Chewy (NYSE:CHWY) Posts Earnings Results

Chewy (NYSE:CHWY) released its earnings results on Wednesday. The company reported $0.09 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.28 by ($0.19), RTT News reports. Chewy had a net margin of 1.77% and a return on equity of 53.48%. The firm had revenue of $3.26 billion during the quarter, compared to analyst estimates of $3.26 billion. During the same period in the previous year, the company earned $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 closed FY2025 with >$12.6B in net sales (?8.3% YoY), expanded gross margin to 29.8%, delivered record free cash flow of $562.4M, and grew adjusted EBITDA ~26% to $719M, highlighting strong operating leverage.
• Management guided 2026 net sales of $13.6B–$13.75B (8%–9% growth) and an adjusted EBITDA margin of 6.6%–6.8% (?100 bps expansion), noting Q1 as the low point with growth expected to accelerate into Q2–Q3.
• Chewy expects AI deployments across purchase experience, customer service, fulfillment, pharmacy and marketing to yield a low?tens of millions in 2026 and a pathway to ~$50M+ annualized savings in 2027, reducing structural cost to serve.
• Strategic initiatives include scaling Chewy Vet Care (18 clinics across five states) and launching the unified private?brand platform Chewy Made to expand consumables penetration, NSPAC and higher?margin private?brand mix.
• Strong financial position with ~ $1.7B liquidity, no debt, and ongoing capital return priority—Chewy repurchased ~6.8M shares for ~$257M in 2025 and expects buyback activity to increase.

Chewy Price Performance

Shares of NYSE CHWY opened at $27.05 on Friday. The company has a 50 day simple moving average of $27.08 and a 200-day simple moving average of $32.30. The company has a market capitalization of $11.23 billion, a P/E ratio of 52.03, a P/E/G ratio of 1.80 and a beta of 1.60. Chewy has a 1 year low of $22.74 and a 1 year high of $48.62.

Insider Activity at Chewy

In other news, CTO Satish Mehta sold 13,013 shares of the stock in a transaction on Monday, February 2nd. The stock was 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 approximately $7,938,476.65. This represents a 4.54% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Insiders own 0.43% of the company’s stock.

Institutional Investors Weigh In On Chewy

Several institutional investors and hedge funds have recently modified their holdings of the company. Wellington Management Group LLP boosted its holdings in Chewy by 295.9% during the 3rd quarter. Wellington Management Group LLP now owns 17,622,768 shares of the company’s stock valued at $712,841,000 after acquiring an additional 13,171,325 shares during the period. Viking Global Investors LP increased its stake in Chewy by 146.9% during the fourth quarter. Viking Global Investors LP now owns 13,536,645 shares of the company’s stock worth $447,386,000 after purchasing an additional 8,052,955 shares during the period. AQR Capital Management LLC increased its stake in Chewy by 10.0% during the fourth quarter. AQR Capital Management LLC now owns 11,218,840 shares of the company’s stock worth $370,558,000 after purchasing an additional 1,022,694 shares during the period. Morgan Stanley lifted its position in shares of Chewy by 33.8% during the fourth quarter. Morgan Stanley now owns 7,660,258 shares of the company’s stock worth $253,172,000 after purchasing an additional 1,937,014 shares in the last quarter. Finally, State Street Corp lifted its position in shares of Chewy by 3.0% during the fourth quarter. State Street Corp now owns 6,655,547 shares of the company’s stock worth $219,966,000 after purchasing an additional 193,947 shares in the last quarter. Hedge funds and other institutional investors own 93.09% of the company’s stock.

Key Stories Impacting Chewy

Here are the key news stories impacting Chewy this week:

• Positive Sentiment: Q4 results and upbeat 2026 guidance — Chewy reported roughly $3.26B in Q4 revenue, improved margins and materially higher free cash flow, and provided a confident 2026 sales and EBITDA-margin outlook that convinced investors the recovery in profitability is sustainable. Business Wire: Chewy Q4 Results
• Positive Sentiment: Autoship strength, AI efficiency and Vet Care growth — Management highlighted Autoship (sticky recurring revenue), expected AI-driven cost savings, and expansion of Chewy Vet Care as key levers for margin expansion and market-share gains. These operating levers were cited repeatedly as the main reason for the stock move. Benzinga: AI Efficiency Benefits
• Positive Sentiment: Improving cash generation and margin profile — Analysts and investors noted a sizable year-over-year rise in free cash flow and adjusted EBITDA, supporting buyback flexibility and valuation upside in models showing multi-year EPS recovery. Seeking Alpha: Expanding Margin Profile
• Neutral Sentiment: Unusual options and intraday positioning — Large call-buying and heavy options volume amplified the move, suggesting part of the move was technical/flow-driven (short-covering and positioning) rather than purely fundamentals. American Banking News: Options Volume
• Neutral Sentiment: Positive CEO messaging & media coverage — CEO interviews and press coverage reinforced the bullish tone on resilient pet demand even as consumers face cost pressure, supporting sentiment but not altering fundamentals overnight. CNBC: CEO Interview
• Negative Sentiment: Analyst price-target cuts and mixed receptions — Several firms trimmed targets (JPMorgan, Goldman, Wedbush among others) even as many kept Buy/Overweight ratings, leaving room for further revisions and volatility if execution slips. Benzinga: Analyst Target Changes
• Negative Sentiment: Insider and institutional selling — Recent filings show insiders and some large institutions trimming positions, which increases supply risk if selling resumes and could limit near-term upside. Quiver Quant: Shareholder Activity

Wall Street Analyst Weigh In

CHWY has been the subject of a number of recent research reports. Wall Street Zen raised shares of Chewy from a “hold” rating to a “buy” rating in a research report on Saturday, February 14th. Wolfe Research set a $44.00 price target on Chewy in a research report on Monday, January 5th. Morgan Stanley reduced their target price on Chewy from $51.00 to $50.00 and set an “overweight” rating for the company in a report on Tuesday, March 10th. Guggenheim reiterated a “buy” rating and set a $45.00 price target on shares of Chewy in a research report on Thursday. Finally, Raymond James Financial raised Chewy from a “market perform” rating to an “outperform” rating and set a $28.00 price objective for the company in a research note on Thursday, February 19th. Seventeen investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $43.90.

Chewy Company Profile

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.