Chewy (CHWY) Stock Jumps 11% After Q4 Earnings Crush Analyst Estimates

TLDR

• Chewy posted Q4 adjusted EPS of $0.27, beating the $0.09 analyst consensus by $0.18
• Revenue came in at $3.26 billion, up 8.1% on a normalized 13-week basis year-over-year
• Active customers grew 4% to 21.3 million; net sales per customer rose 2.2% to $591
• Full-year 2025 adjusted EBITDA hit $719.2 million, up 26%, with record free cash flow of $562 million
• Chewy guided 2026 full-year sales of $13.6B–$13.75B, ahead of the $13.58B analyst consensus

Chewy (CHWY) opened sharply higher on Wednesday, climbing as much as 11.3% in premarket trading after the pet-supplies retailer posted a strong fourth quarter and issued a full-year outlook above Wall Street expectations. The stock was last seen at $24.98, up around 6.5% in early premarket moves.

Chewy reported adjusted earnings per share of $0.27 for the quarter ended February 1. That crushed the analyst consensus of $0.09 by $0.18 — a clean beat by any measure.

Revenue for the quarter came in at $3.26 billion. On a reported basis, that’s a 0.5% increase year-over-year, though the comparison is skewed — the prior-year quarter had 14 weeks versus 13 this time around. On a normalized 13-week basis, revenue grew 8.1%.

Chewy, Inc., CHWY

The quarter showed solid margin progress too. Gross margin expanded 90 basis points to 29.4%, and adjusted EBITDA margin improved 120 basis points to 5.0%. Adjusted EBITDA for the quarter totaled $162.3 million, up $37.8 million from the same period a year ago.

Profit for the quarter came in at $39.2 million, or 9 cents per share. That compares to $22.8 million, or 5 cents per share, in the year-ago quarter — nearly double the net income.

Full Year in Focus

For the full fiscal year 2025, Chewy reported net sales of $12.60 billion — up 8.3% on a normalized 52-week basis. Adjusted EBITDA reached $719.2 million, a jump of $148.7 million year-over-year, with the margin expanding 90 basis points to 5.7%.

Free cash flow hit a record $562 million for the year. That’s the kind of number that gets investors’ attention.

Active customers climbed 4% to 21.3 million during Q4. Net sales per active customer rose 2.2% to $591, pointing to steady spend from the existing customer base.

2026 Guidance Ahead of Estimates

For fiscal 2026, Chewy guided full-year net sales of $13.6 billion to $13.75 billion. Analysts had expected $13.58 billion, putting the midpoint of guidance just ahead of the Street.

For Q1 specifically, Chewy forecast adjusted EPS of $0.40 to $0.45 on net sales of $3.33 billion to $3.36 billion. Analysts were modeling $0.41 per share on $3.36 billion in revenue.

The Q1 revenue guidance midpoint comes in slightly below consensus, though EPS guidance is in line with expectations.

Full-year adjusted EBITDA for fiscal 2025 came in at $719.2 million — up 26% year-over-year — with record free cash flow of $562 million rounding out a strong year for the company.

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