Chewy Stock Surges On Strong Q4 Results And Guidance

Chewy Inc (NYSE:CHWY) shares are rallying on Wednesday after the online pet‑care retailer delivered a stronger‑than‑expected fourth quarter and rolled out a solid fiscal guidance for 2026.

• Chewy stock is showing exceptional strength. Why is CHWY stock surging?

Stronger‑Than‑Expected Q4 Results Lift Sentiment

The results were solid enough for JPMorgan's Doug Anmuth to reaffirm his Overweight rating, noting that the company's momentum looks healthier than many investors anticipated.

Chewy reported fourth‑quarter revenue of $3.265 billion, an 8% year‑over‑year increase when adjusting for the extra week in last year's quarter. That figure landed just above the top end of management's guidance and slightly ahead of Wall Street expectations.

Profitability also improved, with adjusted EBITDA came in at $162 million, good for a 5% margin and a 120‑basis‑point improvement from a year ago.

Customer Growth Outpaces Forecasts

Chewy also posted a healthy jump in active customers. The company added 172,000 net new customers during the quarter — above what analysts were expecting.

Anmuth said the customer trends, combined with improving margins and steady sales growth, show that Chewy is executing well across its core business.

Healthy 2026 Guidance

The company's fiscal 2026 outlook was another bright spot. Chewy expects revenue between $13.6 billion and $13.75 billion, which implies 8% to 9% growth. It’s not entirely above consensus, which sits near $13.723 billion, but the midpoint reflects solid growth and was better than many investors anticipated heading into the report.

Chewy also expects adjusted EBITDA margins of 6.6% to 6.8%, marking another year of meaningful margin expansion and coming in slightly ahead of JPMorgan's expectations.

What Analysts Want To Hear Next

On the earnings call, JPMorgan said it will be listening for more detail on several fronts: overall demand trends in the pet category, what's driving customer and revenue growth heading into 2026, how Chewy plans to expand margins amid rising fuel costs, and updates on newer initiatives like Vet Care, Chewy+, Sponsored Ads, Healthcare, automation and the SmartEquine business.