Petco Health shares surge 12.46% after-hours after reporting Q3 profitability and raising annual outlook.

Petco Health and Wellness (WOOF) surged 12.46% in after-hours trading following the release of its third-quarter financial results, which highlighted a $17 million increase in adjusted EBITDA to $98.6 million and a $25 million rise in operating income to $29.2 million. Despite a 3.3% sales decline to $1.46 billion, the company raised its annual profit outlook by $6 million at the midpoint, underscoring improved profitability amid competitive pressures. The rally aligns with reports of the company’s earnings call and profitability initiatives offsetting sales challenges, as detailed in recent analyst coverage and PR updates. While some analysts trimmed price targets, the core earnings performance and revised guidance drove the sharp after-hours rebound.