Chewy (NYSE:CHWY) Releases Earnings Results, Misses Estimates By $0.01 EPS

Chewy (NYSE:CHWY) issued its quarterly earnings data 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. Chewy had a net margin of 1.64% and a return on equity of 56.78%. The company had revenue of $3.26 billion for the quarter, compared to the consensus estimate of $3.26 billion. During the same quarter last year, the business posted $0.28 earnings per share. Chewy’s revenue was up .5% on a year-over-year basis.

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 Price Performance

Shares of CHWY stock opened at $23.45 on Wednesday. Chewy has a 1-year low of $22.74 and a 1-year high of $48.62. The business has a 50-day moving average of $27.30 and a 200 day moving average of $32.38. The stock has a market capitalization of $9.73 billion, a PE ratio of 48.85, a P/E/G ratio of 1.60 and a beta of 1.60.

Analyst Ratings Changes

A number of equities analysts have recently weighed in on CHWY shares. Morgan Stanley cut their target price on Chewy from $51.00 to $50.00 and set an “overweight” rating on the stock in a research note on Tuesday, March 10th. The Goldman Sachs Group boosted their price target on shares of Chewy from $44.00 to $52.00 and gave the company a “buy” rating in a research report on Thursday, December 11th. Raymond James Financial raised Chewy from a “market perform” rating to an “outperform” rating and set a $28.00 price objective on the stock in a report on Thursday, February 19th. UBS Group set a $51.00 target price on shares of Chewy in a research note on Tuesday, January 13th. Finally, Piper Sandler reaffirmed an “overweight” rating on shares of Chewy in a report on Thursday, February 5th. Seventeen equities research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $45.55.

Insider Buying and Selling

In other Chewy news, CTO Satish Mehta sold 13,013 shares of the stock in a transaction 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 sale, the chief technology officer owned 273,835 shares of the company’s stock, valued at $7,938,476.65. This represents a 4.54% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. 0.43% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the business. Pacer Advisors Inc. raised its holdings in shares of Chewy by 14.9% during the fourth quarter. Pacer Advisors Inc. now owns 33,734 shares of the company’s stock valued at $1,115,000 after acquiring an additional 4,374 shares in the last quarter. Corient Private Wealth LLC purchased a new position in Chewy during the fourth quarter valued at $315,000. Vident Advisory LLC boosted its stake in Chewy by 7.7% in the 4th quarter. Vident Advisory LLC now owns 67,409 shares of the company’s stock worth $2,228,000 after purchasing an additional 4,800 shares in the last quarter. Delta Global Management LP bought a new position in shares of Chewy in the fourth quarter worth approximately $1,278,000. Finally, XTX Topco Ltd lifted its position in Chewy by 266.9% in the 4th quarter. XTX Topco Ltd now owns 99,191 shares of the company’s stock valued at $3,278,000 after acquiring an additional 72,159 shares in the last quarter. Institutional investors own 93.09% of the company’s stock.

Trending Headlines about Chewy

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.