi) macroeconomic pressures in the markets in which we operate, including inflation, prevailing interest rates and the impact of tariffs; (vii) failure to effectively manage our costs; (viii) our reliance on our information technology systems; (ix) our ability to prevent or effectively respond to a data privacy or security breach; (x) our ability to effectively manage or integrate strategic ventures, alliances or acquisitions and realize the anticipated benefits of such transactions; (xi) economic or regulatory developments that might affect our ability to provide attractive promotional financing; (xii) business interruptions and other supply chain issues; (xiii) catastrophic events, political tensions, conflicts and wars (such as the ongoing conflicts in Ukraine and the Middle East), government shutdowns, health crises, and pandemics; (xiv) our ability to maintain positive brand perception and recognition; (xv) product safety and quality concerns; (xvi) changes to labor or employment laws or regulations; (xvii) our ability to effectively manage our real estate portfolio; (xviii) constraints in the capital markets or our vendor credit terms; (xix) changes in our credit ratings; (xx) impairments of the carrying value of our goodwill and other intangible assets; (xxi) our ability to successfully implement our operational adjustments, achieve the expected benefits of our cost action plans and drive improved profitability; (xxii) our ability to deliver sustainable, profitable growth and (xxiii) the other risks, uncertainties and other factors identified under "Risk Factors" in our most recent Annual Report on Form 10-K  and elsewhere in Petco's Securities and Exchange Commission filings. The occurrence of any such factors could significantly alter the results set forth in these statements.

Petco cautions that the foregoing list of risks, uncertainties and other factors is not complete, and forward-looking statements speak only as of the date they are made. Petco undertakes no duty to update publicly any such forward-looking statement, whether as a result of new information, future events or otherwise, except as may be required by applicable law, regulation or other competent legal authority

PETCO HEALTH AND WELLNESS COMPANY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)

(Unaudited and subject to reclassification)

13 Weeks Ended

May 2,
2026

May 3,
2025

Net sales:

Products

$    1,228,087

$    1,241,891

Services and other

268,645

251,508

Total net sales

1,496,732

1,493,399

Cost of sales:

Products

757,778

766,285

Services and other

164,529

157,146

Total cost of sales

922,307

923,431

Gross profit

574,425

569,968

Selling, general and administrative expenses

549,799

553,609

Operating income

24,626

16,359

Interest income

(1,497)

(1,359)

Interest expense

32,785

33,494

Loss on extinguishment and modification of debt

11,840

—

Loss before income taxes and income from
   equity method investees

(18,502)

(15,776)

Income tax expense

2,199

495

Income from equity method investees

(5,555)

(4,610)

Net loss attributable to Class A and B-1 common
   stockholders

$       (15,146)

$       (11,661)

Net loss per Class A and B-1 common share:

Basic

$            (0.05)

$            (0.04)

Diluted

$            (0.05)

$            (0.04)

Weighted average shares used in computing net loss per Class A
   and B-1 common share:

Basic

283,684

277,548

Diluted

283,684

277,548

PETCO HEALTH AND WELLNESS COMPANY, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands, except per share amounts)

(Unaudited and subject to reclassification)

 May 2,
2026 

 January 31,
2026 

ASSETS

Current assets:

Cash and cash equivalents

$       166,804

$       256,736

Receivables, less allowance for credit losses1

36,928

45,812

Merchandise inventories, net

632,912

590,210

Prepaid expenses

64,036

51,747

Other current assets

60,164

75,281

Total current assets

960,844

1,019,786

Fixed assets

2,404,132

2,378,208

Less accumulated depreciation

(1,758,226)

(1,722,060)

Fixed assets, net

645,906

656,148

Operating lease right-of-use assets

1,265,299

1,288,593

Goodwill

980,064

980,064

Trade name

1,025,000

1,025,000

Other long-term assets

207,473

203,834

Total assets

$    5,084,586

$    5,173,425

LIABILITIES AND EQUITY

Current liabilities:

Accounts payable and book overdrafts

$       480,656

$       450,552

Accrued salaries and employee benefits

107,784

154,148

Accrued expenses and other liabilities

216,183

204,751

Current portion of operating lease liabilities

312,399

320,082

Current portion of long-term debt and other lease liabilities

13,245

4,608

Total current liabilities

1,130,267

1,134,141

Senior secured credit facilities, net, excluding current portion

874,116

1,488,527

Senior notes, net

590,146

—

Operating lease liabilities, excluding current portion

994,995

1,047,185

Deferred taxes, net

235,197

234,911

Other long-term liabilities

104,560

104,407

Total liabilities

3,929,281

4,009,171

Commitments and contingencies

Stockholders' equity:

Class A common stock2

247

244

Class B-1 common stock3

38

38

Class B-2 common stock4

—

—

Preferred stock5

—

—

Additional paid-in-capital

2,318,877

2,312,354

Accumulated deficit

(1,155,139)

(1,139,993)

Accumulated other comprehensive loss

(8,718)

(8,389)

Total stockholders' equity

1,155,305

1,164,254

Total liabilities and stockholders' equity

$    5,084,586

$    5,173,425

¹ Allowances for credit losses are $858 and $779, respectively

² Class A common stock, $0.001 par value: Authorized - 1.0 billion shares;
        Issued and outstanding - 247.4  million and 243.7  million shares, respectively

³ Class B-1 common stock, $0.001 par value: Authorized - 75.0 million shares;
        Issued and outstanding - 37.8 million shares

⁴ Class B-2 common stock, $0.000001 par value: Authorized - 75.0 million shares;
        Issued and outstanding - 37.8 million shares

⁵ Preferred stock, $0.001 par value: Authorized - 25.0 million shares;
        Issued and outstanding - none

PETCO HEALTH AND WELLNESS COMPANY, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited and subject to reclassification)

13 Weeks Ended

May 2,
2026

May 3,
2025

Cash flows from operating activities:

Net loss

$        (15,146)

$        (11,661)

Adjustments to reconcile net loss to net cash used in
  operating activities:

Depreciation and amortization

49,041

49,811

Amortization of debt discounts and issuance costs

1,337

1,246

Provision for deferred taxes

288

(9,218)

Equity-based compensation

9,451

9,420

Loss on extinguishment and modification of debt

11,840

—

Income from equity method investees

(5,555)

(4,610)

Amounts reclassified out of accumulated other comprehensive loss

51

(212)

Non-cash operating lease costs

103,080

102,132

Changes in assets and liabilities:

     Receivables

8,884

4,229

     Merchandise inventories

(42,702)

7,857

     Prepaid expenses and other assets

(8,299)

(1,673)

     Accounts payable and book overdrafts

30,577

(19,028)

     Accrued salaries and employee benefits

(46,362)

(51,130)

     Accrued expenses and other liabilities

11,559

12,426

     Operating lease liabilities

(139,677)

(103,780)

     Other long-term liabilities

664

(1,263)

          Net cash used in operating activities

(30,969)

(15,454)

Cash flows from investing activities:

Cash paid for fixed assets

(38,153)

(28,412)

Insurance recoveries

230

—

Proceeds from sale of assets

—

1,279

Cash received from partial surrender of officers' life insurance

74

—

          Net cash used in investing activities

(37,849)

(27,133)

Cash flows from financing activities:

Borrowings under long-term debt agreements

1,500,000

—

Repayments of long-term debt

(1,500,000)

—

Debt refinancing costs and original issue discount

(28,442)

—

Payments for finance lease liabilities

(1,110)

(1,143)

Proceeds from employee stock purchase plan and stock option exercises

1,008

967

Tax withholdings on stock-based awards

(4,094)

(158)

          Net cash used in financing activities

(32,638)

(334)

Net decrease in cash, cash equivalents and restricted cash

(101,456)

(42,921)

Cash, cash equivalents and restricted cash at beginning of period

269,412

181,665

Cash, cash equivalents and restricted cash at end of period

$       167,956

$       138,744

NON-GAAP FINANCIAL MEASURES

The following information provides definitions and reconciliations of the non-GAAP financial measures presented in this earnings release to the most directly comparable financial measures calculated and presented in accordance with generally accepted accounting principles (GAAP). The company has provided this non-GAAP financial information, which is not calculated or presented in accordance with GAAP, as information supplemental and in addition to the financial measures presented in this earnings release that are calculated and presented in accordance with GAAP. Such non-GAAP financial measures should not be considered superior to, as a substitute for or alternative to, and should be considered in conjunction with, the GAAP financial measures presented in this earnings release. The non-GAAP financial measures in this earnings release may differ from similarly titled measures used by other companies.

Adjusted EBITDA

Adjusted EBITDA is considered a non-GAAP financial measure under the Securities and Exchange Commission's (SEC) rules because it excludes certain amounts included in net income calculated in accordance with GAAP. Management believes that Adjusted EBITDA is a meaningful measure to share with investors because it facilitates comparison of the current period performance with that of the comparable prior period. In addition, Adjusted EBITDA affords investors a view of what management considers to be Petco's core operating performance as well as the ability to make a more informed assessment of such operating performance as compared with that of the prior period. Please see the company's Annual Report on Form 10-K for the fiscal year ended January 31, 2026 filed with the SEC on March 13, 2026 for additional information on Adjusted EBITDA.

The table below reflects the calculation of Adjusted EBITDA for the thirteen weeks ended May 2, 2026 compared to the thirteen weeks ended May 3, 2025.

(dollars in thousands)

13 Weeks Ended

Reconciliation of Net Loss Attributable to Class A and B-1
   Common Stockholders to Adjusted EBITDA

May 2,
2026

May 3,
2025

Net loss attributable to Class A and B-1 common stockholders

$       (15,146)

$       (11,661)

Add (deduct):

Interest expense, net

31,288

32,135

Income tax expense

2,199

495

Depreciation and amortization

49,041

49,811

Income from equity method investees

(5,555)

(4,610)

Loss on extinguishment and modification of debt

11,840

—

Equity-based compensation

9,451

9,420

Mexico joint venture EBITDA (1)

12,916

10,198

Other costs (2)

1,297

3,661

Adjusted EBITDA

$         97,331

$         89,449

Net sales

$    1,496,732

$    1,493,399

Net margin (3)

(1.0 %)

(0.8 %)

Adjusted EBITDA Margin

6.5 %

6.0 %

(1)

Mexico joint venture EBITDA represents 50 percent of the entity's operating results for all periods, as adjusted to reflect the results on a basis comparable to Adjusted EBITDA. In the financial statements, this joint venture is accounted for as an equity method investment and reported net of depreciation and income taxes because such a presentation would not reflect the adjustments made in the calculation of Adjusted EBITDA, we include the 50 percent interest in the company's Mexico joint venture on an Adjusted EBITDA basis to ensure consistency. The table below presents a reconciliation of Mexico joint venture net income to Mexico joint venture EBITDA.

13 Weeks Ended

(in thousands)

May 2,
2026

May 3,
2025

Net income

$         11,104

$            9,220

Depreciation

8,306

6,597

Income tax expense

5,194

4,166

Foreign currency loss (gain) 

144

(292)

Interest expense, net

1,083

704

EBITDA

$         25,831

$         20,395

50% of EBITDA

$         12,916

$         10,198

(2)

Other costs include, as incurred: restructuring costs and restructuring-related severance costs; legal reserves associated with significant, non-ordinary course legal or regulatory matters; and costs related to certain significant strategic transactions.

(3)

We define net margin as net loss attributable to Class A and B-1 common stockholders divided by net sales and Adjusted EBITDA margin as Adjusted EBITDA divided by net sales.

Free Cash Flow

Free Cash Flow is a non-GAAP financial measure that is calculated as net cash provided by operating activities less cash paid for fixed assets. Management believes that Free Cash Flow, which measures the ability to generate additional cash from business operations, is an important financial measure for use in evaluating the company's financial performance.

The table below reflects the calculation of Free Cash Flow for the thirteen weeks ended May 2, 2026 compared to the thirteen weeks ended May 3, 2025.

(in thousands)

13 Weeks Ended

May 2,
2026

May 3,
2025

Net cash used in operating activities

$      (30,969)

$      (15,454)

Cash paid for fixed assets

(38,153)

(28,412)

Free Cash Flow

$      (69,122)

$      (43,866)

Net Debt 

The table below reflects the calculation for net debt as of May 2, 2026 compared to January 31, 2026 and May 3, 2025.

(dollars in thousands)

May 2,
2026

January 31,
2026

May 3,
2025

Total debt:

Senior secured credit facilities, net, including current portion

$            883,116

$         1,488,527

$         1,579,338

Senior notes, net

590,146

—

—

Finance leases, including current portion

8,886

9,683

13,203

Total debt

1,482,148

1,498,210

1,592,541

Less: cash and cash equivalents

(166,804)

(256,736)

(133,343)

Net Debt

$         1,315,344

$         1,241,474

$         1,459,198

SOURCE Petco - Investor Relations

The Squeeze is on for Petco Stock, Buy it When the Dust SettlesPetco Health and Wellness NASDAQ: WOOF reported a return to positive comparable sales in the first quarter of fiscal 2026, with management saying early results support the company’s “Reach for the Sky” strategy focused on product improvements, services growth, store experience and omnichannel execution.

Chief Executive Officer Joel Anderson said the company’s first-quarter performance “provide[s] an encouraging early validation” of the strategy, noting that Petco delivered a positive comp for the quarter while expanding profitability and outperforming its quarterly outlook for both top-line results and adjusted EBITDA.

Get WOOF alerts:

Will This Pet Retailer's Stock Break Out of the Doghouse?“We were particularly pleased to see the improvement in our consumables business, while our differentiated services business once again delivered strong results and continues to be a growth engine for us,” Anderson said.

Comparable sales turn positive Chief Financial Officer Sabrina Simmons said net sales rose 0.2% year over year to $1.5 billion. Comparable sales increased 0.7%, marking Petco’s return to positive comp growth. Simmons said the gap between comp sales and total sales reflected store closures, including 16 net closures in 2025 and four net closures in the first quarter. Petco ended the quarter with 1,378 U.S. stores.

High Call Option Volume: 3 Stocks to Keep on Your RadarGross profit was $574.4 million, and gross margin expanded 21 basis points to 38.4%. Selling, general and administrative expenses were $549.8 million, or 36.7% of net sales, improving by $3.8 million from a year earlier. Simmons said the expense improvement was driven by declines in general and administrative costs despite marketing investments tied to omnichannel initiatives.

Operating profit rose 50.5% year over year to $24.6 million, while adjusted EBITDA increased 8.8% to $97.3 million.

On the balance sheet, ending inventory declined 1.9% year over year, following a 5.2% decline in the prior year. Petco ended the quarter with $167 million in cash, up about $33 million from the prior-year quarter. Free cash flow was an outflow of $69 million, which Simmons said reflected seasonality, higher capital expenditures and planned inventory investments to support growth.

Total liquidity was $654.4 million, while total debt was $1.48 billion, down more than $100 million from the year-ago period. Simmons said the company remains focused on reducing its leverage ratio to two times.

Product strategy emphasizes cat, fresh food and newness Anderson said Petco is in the early stages of evolving its product mix but is already seeing evidence that new merchandise is resonating with customers. He highlighted outperformance in the cat category, saying Petco had anticipated increased demand and invested to position itself as a destination for cat owners.

Cat-related product additions are expected to expand in the second quarter, including furniture, beds, bowls and novelty items such as cat trees. Anderson also said Petco continues to lead in fresh and frozen pet food, adding incremental freezer capacity during the quarter to support momentum in the category.

“We have positioned Petco as a premier destination for pet nutrition, which we believe will serve us well as the pet humanization trend continues to pick up speed,” Anderson said.

Petco also saw strength in seasonal categories. Anderson said flea and tick had its strongest start to the season in five years, partly helped by weather patterns, and cited the company’s ability to capture sales across over-the-counter products, veterinary services and grooming packages. The company’s “Gardening with Your Pet” launch also performed above expectations, with live house plants performing well.

Looking ahead, Anderson said Petco is leaning into customer trends such as high-protein diets, new treats for dogs and cats, and supplements for areas including hip and joint care, liver health and holistic care. The company also relaunched its Well & Good grooming private-label brand with new formulas and packaging.

Services remain a growth engine Management emphasized Petco’s services business as a key differentiator, including veterinary hospitals, clinics, grooming and training. Anderson said grooming remains a “strong annuity business” and noted the company expanded care reminders into its app late in the first quarter to encourage repeat visits.

Petco also introduced a puppy-dog grooming package in the first quarter and plans to offer it throughout the year. In the second quarter, the company is rolling out Well & Good grooming products and a Disney Stitch grooming package.

On the veterinary side, Anderson said Petco is seeing improving productivity across its hospital footprint and remains on track to optimize about 25 significantly underutilized hospitals this year. The company expects to resume veterinary hospital expansion in 2027.

Anderson said “doctor days,” a measure combining additional veterinarian hiring and more hours per doctor, continue to improve. He also described cross-selling between clinics and stores as a major opportunity, citing strong performance in veterinary diet products during the quarter.

Omnichannel and loyalty initiatives advance Anderson said Petco improved digital traffic by reducing friction in the online checkout process. Omnichannel sales grew despite lapping what management described as unprofitable sales from the prior year. Buy online, pick up in store, or BOPUS, was up strongly year over year.

The company also plans to relaunch its loyalty program later in the quarter under the name Petco Perks. Anderson said the pilot showed that simplifying the program and making it more customer-friendly had a significant impact. The program will include personalized offers based on factors such as shopping frequency and customer lifetime value.

In stores, Anderson said Petco is working to build basket size through cross-selling and customer engagement. As an example, groomers are being given access to customer data, such as food purchase history, to support more personalized recommendations.

Full-year outlook reaffirmed Petco reaffirmed its fiscal 2026 outlook, expecting net sales to be flat to up 1.5% from last year and adjusted EBITDA of $415 million to $430 million. For the second quarter, Simmons said the company is comfortable with current consensus estimates for net sales, implying growth of about 0.3%, and expects adjusted EBITDA of $110 million to $112 million.

Simmons said Petco now expects fuel prices to remain near current levels for the rest of the year, while its outlook includes the benefit of a tariff refund received in May. She said the refund represents only a portion of IEEPA tariffs paid through February 2026 and that guidance assumes no additional tariff refunds beyond those received to date.

During the question-and-answer session, Anderson said Petco saw sequential improvement across consumables, supplies and companion animals, and services. He said market share declines had moderated significantly, though the company had not yet begun gaining market share.

Asked about consumer behavior, Anderson said Petco did not see material differences across income demographics or notable changes in customer behavior during the quarter. Simmons added that Petco does not plan pricing changes in reaction to any single event, saying the company continuously reviews pricing with a “customer first” lens.

“The Q1 served as an initial proof point of our inflection to growth,” Anderson said. “While the broader macro environment remains dynamic, we remain hyper-focused on controlling what we can control.”

About Petco Health and Wellness NASDAQ: WOOFPetco Health and Wellness Company, Inc NASDAQ: WOOF is a leading U.S. pet specialty retailer focused on delivering products, services and solutions that improve the health and well-being of pets. The company operates a network of retail locations that provide high-quality pet food, supplies and accessories, along with a growing digital platform that supports online ordering, subscription delivery and telehealth consultations for pets.

In addition to its retail offerings, Petco has built a full suite of in-store and virtual services, including grooming, training, dog daycare and veterinary care.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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Petco Health and Wellness Company, Inc. (WOOF) Q1 2026 Earnings Call Transcript

Petco stock is feeling bearish pressure. Why is WOOF stock dropping? Q1 HighlightsPetco reported a loss of 5 cents per share, missing the consensus estimate of a 1 cent-loss. Meanwhile, it reported revenue of $1.49 billion, beating the consensus estimate of $1.48 billion.

Petco said ending cash balance increased by $33.5 million year-over-year to $166.8 million. Inventory declined 1.9% from the prior-year period, while total debt decreased to $1.482 billion from $1.593 billion a year earlier.

Cash used in operating activities was $31 million, compared to $15.5 million in the year-ago quarter. Free cash flow was an outflow of $69.1 million versus an outflow of $43.9 million last year.

"Our strong first-quarter results, highlighted by positive comparable sales and profitability that exceeded our outlook, provide clear, early validation that our Phase 3 ‘Reach for the Sky' strategy is working," said Joel Anderson, CEO of Petco.

CFO Sabrina Simmons said the company’s first-quarter results marked a return to positive comparable sales growth and that Petco remains focused on strengthening its retail and financial fundamentals while reducing its leverage ratio to 2x.

GuidancePetco affirmed its fiscal-year 2026 revenue guidance of $5.96 billion to $6.05 billion, versus the consensus estimate of $6.00 billion. The company sees second-quarter revenue of $1.493 billion, versus the consensus estimate of $1.496 billion.

Long-Term Trend Remains BearishAt $2.71, Petco is back under its short- and intermediate-term trend lines, trading 2.6% below the 20-day SMA ($2.73), 4.9% below the 50-day SMA ($2.80), and 12.4% below the 200-day SMA ($3.04). That positioning matters because rallies have had trouble sticking while price remains below the 200-day, and the longer-term "death cross" (50-day SMA below the 200-day SMA) that formed in December 2025 still frames the bigger picture as bearish.

Momentum is the more interesting part of the setup right now: MACD is above its signal line and the histogram is positive, which points to improving momentum versus the prior downswing even if the trend hasn't fully flipped. In plain English, MACD being above the signal line suggests selling pressure is easing, but bulls still need price to reclaim key moving averages to confirm a more durable turn.

The stock is also sitting in the lower half of its 52-week range ($2.24 to $4.50), with the most recent swing low in May and a swing high in March acting as the most relevant reference points for where supply and demand have recently shown up. If the premarket weakness holds into regular trading, traders will be watching whether this pullback becomes another "lower high" sequence or a base-building attempt.

Key Resistance: $2.80 — lines up with the 50-day SMA and a level the stock needs to reclaim to improve the near-term trend Key Support: $2.24 — the 52-week low zone and the clearest downside reference if selling accelerates Petco Shares SlideWOOF Price Action: At the time of publication, Petco shares are trading 16.72% lower at $2.54, according to data from Benzinga Pro.

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Interactive Brokers (Nasdaq: IBKR), an automated global broker, today announced agentic trading through direct integration with Claude, one of the world's leading AI platforms. Available through the AI platform’s certified connector marketplace, the integration lets clients manage their accounts and access more than 170 global markets.

"Interactive Brokers has used technology for over four decades to help investors make more informed decisions and interact more efficiently with markets," said Milan Galik, Chief Executive Officer of Interactive Brokers. "Investors are increasingly using artificial intelligence to research markets, analyze information and generate ideas. We believe the next logical step is to allow clients to securely connect AI tools directly to their brokerage accounts — whether they want a simple conversational interface, deeper portfolio analysis or the ability to develop and execute sophisticated trading strategies.”

Clients can link their existing IBKR account through the Claude certified connector marketplace in just a few minutes using their IBKR login. Setup is simple: there are no additional costs, and no need to open and fund a separate brokerage account. The integration draws on the same APIs that many active IBKR users have built their own trading processes on. All of the API functionality can now be accessed by AI chatbots and agents, including positions, open orders, trade history, margin information, and market data. IBKR has chosen enterprise-level integration, where no API keys or passwords are shared with the AI provider and no authentication credentials are stored on the client’s computer— an approach designed to be more secure than alternative setups.

Clients can ask the AI questions about their portfolio or about the markets in natural language and receive analysis grounded in their own account data. They can also generate trade instructions tied to that analysis. In accordance with the human-in-the-middle system design, instructions appear in a dedicated AI Instructions tab on the Orders and Trades page across all IBKR platforms, where the client can view the instructions and approve their submissions as orders into the marketplace.

At launch, the integration generates instructions for equities and ETFs and supports market and limit orders, with additional asset classes to follow within a week. The Claude integration is live now. The ChatGPT, Gemini and Grok integrations are currently undergoing the certification process with their respective platforms and are expected to be available to IBKR clients soon.

What Clients Can Ask

A few examples of the kinds of questions the integration handles at launch:

What percentage of my portfolio is in technology stocks?

Which of my positions has the highest unrealized gain, and which has the highest unrealized loss?

My tech exposure is 18% of my portfolio. What would it take to bring it down to a 10% target weight, and what would the dollar amount be to reduce it?

I'm underweight in healthcare. What would it take to bring the sector up to 15% of my portfolio?

IBKR's Full Suite of AI Tools

The Claude integration complements IBKR's existing AI-powered tools, available directly within IBKR's platforms:

AI Screeners: Use natural language to describe what you are looking for – like "small-cap tech stocks with strong cash flow” – and get a ranked list of matches from more than 70,000 global stocks.

Investment Themes: Search for a theme such as "clean energy" or "cloud computing" and view connected companies, industries, and trends.

Connections: Enter any stock and discover the related companies, sector ETFs, derivatives, thematic data, and event contracts all in one view.

Ask IBKR: Use natural language to ask questions about your portfolio – like “How concentrated am I in tech?” – and get answers grounded in your own account data.

AI News Summaries: Get concise recaps of market news filtered to the stocks and sectors in your portfolio and watch lists – so the news most relevant to your investments is always easy to find, with important articles flagged automatically.

For more information on IBKR’s AI Integration, visit:

US and countries served by IB LLC: [url="]AI Integration [/url]
Canada: [url="]AI Integration [/url]
United Kingdom: [url="]AI Integration [/url]
Europe: [url="]AI Integration [/url]
Hong Kong: [url="]AI Integration [/url]
Singapore: [url="]AI Integration [/url]
Australia: AI Integration

To provide feedback on IBKR's platforms, tools, and services, use: [email protected]

The best-informed investors choose Interactive Brokers.

About Interactive Brokers Group, Inc.:

Interactive Brokers Group, Inc. (NASDAQ: IBKR) is a member of the S&P 500. Its affiliates provide automated trade execution and custody of securities, commodities, foreign exchange, and prediction markets around the clock on over 170 markets in numerous countries and currencies from a single unified platform to clients worldwide. We serve individual investors, hedge funds, proprietary trading groups, financial advisors and introducing brokers. Our four decades of focus on technology and automation have enabled us to equip our clients with a uniquely sophisticated platform to manage their investment portfolios. We strive to provide our clients with advantageous execution prices and trading, risk and portfolio management tools, research facilities and investment products, all at low or no cost, positioning them to achieve superior returns on investments. Interactive Brokers has consistently earned recognition as a top broker, garnering multiple awards and accolades from respected industry sources such as Barron's, Investopedia, Stockbrokers.com, and many others.

Follow Interactive Brokers on social media: Facebook, Instagram, LinkedIn, Reddit, X (Twitter), TikTok, YouTube

View source version on businesswire.com: https://www.businesswire.com/news/home/20260601336232/en/

Interactive Brokers Group, Inc. (Nasdaq: IBKR) an automated global electronic broker, today reported its Electronic Brokerage monthly performance metrics for M

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Key Takeaways Interactive Brokers added 135,900 net new accounts in May, up 82% YoY and 30% from April.May client DARTs hit 4.969M, up 47% YoY; options contracts rose 19% to 152.7M.Client equity climbed to $937.3B; margin loans were $100.9B, up 65% YoY and 11% MoM. Amid favorable market conditions and higher trading activity, Interactive Brokers Group (IBKR - Free Report) recorded a surge in new account openings. The company’s Electronic Brokerage segment reported net new accounts of 135,900 for May. This marks a jump of 82% year over year and 30% from the last month.

Interactive Brokers’ total customer accounts at the end of May were 4.99 million, up 32% from May 2025 and 3% from April 2026.

Rising volatility across equities, options and global futures has triggered a strong wave of trading activity among both retail and institutional investors, benefiting Interactive Brokers. Uncertainty around the rate-cut path, higher Treasury yields, crude-oil swings tied to U.S.-Iran diplomacy, elevated equity valuations, AI-capex concerns and broader macro-driven positioning have supported heavier trading volumes, keeping IBKR’s active, high-frequency client base highly engaged.

In addition to increased trading activities, factors that have been driving growth in IBKR’s client base are the brokerage firm’s competitive pricing and low-fee structure, attractive margin features, continuous product innovation, streamlined onboarding and an efficient operating model.

Supported by the company’s efforts to diversify its product suite and develop proprietary software to automate broker-dealer functions, along with its solid Daily Average Revenue Trade (DART) numbers, its revenues are expected to increase. Over the last five years (2020-2025), IBKR’s total net revenues witnessed a compound annual growth rate of 22.8%, with momentum continuing in the first quarter of 2026.

Interactive Brokers’ Other Key Metrics for MayTotal client DARTs were 4,969,000, representing a 47% increase from May 2025 and 17% from April 2026. On an annualized basis, cleared average DARTs per customer account were 216. The metric rose 10% on a year-over-year basis and 14% from April 2026.

Interactive Brokers’ total options contracts were 152.7 million, up 19% year over year and 5% sequentially. Future contracts rose 3% year over year but declined 7% from the previous month to 20.4 million.

Client equity was $937.3 billion, which soared 49% year over year and 8% sequentially. IBKR recorded client credit balances of $180.1 billion, up 34% from May 2025 and 3% from April 2026. The company's customer margin loan balance of $100.9 billion surged 65% from the year-ago month and 11% from last month.

Measures by IBKR’s Peers to Expand Product OfferingsInteractive Brokers’ key competitors, Charles Schwab (SCHW - Free Report) and Robinhood Markets (HOOD - Free Report) , have been rolling out products to bolster market share.

Schwab has been broadening its platform with alternative investments, expanded 24-hour trading and planned digital-asset/private-market capabilities to deepen client engagement and attract affluent, active and younger investors. These additions strengthen Schwab’s full-service ecosystem, helping defend assets while expanding market share across brokerage, wealth and advisory channels.

Robinhood is broadening beyond commission-free trading with futures, prediction markets, AI-powered tools, crypto products, Gold subscriptions, credit card and banking offerings. This product velocity deepens engagement with active traders, attracts younger investors and expands wallet share, positioning Robinhood to gain market share across trading, wealth and broader fintech services.

IBKR’s Price Performance & Zacks RankShares of Interactive Brokers have rallied 37.9% so far this year against the industry’s decline of 1.1%.
 

Image Source: Zacks Investment Research

Currently, Interactive Brokers carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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Published in fin-tech finance

Interactive Brokers Group, Inc. (IBKR - Free Report) closed the most recent trading day at $87.15, moving -1.77% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 0.74%. On the other hand, the Dow registered a loss of 1.21%, and the technology-centric Nasdaq decreased by 0.89%.

Shares of the company have appreciated by 5.73% over the course of the past month, outperforming the Finance sector's gain of 1.17%, and the S&P 500's gain of 5.39%.

The upcoming earnings release of Interactive Brokers Group, Inc. will be of great interest to investors. On that day, Interactive Brokers Group, Inc. is projected to report earnings of $0.59 per share, which would represent year-over-year growth of 15.69%. At the same time, our most recent consensus estimate is projecting a revenue of $1.66 billion, reflecting a 12.16% rise from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $2.46 per share and a revenue of $6.9 billion, demonstrating changes of +12.33% and +12.14%, respectively, from the preceding year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Interactive Brokers Group, Inc. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Interactive Brokers Group, Inc. currently has a Zacks Rank of #2 (Buy).

Looking at its valuation, Interactive Brokers Group, Inc. is holding a Forward P/E ratio of 36.11. This denotes a premium relative to the industry average Forward P/E of 12.93.

Investors should also note that IBKR has a PEG ratio of 2.45 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Financial - Investment Bank industry currently had an average PEG ratio of 0.93 as of yesterday's close.

The Financial - Investment Bank industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 107, placing it within the top 44% of over 250 industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

Thursday marks the first day that the Pattern Day Trader rule no longer applies to accounts under $25,000 — the most significant change to retail trading access in a generation, and a potential windfall for three publicly traded brokerages.

HOOD stock is climbing. See the chart and price action here.  PDT Rule Eliminated The U.S. Securities and Exchange Commission (SEC) approved FINRA’s elimination of the PDT designation and its $25,000 minimum equity requirement on April 14, with the new intraday risk-based margin framework taking effect Thursday, June 4. 

For 25 years, any margin account holder who executed four or more day trades in a rolling five-business-day period was flagged as a pattern day trader and locked out unless they maintained a $25,000 floor. That rule is now gone.

Robinhood Markets, Inc. (NASDAQ:HOOD) came into the day with more fanfare than any broker. 

The company posted a countdown clock on X, and its official account announced: “June 4: The PDT rule will be eliminated, and the $25,000 minimum account balance requirement will officially end. We will be wiping all past PDT flags clean. Soon, customers will be able to trade on Robinhood without worrying about day trading limits again.” 

Robinhood followed-up with a celebratory X post Thursday morning that read: "Robinhood has lifted PDT restrictions. No more $25K minimum, no more flags. Happy trading." 

Robinhood boasts 27.4 million funded customers and $623 million in Q1 transaction-based revenue — plus a $17 billion margin book. Its core user base of small-account active traders is exactly who this rule change was built for.

The company, at last check, is trading at $85.35 and up 3% with a market cap of $77.2 billion.

Webull“Eliminating the $25,000 PDT threshold removes an arbitrary wealth barrier that has penalized smaller accounts for decades,” Denier said in a prior statement. 

On Webull’s Q1 earnings call, he added that he expects at least a 20% increase in transaction volume over time, and flagged a separate opportunity: account consolidation. 

“It is quite common for active smaller AUM clients to have multiple brokerage accounts,” Denier said. “The removal of the PDT and being a first mover is really significant for us to do a consolidation of a lot of those client assets.” 

Webull’s average account size is just under $5,000, meaning the majority of its user base was directly constrained by the old rule.

Interactive BrokersInteractive Brokers Group (NASDAQ:IBKR), at $84.33, is the lone decliner of the three. The stock price is down 3.24% with a $145 billion market cap.

The firm confirmed it was “ready for the removal of the $25,000 PDT requirement and corresponding intraday margin rules, and will implement the changes on June 4 for eligible securities clients.” 

Interactive Broker’s clientele skews wealthier and more institutional, meaning fewer of its users were directly blocked by the $25,000 floor.

Still, a broader surge in retail trading activity broadly benefits the firm’s volumes and margin book.

Brokerages have until October 20, 2027, to fully phase in the new intraday margin framework. Therefore, the impact will be staggered across platforms and quarters. 

But Thursday marks the start of the clock — and all three stocks are watching the same tape.

Photo: vectorfusionart / Shutterstock

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Key Takeaways COIN launched pre-IPO trading with a SpaceX Perpetual Future for eligible traders outside the U.S.COIN says tokenized private securities could widen retail access and add recurring fees beyond crypto trading.This launch reflects COIN's efforts to strategically position itself as the "everything exchange." Coinbase Global (COIN - Free Report) has announced the launch of pre-IPO trading, starting with SpaceX Perpetual Future. Apart from strategically positioning itself as the “everything exchange,” this also marks a potentially transformative expansion of COIN’s capital markets infrastructure. This launch gives eligible traders outside the United States price exposure to private companies before they go public.

Historically, investment opportunities in high-growth private companies such as SpaceX have been largely restricted to venture capital firms, institutional investors and high-net-worth individuals. By providing compliant pre-IPO access through blockchain-based infrastructure, Coinbase has the potential to open these opportunities to a much broader retail investor base, unlocking substantial untapped demand for private market participation.

From a strategic perspective, this initiative could help Coinbase diversify beyond its traditionally cyclical crypto trading business. Since digital asset trading volumes are highly dependent on market sentiment, tokenized private securities offer a new source of recurring fee revenues. If executed successfully, Coinbase could transform into a comprehensive digital brokerage platform and alternative asset marketplace.

This is just the beginning. Coinbase looks to craft a pipeline of pre-IPO perpetual futures, with more listings to come across technology, AI, energy, space and beyond. This strategic move signals Coinbase’s ambition to become foundational infrastructure for next-generation capital markets.

What About its Competitors?Robinhood Markets (HOOD - Free Report) is expanding into crypto derivatives, driving trading activity and diversifying revenues. By offering perpetual futures in Europe and micro futures for Bitcoin, Solana and XRP, Robinhood attracts active traders and improves margins. This strengthens Robinhood’s competitiveness while enhancing results beyond equities and traditional spot crypto trading.

Interactive Brokers Group’s (IBKR - Free Report) involvement in crypto derivatives boosts its platform by providing Bitcoin and Ether futures and options. Interactive Brokers appeals to both institutional and retail traders seeking regulated exposure. This expansion enables Interactive Brokers to diversify revenues, strengthen competitiveness, increase trading volumes and capture sustainable long-term growth opportunities.

COIN’s Price PerformanceShares of COIN have lost 27.4% in the year-to-date period, underperforming the industry.

Image Source: Zacks Investment Research

COIN’s Expensive ValuationCOIN trades at a price-to-earnings value ratio of 54.56, significantly above the industry average of 9.65.

Image Source: Zacks Investment Research

Estimate Movement for COINThe Zacks Consensus Estimate for COIN’s second-quarter 2026 and third-quarter 2026 earnings per share (EPS) has moved south in the last 30 days. The consensus estimate for full-year 2026 EPS has moved south but the same for 2027 has witnessed northbound movement in the last 30 days. 
 

Image Source: Zacks Investment Research

The house always wins is a saying in the casino world, but it is one that has equal importance in the finance industry. Keep that in mind as you watch the news flow leading up to huge initial public offerings (IPOs) for private companies like SpaceX, OpenAI, and Anthropic.

The only companies that are guaranteed to benefit from these IPOs are investment banking firms like Goldman Sachs (GS +2.68%) and Morgan Stanley (MS +0.90%). However, discount brokers like Interactive Brokers (IBKR +2.17%) and Robinhood (HOOD +0.87%) are likely to see a business boost, too. Here's what you need to know.

Image source: Getty Images.

What normally happens in an IPO? A company doesn't just randomly decide to hold an IPO one day. It is a long and difficult process that requires jumping over material legal and financial hurdles. Most companies, particularly large ones, that hold an IPO work with other companies to get the deal over the finish line. There's also the important task of introducing the investing community to the company before the IPO, to ensure there are buyers when the stock becomes available. Strong relationships in the finance industry are vital to that effort.

Helping companies through this process is a key part of what Morgan Stanley and Goldman Sachs do as finance businesses. Providing investment banking services, including generating underwriting fees from IPO deals, can be highly profitable for both of these giant, diversified finance companies. That said, the IPO market goes through periods of boom and bust, so the business is very lumpy.

Today's Change

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When investors are excited about the market, certain sectors, or companies, there can be a lot of IPO activity. SpaceX is an example of company-specific excitement, while OpenAI and Anthropic are both artificial intelligence stocks seeking to capitalize on the excitement around the broader AI sector today.

To go back to the gambling reference above, Morgan Stanley and Goldman Sachs are "the house" when it comes to IPOs. And, as a kicker, underwriters are often given stock during an IPO, too. That can seriously sweeten the deal for companies like Morgan Stanley and Goldman Sachs.

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An investor frenzy can be big news for brokers While investment banks help put the pieces of a successful IPO together, another group of companies can benefit from exciting IPOs: brokers. When an IPO rockets higher on its first day of trading, it is because investor demand for the shares is high. That usually shows up as elevated trading activity in the stock of a newly public company. When it comes to stock trades, "the house" is your broker. The more the public trades, the more income companies like Interactive Brokers and Robinhood generate.

Today's Change

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This is particularly important for companies like SpaceX, OpenAI, and Anthropic, as their IPOs are likely to attract small investors who haven't been able to buy during earlier rounds of funding. Investors usually hope to jump aboard a rocket ship that creates wealth quickly. To be fair, if the investment banks do their job, the stock will come public at the "correct price" and not rise or fall. However, that's usually not what happens, with investor emotions often taking over in big deals, leading to dramatic price moves. Those price moves draw in more investors, creating a feeding frenzy. And the brokers benefit from each and every trade.

Maybe skip the IPOs and buy the "house"? Obviously, Goldman Sachs, Morgan Stanley, Interactive Brokers, and Robinhood are nothing like SpaceX, OpenAI, or Anthropic. If you are interested in these IPOs, you won't be happy buying the financial companies that help IPOs happen. However, Goldman Sachs, Morgan Stanley, Interactive Brokers, and Robinhood are likely to benefit from these IPOs regardless of what happens to the newly traded stocks. And that might actually make these financial companies more attractive to some investors.

Interactive Brokers (Nasdaq: IBKR), an automated global broker, today announced the launch of Commission-Free ETFs within its Recurring Investment feature for eligible individual investors across the European Economic Area. Investors can now access more than 500 commission-free iShares ETFs from BlackRock spanning a broad range of asset classes and strategies, including bonds, equities, themes and sectors.

The iShares ETFs available on the IBKR platform give individual investors an accessible, cost-efficient way to build well-diversified portfolios. Since investors pay no trading commissions, more of their capital stays invested and compounding over time, while a broad selection of funds across asset classes makes it straightforward to construct and rebalance portfolios.

iShares ETFs are available commission-free through IBKR's Recurring Investments feature, allowing investors to automate their periodic ETF contributions. Clients can select individual ETFs or ETF portfolios, set a contribution amount and a regular schedule, and invest in a wide range of iShares UCITS ETFs starting from just €10, without paying trading commissions. This gives investors the flexibility to manage their own recurring ETF investing independently, with full control over how and when they invest.

Kevin Keller, Chief Executive Officer of Interactive Brokers Ireland Limited, commented:

"Investors should be able to build diversified, long-term portfolios without paying to do it. By offering commission-free iShares ETFs alongside our full range of global markets on a single platform, we're giving European investors a cost-efficient way to put more of their money to work and keep it invested over time."

Christian Bimueller, Head of Digital Distribution Continental Europe at BlackRock, added:

“Interactive Brokers’ latest offering reflects a clear trend across Europe, with more individual investors turning to ETFs for their simplicity, diversification and low cost. When used within recurring investment plans, where people invest a fixed amount regularly, ETFs are changing how people invest, making it easier to get started, build a habit over time and take the pressure out of trying to time the market. Together, they are bringing investing within reach for many more people, helping individuals take that first step and stay invested over time. BlackRock has been part of this shift for many years, helping to make investing simpler and more widely available to millions more people looking to grow their money and take control of their financial future.”

According to BlackRock’s People & Money 2025 study, ETFs are growing at an annualised rate of 19% since 2022 and are now the third most-owned investment vehicle in Europe, reflecting the accelerating shift toward low-cost, transparent investing among individual investors.

Availability of products varies by Interactive Brokers affiliate and client country of residence.

For additional information, please visit: Commission-Free ETFs

The best-informed investors choose Interactive Brokers

About Interactive Brokers Group, Inc.:

Interactive Brokers Group, Inc. (NASDAQ: IBKR) is a member of the S&P 500. Its affiliates provide automated trade execution and custody of securities, commodities, foreign exchange, and prediction markets around the clock on over 170 markets in numerous countries and currencies from a single unified platform to clients worldwide. We serve individual investors, hedge funds, proprietary trading groups, financial advisors and introducing brokers. Our four decades of focus on technology and automation have enabled us to equip our clients with a uniquely sophisticated platform to manage their investment portfolios. We strive to provide our clients with advantageous execution prices and trading, risk and portfolio management tools, research facilities and investment products, all at low or no cost, positioning them to achieve superior returns on investments. Interactive Brokers has consistently earned recognition as a top broker, garnering multiple awards and accolades from respected industry sources such as Barron's, Investopedia, Stockbrokers.com, and many others.

Follow Interactive Brokers on social media: Facebook, Instagram, LinkedIn, Reddit, X (Twitter), TikTok, YouTube

About BlackRock

BlackRock’s purpose is to help more and more people experience financial well-being. As a fiduciary to investors and a leading provider of financial technology, we help millions of people build savings that serve them throughout their lives by making investing easier and more affordable. For additional information on BlackRock, please visit www.blackrock.com/corporate

About iShares

iShares unlocks opportunity across markets to meet the evolving needs of investors. With more than twenty years of experience, a global line-up of more than 1,700 exchange traded funds (ETFs) and approximately $5.5 trillion in assets under management as of March 31, 2026, iShares continues to drive progress for the financial industry. iShares funds are powered by the expert portfolio and risk management of BlackRock.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260609598644/en/

Interactive Brokers Group, Inc. (IBKR - Free Report) closed at $86.33 in the latest trading session, marking a -1.17% move from the prior day. The stock trailed the S&P 500, which registered a daily loss of 0.26%. Elsewhere, the Dow saw an upswing of 0.17%, while the tech-heavy Nasdaq depreciated by 0.97%.

Shares of the company witnessed a gain of 2.87% over the previous month, beating the performance of the Finance sector with its gain of 0.29%, and the S&P 500's gain of 0.23%.

Market participants will be closely following the financial results of Interactive Brokers Group, Inc. in its upcoming release. The company's earnings per share (EPS) are projected to be $0.59, reflecting a 15.69% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.66 billion, up 12.16% from the year-ago period.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.46 per share and revenue of $6.9 billion, indicating changes of +12.33% and +12.14%, respectively, compared to the previous year.

Any recent changes to analyst estimates for Interactive Brokers Group, Inc. should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Interactive Brokers Group, Inc. presently features a Zacks Rank of #2 (Buy).

In terms of valuation, Interactive Brokers Group, Inc. is currently trading at a Forward P/E ratio of 35.56. This expresses a premium compared to the average Forward P/E of 13.89 of its industry.

It is also worth noting that IBKR currently has a PEG ratio of 2.41. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. By the end of yesterday's trading, the Financial - Investment Bank industry had an average PEG ratio of 1.05.

The Financial - Investment Bank industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 98, which puts it in the top 41% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.