Key Highlights

  • Q4 adjusted earnings per share reached $0.27, surpassing analyst forecasts of $0.09 by a margin of $0.18
  • Quarterly revenue totaled $3.26 billion, representing an 8.1% increase on a normalized 13-week comparison
  • The customer base expanded 4% to reach 21.3 million active users, with average spending per customer increasing 2.2% to $591
  • Fiscal 2025 adjusted EBITDA climbed to $719.2 million, marking a 26% gain alongside record free cash flow of $562 million
  • Management projects fiscal 2026 revenue between $13.6B and $13.75B, exceeding the $13.58B Street estimate

Shares of Chewy (CHWY) experienced a significant surge Wednesday morning, jumping as much as 11.3% during premarket hours following the online pet retailer’s impressive fourth-quarter financial report and forward-looking guidance that topped analyst projections. Early premarket activity showed the stock trading around $24.98, representing approximately a 6.5% gain.

The company delivered adjusted earnings of $0.27 per share for the period ending February 1. This figure substantially exceeded the consensus estimate of $0.09 by $0.18, representing a significant outperformance.

Quarterly revenue reached $3.26 billion. While the reported year-over-year change shows a 0.5% uptick, this metric requires context—last year’s comparable period spanned 14 weeks compared to 13 weeks in the current quarter. When adjusted to a comparable 13-week timeframe, revenue growth accelerates to 8.1%.


CHWY Stock Card
Chewy, Inc., CHWY

Margin performance during the quarter demonstrated meaningful improvement. Gross margin widened by 90 basis points to reach 29.4%, while adjusted EBITDA margin grew 120 basis points to 5.0%. The company generated adjusted EBITDA of $162.3 million for the quarter, representing a $37.8 million increase compared to the prior-year period.

Net income for the quarter totaled $39.2 million, translating to 9 cents per diluted share. This represents substantial growth from $22.8 million, or 5 cents per share, recorded in the comparable quarter last year—approaching double the previous year’s bottom line.

Annual Performance Snapshot

Chewy’s complete fiscal 2025 results showed net sales of $12.60 billion—representing 8.3% growth when normalized to a 52-week basis. Adjusted EBITDA surged to $719.2 million, an increase of $148.7 million versus the prior year, with margin expansion of 90 basis points to 5.7%.

The company generated record free cash flow of $562 million for the fiscal year. This milestone metric tends to capture significant investor interest.

The active customer count grew 4% during Q4 to reach 21.3 million. Average net sales per active customer increased 2.2% to $591, demonstrating consistent spending patterns among the existing user base.

CEO Sumit Singh characterized the annual results as emerging 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 deliver “continued profitable growth, expanding margins, and strong cash generation in 2026 and beyond.”

Forward Outlook Tops Analyst Projections

Looking ahead to fiscal 2026, Chewy provided full-year net sales guidance ranging from $13.6 billion to $13.75 billion. The consensus among analysts stood at $13.58 billion, positioning the guidance midpoint above Street expectations.

For the first quarter, management projects adjusted EPS between $0.40 and $0.45 on net sales of $3.33 billion to $3.36 billion. Wall Street analysts had been anticipating $0.41 per share on revenue of $3.36 billion.

While the Q1 revenue guidance midpoint tracks marginally below consensus figures, the EPS outlook aligns with analyst expectations.

The company’s fiscal 2025 adjusted EBITDA of $719.2 million represented a 26% year-over-year increase, complemented by the record $562 million in free cash flow that capped a robust year for the pet supply retailer.