Chewy (NYSE:CHWY) Announces Earnings Results

Chewy (NYSE:CHWY) issued its earnings results on Wednesday. The company reported $0.27 earnings per share for the quarter, missing the consensus estimate of $0.28 by ($0.01), FiscalAI reports. The company had revenue of $3.26 billion for the quarter, compared to analyst estimates of $3.26 billion. Chewy had a return on equity of 56.78% and a net margin of 1.64%.The company’s revenue for the quarter was up .5% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.28 earnings per share.

Here are the key takeaways from Chewy’s conference call:

• Chewy posted strong 2025 results with $12.6B in net sales, record $562.4M free cash flow, and guided 2026 net sales of $13.6–13.75B and adjusted EBITDA margin of 6.6%–6.8% (≈100 bps expansion).
• Recurring revenue and customer metrics remain a core strength—Autoship was 84% of Q4 sales, active customers reached 21.3M, NSPAC was $591, and management expects ~150k–250k net adds per quarter.
• Management expects further margin expansion driven by SG&A leverage (next‑gen Houston FC ramp), mix (premium/health and Ads), and AI efficiencies—AI is forecast to contribute a low‑tens‑of‑millions benefit in 2026 and ~$50M+ annualized savings in 2027.
• Strategic growth initiatives include scaling Chewy Vet Care (18 clinics) and launching the Chewy Made private‑brand platform to boost consumables penetration, margins, and NSPAC growth.
• The SmartEquine acquisition is expected to contribute ~$80M to 2026 sales with high gross margins (~35%+), but management says the business needs stabilization and won’t be a material near‑term profit driver.

Chewy Stock Performance

Shares of CHWY stock opened at $23.45 on Wednesday. The stock’s fifty day moving average price is $27.30 and its two-hundred day moving average price is $32.38. The company has a market cap of $9.73 billion, a PE ratio of 48.85, a P/E/G ratio of 1.60 and a beta of 1.60. Chewy has a fifty-two week low of $22.74 and a fifty-two week high of $48.62.

Insider Activity

In related news, CTO Satish Mehta sold 13,013 shares of the company’s stock in a transaction that occurred on Monday, February 2nd. The shares were sold at an average price of $28.99, for a total transaction of $377,246.87. Following the completion of the transaction, the chief technology officer directly owned 273,835 shares in the company, valued at $7,938,476.65. This represents a 4.54% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Company insiders own 0.43% of the company’s stock.

Hedge Funds Weigh In On Chewy

Institutional investors and hedge funds have recently bought and sold shares of the company. Osterweis Capital Management Inc. bought a new position in Chewy in the 2nd quarter valued at approximately $30,000. Los Angeles Capital Management LLC bought a new stake in shares of Chewy during the 4th quarter valued at about $31,000. Aster Capital Management DIFC Ltd acquired a new stake in shares of Chewy during the 4th quarter worth approximately $45,000. EverSource Wealth Advisors LLC grew its holdings in Chewy by 412.2% in the second quarter. EverSource Wealth Advisors LLC now owns 1,091 shares of the company’s stock worth $46,000 after purchasing an additional 878 shares during the period. Finally, Danske Bank A S acquired a new stake in shares of Chewy in the 3rd quarter valued at about $53,000. Institutional investors and hedge funds own 93.09% of the company’s stock.

Analyst Upgrades and Downgrades

A number of equities analysts have commented on CHWY shares. Piper Sandler reaffirmed an “overweight” rating on shares of Chewy in a research report on Thursday, February 5th. Wolfe Research set a $44.00 target price on Chewy in a report on Monday, January 5th. Wall Street Zen upgraded shares of Chewy from a “hold” rating to a “buy” rating in a research report on Saturday, February 14th. TD Cowen reduced their price target on Chewy from $48.00 to $39.00 and set a “buy” rating on the stock in a research report on Tuesday, March 10th. Finally, The Goldman Sachs Group lifted their price objective on Chewy from $44.00 to $52.00 and gave the company a “buy” rating in a report on Thursday, December 11th. Seventeen investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $45.55.

Key Chewy News

Here are the key news stories impacting Chewy this week:

• Positive Sentiment: TD Cowen reiterated a Buy rating ahead of earnings, citing steady top-line growth, expanding margins and attractive valuation — a supportive analyst view that could underpin rallies if results beat expectations. TD Cowen reiterates Chewy stock Buy rating ahead of earnings
• Positive Sentiment: Longer-form bullish takes (The Motley Fool) argue Chewy’s pullback makes it an attractive buy given customer loyalty and multi-year growth drivers — a narrative that can attract value-oriented buyers. Chewy Is Down 30% in 2026. Is This a Once-in-a-Lifetime Buying Opportunity?
• Neutral Sentiment: Chewy released fiscal fourth-quarter and full-year 2025 results this morning; investors will parse revenue, Autoship growth, margin commentary and guidance for forward direction — the initial headline release creates uncertainty until details are digested. Chewy Announces Fiscal Fourth Quarter and Full Year 2025 Financial Results
• Neutral Sentiment: Earnings previews note potential upside drivers (Autoship growth, digital upgrades, pet healthcare initiatives) but warn macro pressures and promotional activity could temper results — outcomes hinge on margin and guidance content. Chewy to Report Q4 Earnings: Essential Insights Ahead of the Report
• Negative Sentiment: CHWY has hit a 52-week low amid the sell-off, signaling deterioration in near-term market confidence and increasing downside risk if results disappoint. Chewy stock hits 52-week low at $23.05 as challenges persist
• Negative Sentiment: Unusually large options activity with heavy put buying (noted volumes of ~22,581 puts) suggests some traders are positioned for further downside or hedging ahead of the print. That elevates short-term volatility. Chewy Sees Unusually Large Options Volume (NYSE:CHWY)
• Negative Sentiment: Market commentary framed the Q4 release as a “prove-it” moment; analysts warn promotions and macro headwinds could pressure results — a miss or weak guidance would likely push the stock lower. Chewy Q4 Preview: Pet Stock Hits 52-Week Low, Market Expert Says Earnings Are ‘Prove It’ Moment

About Chewy

Chewy, Inc (NYSE: CHWY) is a leading e-commerce retailer specializing in pet food, supplies and services. The company offers a comprehensive assortment of products for dogs, cats, fish, birds and other small animals, including prescription medications, veterinary health products, grooming essentials and toys. Through its online platform and mobile app, Chewy provides an intuitive shopping experience with features such as Autoship, ensuring regular deliveries of pet essentials at schedule intervals.

Founded in 2011 by Ryan Cohen and Michael Day, Chewy initially operated under the name Mr.