Key Highlights
- Chewy delivered Q4 adjusted EPS of $0.27, crushing Wall Street’s $0.09 estimate by a significant $0.18 margin
- Quarterly revenue reached $3.26 billion, representing an 8.1% increase on a normalized 13-week comparison
- The company’s active customer base expanded 4% to reach 21.3 million, while average spending per customer increased 2.2% to $591
- Fiscal 2025 adjusted EBITDA climbed to $719.2 million, marking a 26% gain, alongside a record $562 million in free cash flow
- Management’s 2026 sales outlook of $13.6B–$13.75B exceeds the Street’s $13.58B projection
Shares of Chewy (CHWY) jumped significantly on Wednesday morning, surging as high as 11.3% during premarket trading following the online pet retailer’s impressive fourth-quarter performance and upbeat annual guidance that topped analyst forecasts. Early trading showed the stock at $24.98, reflecting approximately 6.5% gains in premarket activity.
Chewy shares are trading higher after a strong Q4 earnings beat.$CHWY reported adj EPS of $0.27 versus $0.09 expected, while revenue came in at $3.26 billion, in line with estimates.
Gross margin rose 90 bps to 29.4%, and adjusted EBITDA margin improved to 5.0%. pic.twitter.com/1HdeRm06hB
— Wall St Engine (@wallstengine) March 25, 2026
The company disclosed adjusted earnings of $0.27 per share for the quarter that concluded on February 1. This figure substantially exceeded the Street’s consensus estimate of $0.09 by $0.18 — representing a decisive earnings triumph.
Quarterly sales totaled $3.26 billion. While this represents a modest 0.5% uptick on a reported year-over-year basis, the comparison faces distortion due to the previous year’s quarter containing 14 weeks compared to 13 weeks in the current period. Adjusting for the calendar difference, revenue climbed a robust 8.1%.
The period also demonstrated meaningful profitability improvements. Gross margin widened by 90 basis points to reach 29.4%, while adjusted EBITDA margin expanded 120 basis points to 5.0%. Quarterly adjusted EBITDA totaled $162.3 million, climbing $37.8 million versus the comparable year-earlier period.
Net profit for the quarter registered at $39.2 million, translating to 9 cents per diluted share. This compares favorably to $22.8 million, or 5 cents per share, in the prior-year quarter — effectively doubling bottom-line earnings.
Annual Performance Breakdown
For the complete fiscal 2025 year, Chewy generated net sales of $12.60 billion — reflecting an 8.3% increase on a normalized 52-week comparison. Adjusted EBITDA surged to $719.2 million, representing a $148.7 million year-over-year improvement, with margin expansion of 90 basis points to 5.7%.
Free cash flow achieved a company record of $562 million for the year. This milestone performance typically resonates strongly with the investment community.
The active customer count grew 4% to 21.3 million in Q4. Meanwhile, net sales per active customer increased 2.2% to $591, demonstrating consistent purchasing patterns from the company’s existing clientele.
Chief Executive Sumit Singh characterized the full-year results as originating from “a position of real strength,” highlighting sales momentum, EBITDA growth, and record cash generation.
“That performance underscores the durability of the Chewy model,” Singh stated, expressing confidence in the company’s ability to deliver “continued profitable growth, expanding margins, and strong cash generation in 2026 and beyond.”
Forward-Looking 2026 Projections Beat Consensus
Looking ahead to fiscal 2026, Chewy provided full-year net sales guidance ranging from $13.6 billion to $13.75 billion. Wall Street analysts had been anticipating $13.58 billion, positioning the midpoint of management’s outlook modestly above consensus expectations.
For the first quarter specifically, Chewy projected adjusted EPS between $0.40 and $0.45 on net sales of $3.33 billion to $3.36 billion. The analyst community had been modeling $0.41 per share on $3.36 billion in sales.
While the Q1 revenue guidance midpoint trails consensus slightly, the earnings per share projection aligns closely with Street estimates.
Full-year adjusted EBITDA for fiscal 2025 reached $719.2 million — up 26% year-over-year — complemented by record free cash flow of $562 million, capping an exceptionally strong fiscal year for the pet supplies retailer.
