Key Takeaways
- Chewy delivered Q4 adjusted EPS of $0.27, smashing the analyst estimate of $0.09 by a wide margin of $0.18
- Quarterly revenue reached $3.26 billion, reflecting 8.1% growth year-over-year on a normalized 13-week comparison
- The customer base expanded 4% to 21.3 million active users; average spend per customer increased 2.2% to $591
- Fiscal 2025 adjusted EBITDA climbed to $719.2 million, representing 26% growth, alongside record free cash flow of $562 million
- The company projects fiscal 2026 revenue between $13.6B and $13.75B, surpassing the Wall Street consensus of $13.58B
Shares of Chewy (CHWY) surged on Wednesday morning, jumping as high as 11.3% during premarket hours following the online pet retailer’s impressive fourth-quarter performance and upbeat full-year forecast that exceeded analyst projections. The stock traded around $24.98 in early premarket activity, representing a gain of approximately 6.5%.
The company delivered adjusted earnings per share of $0.27 for the fiscal quarter that concluded on February 1. This figure significantly outperformed the Street’s consensus forecast of $0.09, representing a substantial beat of $0.18 per share.
Quarterly revenue totaled $3.26 billion. While this marks a modest 0.5% increase on a reported basis year-over-year, the comparison requires context — last year’s corresponding period spanned 14 weeks compared to 13 weeks this quarter. When adjusted for this calendar difference on a normalized 13-week basis, revenue actually advanced 8.1%.
The quarter also delivered meaningful margin expansion. Gross margin widened by 90 basis points to reach 29.4%, while adjusted EBITDA margin strengthened by 120 basis points to 5.0%. Quarterly adjusted EBITDA came to $162.3 million, marking an increase of $37.8 million compared to the prior-year period.
Net profit for the quarter totaled $39.2 million, translating to 9 cents per share. This represents substantial improvement from the year-ago figure of $22.8 million, or 5 cents per share — effectively doubling year-over-year.
Annual Performance Highlights
For the complete fiscal 2025 year, Chewy generated net sales of $12.60 billion — representing 8.3% growth on a normalized 52-week basis. Adjusted EBITDA surged to $719.2 million, an increase of $148.7 million from the previous year, with margin expansion of 90 basis points to 5.7%.
The company achieved record free cash flow of $562 million for the full year — a metric that typically resonates strongly with the investment community.
Active customer count increased 4% to 21.3 million in Q4. Meanwhile, net sales per active customer grew 2.2% to $591, demonstrating sustained engagement and spending from the core customer base.
Chief Executive Sumit Singh attributed the annual results to operating from “a position of real strength,” highlighting revenue 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.”
Fiscal 2026 Outlook Beats Expectations
Looking ahead to fiscal 2026, Chewy provided full-year net sales guidance ranging from $13.6 billion to $13.75 billion. This compares favorably to the analyst consensus of $13.58 billion, with the guidance midpoint positioned above Street expectations.
For the first quarter specifically, the company anticipates adjusted EPS between $0.40 and $0.45 on net sales of $3.33 billion to $3.36 billion. The Street had been modeling $0.41 per share on revenue of $3.36 billion.
While the Q1 revenue guidance midpoint trails consensus marginally, the EPS forecast aligns with analyst expectations.
For fiscal 2025, adjusted EBITDA totaled $719.2 million — up 26% from the previous year — complemented by record free cash flow of $562 million, capping an exceptionally strong fiscal year for the pet supplies e-commerce leader.
