Chewy Inc - Class A
Q4 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +8.88%.
Did CHWY Beat Earnings? Q4 2026 Results
Chewy delivered a strong earnings beat in fiscal Q4 2026, posting adjusted diluted EPS of $0.27 against a consensus estimate of $0.20, a 35% positive surprise that signaled meaningful margin expansion even as reported revenue came in essentially in line. Net sales reached $3.26 billion, fractionally below the $3.27 billion consensus and up just 0.5% year over year on a reported basis, though that headline figure was distorted by a calendar headwind; on a normalized 13-week basis, revenue grew 8.1%, reflecting genuine underlying momentum. The key driver was gross margin expansion of 90 basis points to 29.4%, supported by mix optimization and operational efficiencies that lifted adjusted EBITDA 30.4% to $162.30 million. Autoship customer sales, which now represent 84.0% of quarterly net sales, continued to anchor the business with recurring, high-retention revenue. With full-year free cash flow hitting a record $562.40 million and active customers growing 4.0% to 21.33 million, CEO Sumit Singh expressed confidence that Chewy's model will sustain profitable growth and margin expansion into fiscal 2026.
- Autoship customer sales represented 84.0% of Q4 net sales, up from 80.6% in the prior-year quarter
- Gross margin expanded 90 basis points year over year to 29.4% in Q4
- Active customers grew 4.0% year over year to 21.327 million
- Net sales per active customer increased 2.2% year over year to $591
- Normalized 13-week net sales growth of 8.1% in Q4
“We exited 2025 from a position of real strength: $12.6 billion in net sales or 8.3% growth, $719 million of adjusted EBITDA or 26% growth, record free cash flow of $562 million, and 21.3 million active customers. That performance underscores the durability of the Chewy model and gives us confidence in our ability to deliver continued profitable growth, expanding margins, and strong cash generation in 2026 and beyond.”
Chewy CEO, on the earnings call
Forward Guidance & Outlook
CEO Sumit Singh expressed confidence in Chewy's ability to deliver continued profitable growth, expanding margins, and strong cash generation in fiscal 2026 and beyond, citing the durability of the Chewy business model.
CHWY YoY Financials
CHWY Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.