Petco Health Soars 10.25% on Q4 Earnings Beat

On March 27, 2025, Petco Health's stock rose 10.25% in pre-market trading, reflecting a positive market sentiment ahead of the official trading session.

Petco Health and Wellness Co. reported its fourth-quarter financial results, which showed a mixed performance. The company's Q4 sales reached $1.60 billion, surpassing analysts' estimates of $1.56 billion. However, this figure represented a 7.3% year-over-year decrease, partly due to challenging market conditions.

Despite the decline in sales, Petco's stock experienced significant gains in after-hours trading, jumping nearly 10% following the release of its Q4 results. This surge was driven by the company's ability to exceed revenue expectations, which boosted investor confidence.

In addition to its financial performance, Petco's stock received a positive outlook from Citi analyst Steven Zaccone, who raised the price target for the company to $3.00. This adjustment was based on Petco's focus on cost savings and operational efficiency, which are expected to drive future growth.