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

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 shares are trading higher after a strong Q4 earnings beat.$CHWY reported adj EPS of $0.27 versus $0.09 expected, while revenue came in at $3.26 billion, in line with estimates.

Gross margin rose 90 bps to 29.4%, and adjusted EBITDA margin improved to 5.0%. pic.twitter.com/1HdeRm06hB

— Wall St Engine (@wallstengine) March 25, 2026

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.

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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.

CEO Sumit Singh credited the full-year performance as coming from “a position of real strength,” pointing to sales growth, EBITDA expansion, and record cash generation.

“That performance underscores the durability of the Chewy model,” Singh said, adding the company has confidence in delivering “continued profitable growth, expanding margins, and strong cash generation in 2026 and beyond.”

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.