Key Highlights
- Chewy delivered Q4 adjusted earnings of $0.27 per share, surpassing analyst expectations of $0.09 by a substantial $0.18
- Quarterly revenue reached $3.26 billion, representing an 8.1% increase year-over-year on a comparable 13-week basis
- The company’s active customer base expanded 4% to reach 21.3 million, while average customer spending increased 2.2% to $591
- Fiscal 2025 adjusted EBITDA climbed to $719.2 million, marking a 26% increase, alongside a company-record free cash flow of $562 million
- The pet retailer’s 2026 full-year sales outlook of $13.6B–$13.75B exceeded the analyst consensus estimate of $13.58B
Shares of Chewy (CHWY) surged sharply during Wednesday’s premarket session, jumping as much as 11.3% after the online pet products retailer delivered fourth-quarter results that significantly exceeded Wall Street projections and provided upbeat guidance for the current fiscal year. The stock traded at approximately $24.98 in early premarket activity, representing a gain of roughly 6.5%.
The company disclosed adjusted earnings of $0.27 per share for its fiscal quarter that concluded on February 1. This figure substantially outperformed the Street consensus of $0.09 per share, delivering a beat of $0.18 — representing a significant margin of outperformance.
Quarterly revenue totaled $3.26 billion. While this represents just a 0.5% uptick on an as-reported basis compared to the prior year, the year-over-year comparison is complicated by differing quarter lengths — last year’s comparable period spanned 14 weeks compared to 13 weeks in the current quarter. When adjusted for a consistent 13-week timeframe, revenue actually advanced 8.1%.
Profitability metrics showed meaningful improvement during the period. The company’s gross margin widened by 90 basis points to reach 29.4%, while adjusted EBITDA margin strengthened by 120 basis points to 5.0%. Adjusted EBITDA for the quarter registered $162.3 million, representing an increase of $37.8 million versus the comparable year-ago period.
Net income for the quarter stood at $39.2 million, translating to 9 cents per diluted share. This compares favorably to net income of $22.8 million, or 5 cents per share, in the prior-year quarter — representing nearly a doubling of bottom-line profitability.
Annual Performance Metrics
For the complete fiscal year 2025, Chewy generated net sales of $12.60 billion — an 8.3% gain on a normalized 52-week comparison basis. Adjusted EBITDA totaled $719.2 million, climbing $148.7 million year-over-year, with margin expansion of 90 basis points to 5.7%.
The company generated a record $562 million in free cash flow throughout the year. This metric represents a significant achievement that typically captures investor interest.
The active customer count grew 4% to 21.3 million during the fourth quarter. Net sales per active customer advanced 2.2% to $591, demonstrating consistent spending patterns among the company’s existing user base.
Chief Executive Officer Sumit Singh characterized the full-year results as emanating from “a position of real strength,” highlighting sales expansion, EBITDA growth, and unprecedented cash generation.
“That performance underscores the durability of the Chewy model,” Singh stated, expressing confidence in the company’s ability to achieve “continued profitable growth, expanding margins, and strong cash generation in 2026 and beyond.”
Forward Outlook Tops Projections
Looking ahead to fiscal 2026, Chewy issued full-year net sales guidance ranging from $13.6 billion to $13.75 billion. Wall Street analysts had been anticipating $13.58 billion, placing the company’s guidance midpoint modestly above consensus expectations.
For the first quarter specifically, Chewy projected adjusted earnings per share between $0.40 and $0.45 on net sales of $3.33 billion to $3.36 billion. Analyst estimates had centered around $0.41 per share on revenue of $3.36 billion.
While the Q1 revenue guidance midpoint falls marginally below consensus, the company’s EPS guidance aligns with analyst expectations.
Fiscal 2025 adjusted EBITDA of $719.2 million represented a 26% year-over-year increase, while the company’s record free cash flow of $562 million capped off an impressive fiscal year for the pet products retailer.
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