Chewy Inc. (NYSE:CHWY) reported on Wednesday a fourth-quarter 2025 adjusted earnings of 27 cents per share, beating the consensus of 20 cents and within the management guidance of 24 cents to 27 cents.

The retailer of pet supplies reported sales of $3.265 billion, up 0.5% year over year (+8.1% on a normalized 13-week basis), compared to the consensus of $3.262 billion and the management guidance of $3.24 billion-$3.26 billion.

“That performance underscores the durability of the Chewy model and gives us confidence in our ability to deliver continued profitable growth, expanding margins, and strong cash generation in 2026 and beyond,” said Sumit Singh, CEO of Chewy.

Autoship Growth And Customer Metrics Support Stability

Autoship customer sales reached $2.74 billion, up 4.8%. Chewy Autoship is a recurring delivery program that allows customers to schedule regular shipments of pet food and supplies.

It offers a discount on the initial order and ongoing savings on recurring orders. In the quarter, Autoship customer sales represented 84% of net sales.

Gross margin saw a year-over-year increase of 90 basis points at 29.4%. Net sales per active customer increased by 2.2% to $591.

Adjusted EBITDA increased 30.4% to $162.3 million. The adjusted EBITDA margin increased by 120 basis points year over year to 5%. Chewy reported active customers of 21.33 million, up 4% year over year.

2026 Outlook Signals Earnings Strength

Chewy expects first-quarter 2026 adjusted earnings of 40-45 cents per share versus the consensus of 27 cents.

The pet product retailer forecasts first-quarter sales of $3.33 billion-$3.36 billion compared to the consensus of $3.393 billion.

Chewy expects fiscal 2026 sales of $13.60 billion-$13.75 billion compared to the consensus of $13.723 billion, with adjusted EBITDA margin expected to be 6.6%-6.8%.

Chewy Management Commentary Points To Steady Industry Trends

In an earnings conference call, CEO Singh commented, “We expect 2026 pet industry dynamics to largely mirror 2025, steady and resilient to macro trends, but without cyclical acceleration.”

“On margin expansion, including its trajectory and durability, we remain equally bullish,” Singh added.

In 2026, the company expects to further expand profitability, with the rate of expansion expected to increase relative to 2025.

The CEO further added that Chewy remains well-positioned to compound growth, expand share, and drive sustained margin and free cash flow expansion in 2026 and beyond, independent of a macro re-acceleration.

CHWY Price Action: Chewy shares were up 14.67% at $26.89 at the time of publication on Wednesday, according to Benzinga Pro data.

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