Chewy Inc - Class A
Q2 2027 Earnings
Adjusted net income includes $24.0 million benefit from net legal settlement proceeds and $6.4 million in transaction-related costs
Market Reaction
Did CHWY Beat Earnings? Q2 2027 Results
Chewy posted a mixed fiscal Q2 2027 quarter, delivering a narrow revenue beat while falling just short on the bottom line, as adjusted diluted EPS of $0.36 came in 0.39% below the $0.36 consensus estimate, though revenue of $3.33 billion edged past expectations by 0.39% and grew 7.3% year over year. The most material driver of the quarter was the continued strength of Chewy's recurring revenue engine, with Autoship customer sales climbing 9.3% to $2.82 billion and representing 84.6% of net sales, up from 83.0% a year ago. Active customers grew 3.8% to 21.71 million, while net sales per active customer rose to $602. Adjusted EBITDA margin expanded 90 basis points to 6.8%, reflecting disciplined cost management even as the company absorbed integration costs tied to its SmartPak and Modern Animal acquisitions. Looking ahead, management raised its full-year revenue and profitability outlook, with CEO Sumit Singh citing the durability of recurring revenue and continued customer growth as the foundation for that confidence, themes he is expected to address at an upcoming Goldman Sachs consumer conference.
- Autoship customer sales grew 9.3% YoY to $2,817.2 million, representing 84.6% of net sales
- Active customers increased 3.8% YoY to 21.705 million
- Net sales per active customer increased 1.9% YoY to $602
- Adjusted EBITDA margin expanded 90 basis points to 6.8%
- Organic net sales growth of 5.7% excluding SmartPak and Modern Animal contributions
- Net margin expanded 40 basis points year over year to 2.4%
“Chewy delivered a strong second quarter, with growth of 7.3% to $3.33 billion of net sales at the high end of our guidance, and a 6.8% Adj. EBITDA margin, exceeding our expectations.”
Chewy CEO, on the earnings call
Forward Guidance & Outlook
Chewy raised its full-year revenue and profitability outlook, with CEO Sumit Singh citing the durability of the recurring revenue base, continued customer growth, and disciplined execution as drivers of confidence. The company plans to continue investing in opportunities that deepen customer engagement and create long-term shareholder value.
CHWY YoY Financials
CHWY Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.