C...besides peach leaf curl....brown rot is a major problem with peaches. It can cause sap flow....usually on the trunk. Peaches must constantly be sprayed in damp areas (winter) with anti-fungal sprays such as lime and copper. This sap flow is common, and I would not panic. Just resume a good dormant spray routine next December/Jan.

No, what Rhizo said was that it MAY not be able to survive to the next spring, but that until it actually dies, no-one can say for sure. IF the tree was totally girdled, BUT the sapwood survived, and IF the tree is able to grow over the chewed up area sufficiently that the sap can make it down to the roots, then the tree will probably live. IF the tree was too badly damaged, then it will ptobably die. If you can get either your county's extension agent or a certified arborist to come look at it, you might get a more definitive opinion, since they can see the damage. MAYBE, if you can post several photos of the damage, a more informed opinion can be given here, but maybe not as well. Seeing the sapwood, and the true extent of the damage can help, but trees, as with all natural things, vary so much in what they can and cannot survive - some make it through an injury and thrive, while another gets what looks like the same damage, and dies from it. There are some things that are clear-cut and others that are ambiguous. This seems to be one of the ambiguous ones.

Here is full image. Last year my new guava tree started drying out from top branches and then trunk and died later. When I took the dead trunk out, found few worms (borer?) inside. May be my peach tree is having the same problem? I am worried about those holes. I am not seeing any other damage anywhere else yet and enjoying the sweet fruits. Don't want to loose this 5 year old tree. How to fix this?

We are located in Dallas Texas. So our winters were pretty mild. The tree was here already when we moved in a year ago so I am unsure what kind of peach tree and how old it is. But my guess would be at least 4 years old and a 7 inch trunk size. We have a slightly smaller peach tree near it that is fully leaf'd. Last year, with the bigger peach tree, it had a lot of peaches but most of them mummified/curled up. Some of the bare branches do have a few leaves on them.