Chewy Beats Q4 Expectations, Shares Surge on 2026 Guidance

Chewy Inc., the online pet supplies retailer, reported stronger-than-expected fourth-quarter results and issued upbeat guidance for fiscal 2026, sending its shares surging in premarket trading on Wednesday. The company announced the earnings after markets closed on Tuesday, with its stock opening at $25.96, up from the previous close of $23.45, and last trading at $26.15 amid high volume of over 8 million shares.

For the quarter ended February 1, Chewy posted revenue of $3.26 billion, matching analyst estimates and reflecting a 0.5 percent increase from the year-earlier period on a reported basis. Adjusted for a consistent 13-week comparison, revenue grew 8.1 percent, driven by sustained customer demand and expanded product offerings. Adjusted earnings per share came in at $0.27, slightly below the consensus expectation of $0.28 but marking an improvement in core profitability metrics. Gross margins expanded 90 basis points to 29.4 percent, while adjusted EBITDA rose to $162.3 million, up from the prior year, with the margin strengthening to 5.0 percent. Net income totaled $39.2 million, or 9 cents per diluted share, nearly doubling the year-ago figure.