Petco Rises After Boosting Full-Year Adj. Ebitda Guidance

Petco Health & Wellness Co. climbed after raising its full-year earnings guidance, signaling progress in its turnaround.

The San Diego-based company said adjusted earnings before interest, tax, amortization and depreciation are expected to be $395 million to $397 million this year, up from its previous view for as much as $395 million.

“Rebuilding the base of our economic model has been a priority in 2025,” Chief Executive Officer Joel Anderson said in a statement Tuesday. “This strengthened base sets the foundation for a return to growth during fiscal 2026.”

Shares rose 9.1% in after-hours trading as of 4:38 pm New York time. Petco had fallen 22% this year through Tuesday.

Since joining the company in July 2024, Anderson has introduced new executives across almost every area of the business, including finance, technology, marketing, and merchandising. His focus has been on revitalizing stores and shutting down locations that are performing poorly.

Petco reported that adjusted Ebitda rose to $98.6 million in the third quarter, beating expectations. It expects adjusted Ebitda for the fourth quarter to be around $93 million to $95 million, compares to the $92.4 million estimated by analysts.

The company continues to see annual capital expenditures of $125 million to $130 million.