Revenue: As of FY2026 Q2, the actual value is USD 906.15 M, beating the estimate of USD 845.15 M.EPS: As of FY2026 Q2, the actual value is USD 1.28, beating the estimate of USD 1.0899.EBIT: As of FY2026 Q2, the actual value is USD 123.02 M.<h4>Overall Financial Results (Q2 FY 2026 vs Q2 FY 2025)</h4><ul><li>Gross margin expanded by 30 basis points to 33.1%, compared with 32.8%.</li><li>Operating income totaled $114 million, compared with $93 million.</li><li>Operating margin was 12.6%, compared with 11.2%.</li><li>Other expense was - $0.351 million, compared with other income of $0.744 million.</li><li>Net interest expense of $9 million was consistent with the prior year.</li><li>Net income was $79 million, compared with $64 million.</li><li>Adjusted EBITDA was $139 million, compared with $123 million.</li><li>Adjusted EBITDA margin was 15.4%, compared with 14.8%.</li></ul><h4>Pet Segment Results (Q2 FY 2026 vs Q2 FY 2025)</h4><ul><li>Net sales in the Pet segment were $477 million, compared with $454 million, primarily driven by continued strength in Dog &amp; Cat and Animal Health, as well as Outdoor Cushions shipments shifting from the first quarter into the second.</li><li>Operating income was $78 million, compared with $61 million.</li><li>Operating margin was 16.3%, compared with 13.4%.</li><li>Adjusted EBITDA was $89 million, compared with $75 million.</li><li>Adjusted EBITDA margin was 18.6%, compared with 16.6%.</li></ul><h4>Garden Segment Results (Q2 FY 2026 vs Q2 FY 2025)</h4><ul><li>Net sales in the Garden segment were $429 million, compared with $380 million, primarily driven by shipments shifting from the first quarter into the second, and new listings in Grass and Fertilizer.</li><li>Operating income was $66 million, compared with $59 million.</li><li>Operating margin was 15.4%, compared with 15.5%.</li><li>Adjusted EBITDA was $76 million, compared with $69 million.</li><li>Adjusted EBITDA margin was 17.7%, compared with 18.2%.</li></ul><h4>Liquidity and Debt (Q2 FY 2026 vs Q2 FY 2025)</h4><ul><li>Cash used in operations was $50 million, compared with $47 million, primarily reflecting seasonal working capital timing.</li><li>Central Garden &amp; Pet Company repurchased 110 thousand shares for $3.4 million during the quarter.</li><li>As of March 28, 2026, $128 million remained available for future stock repurchases.</li><li>Cash and cash equivalents at March 28, 2026, totaled $653 million, compared with $517 million.</li><li>Total debt was $1.2 billion, consistent with the prior year period, with strong liquidity supporting continued investment capacity and financial flexibility.</li><li>Gross leverage ended the second quarter at 2.8x, compared with 2.9x in the prior year and below the target range of 3.0 to 3.5x.</li><li>Central Garden &amp; Pet Company had no borrowings outstanding under its credit facility at quarter end.</li></ul><h4>Outlook / Guidance</h4>Central Garden &amp; Pet Company reaffirms its fiscal 2026 outlook for non-GAAP diluted EPS of $2.70 or better, driven by continued margin discipline, ongoing investment in growth initiatives, and portfolio optimization. The company does not expect its pet distribution partnership to have a significant impact on EPS. Capital expenditures are projected to be approximately $50 million to $60 million, focused on maintenance, productivity initiatives, and targeted growth investments across both segments.

Central Garden & Pet | 8-K: FY2026 Q2 Revenue Beats Estimate at USD 906.15 M