Key Highlights
- Q4 adjusted earnings per share reached $0.27, surpassing analyst expectations of $0.09 by a wide margin of $0.18
- Quarterly revenue totaled $3.26 billion, reflecting an 8.1% increase on a normalized 13-week comparison
- Customer base expanded 4% to reach 21.3 million active users; average customer spending increased 2.2% to $591
- Fiscal 2025 adjusted EBITDA reached $719.2 million, representing 26% growth, while free cash flow hit an all-time high of $562 million
- Fiscal 2026 revenue guidance of $13.6B–$13.75B exceeds the $13.58B analyst consensus estimate
Shares of Chewy (CHWY) jumped significantly on Wednesday morning, surging as high as 11.3% during premarket hours following the online pet retailer’s impressive fourth-quarter results and forward-looking guidance that exceeded analyst projections. The stock traded at approximately $24.98, representing a gain of roughly 6.5% in early premarket action.
Chewy shares are trading higher after a strong Q4 earnings beat.$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 delivered adjusted earnings of $0.27 per share for its fiscal quarter ending February 1. This figure significantly exceeded Wall Street’s consensus forecast of $0.09, marking a substantial beat of $0.18 per share.
Quarterly revenue totaled $3.26 billion. While this represents just a 0.5% year-over-year increase on a reported basis, the comparison is complicated by differing quarter lengths — last year’s Q4 contained 14 weeks compared to 13 weeks in the current period. When adjusted to a normalized 13-week comparison, revenue growth accelerated to 8.1%.
Profitability metrics showed meaningful improvement during the quarter. Gross profit margin widened by 90 basis points to reach 29.4%, while adjusted EBITDA margin grew 120 basis points to 5.0%. The quarter’s adjusted EBITDA totaled $162.3 million, representing a $37.8 million increase compared to the prior-year period.
Net income for the quarter stood at $39.2 million, translating to 9 cents per diluted share. This compares favorably to the year-ago result of $22.8 million, or 5 cents per share — representing nearly a doubling of bottom-line profitability.
Annual Performance Metrics
Looking at the complete fiscal 2025 picture, Chewy generated net sales of $12.60 billion — representing 8.3% growth on a normalized 52-week basis. Full-year adjusted EBITDA climbed to $719.2 million, an increase of $148.7 million versus the prior year, with the corresponding margin expanding 90 basis points to 5.7%.
The company’s free cash flow reached an unprecedented $562 million for the year — a milestone figure that signals strong operational efficiency and capital generation.
The company’s active customer count grew 4% during Q4 to reach 21.3 million. Meanwhile, net sales per active customer increased 2.2% to $591, demonstrating consistent spending patterns among the existing user base.
Chief Executive Sumit Singh characterized the annual performance as originating from “a position of real strength,” highlighting sales expansion, EBITDA growth, and unprecedented cash flow 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 Guidance Surpasses Expectations
Looking ahead to fiscal 2026, Chewy provided full-year net sales guidance ranging from $13.6 billion to $13.75 billion. This outlook surpasses the analyst consensus estimate of $13.58 billion, with the guidance midpoint positioning slightly above Street expectations.
For the first quarter, the company projects adjusted earnings per share between $0.40 and $0.45 on net sales ranging from $3.33 billion to $3.36 billion. Wall Street had been forecasting $0.41 per share on revenue of $3.36 billion.
While the Q1 revenue guidance midpoint tracks marginally below consensus estimates, the EPS projection aligns closely with analyst expectations.
The company’s fiscal 2025 adjusted EBITDA of $719.2 million — marking a 26% year-over-year increase — combined with the record $562 million in free cash flow, caps off a robust year for the online pet supplies retailer.
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