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Earnings analysis · 10-Q

CENTA earnings analysis

Filed May 7, 2026 · Our reading of the company's report

The latest report

Central Garden & Pet Company reported a strong Q2 2026 performance with revenue reaching $906.2 million, representing a 9% year-over-year increase, and diluted EPS of $1.28, exceeding analysts' expectations. The Pet…

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Central Garden & Pet Company reported a strong Q2 2026 performance with revenue reaching $906.2 million, representing a 9% year-over-year increase, and diluted EPS of $1.28, exceeding analysts' expectations. The Pet segment saw a 5.1% year-over-year sales increase while the Garden segment experienced a robust 13% growth. Management highlighted that their non-GAAP EPS guidance remains at $2.70 or better for fiscal 2026.

Read the original on SEC.gov

Gross and operating margin

How much of each revenue dollar the business keeps.

35% Gross margin Operating margin Aug 2024 May 2026

One point per quarterly or annual filing. Both margins are shares of that report's revenue.

From revenue to operating profit

Where each $100 of revenue went in this report.

Of every $100 of revenue Cost of sales $66 Operating expenses $21 Left as operating profit $13

Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.

How we read each report

Our analysis across the last few reports.

Read as bullish Read as bearish Nov 2023 May 2026

Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.

Reported figures

Earnings per share
$1.28
Segment
Pet
Segment
Garden

What stood out

  • Strong Revenue Surprise

    Revenue for Q2 2026 came in at $906 million, surpassing estimates by 7.4%.

  • Increased Gross Profit

    Gross profit rose by $26 million year-over-year, reaching $299 million.

  • Higher Operating Income

    Operating income increased by 22.1%, totaling $114 million for Q2 2026.

  • Diluted EPS Exceeds Estimates

    Reported EPS of $1.28 exceeded consensus expectations of $1.10.

  • Segment Performance Growth

    Pet segment revenue grew by 5.1% to $476.8 million, while Garden segment surged 13% to $429.3 million.

  • Improved Operating Margin

    Operating margin increased from 11.2% in the prior year to 12.6% for the current quarter.

What to watch

  • Economic Uncertainty

    Management notes potential risks due to fluctuating input costs influenced by inflation.

  • Impact of New Distribution Partnership

    Divesting a part of the Pet segment to form a new distribution partnership with Phillips Pet could complicate operational focus.

  • Seasonality Risks

    The Garden segment's sales are heavily dependent on seasonal demand, which could impact financial performance.

Management's outlook

Management reaffirms non-GAAP diluted EPS guidance for fiscal 2026 at $2.70 or better.

Earlier filings 4

10-Q · February 5, 2026

Central Garden & Pet reported Q1 net sales of $617,373,000, down $39,063,000 (≈-6.0%) vs. prior-year quarter, while diluted EPS fell to $0.11 from $0.21. Gross margin expanded to 30.89% (from 29.82%) but operating…

10-K · November 26, 2025

Central Garden & Pet frames a 'Central to Home' growth strategy focused on brand building, digital/eCommerce, margin improvement via a 'Cost and Simplicity' program, and disciplined M&A. The company reports an…

10-Q · August 7, 2025

Central Garden & Pet reported Q3 net sales of $960,913,000 (down $35,435,000 or 3.6% vs. prior-year quarter sales of $996,348,000) while gross profit increased to $332,010,000 and diluted EPS rose to $1.52 (from $1.19).…

10-Q · May 8, 2025

Central Garden & Pet reported Q2 net sales of $833,537 (in thousands), down from $900,090 in the prior-year quarter, while gross profit was $273,083 and diluted EPS improved to $0.98. Gross and operating margins…

This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.