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

Chewy (NYSE:CHWY) posted its quarterly earnings data on Wednesday. The company reported $0.27 EPS for the quarter, missing the consensus estimate of $0.28 by ($0.01), FiscalAI reports. The company had revenue of $3.26 billion during the quarter, compared to analysts’ expectations of $3.26 billion. Chewy had a return on equity of 56.78% and a net margin of 1.64%.The company’s revenue for the quarter was up .5% on a year-over-year basis. During the same quarter last year, the company earned $0.28 earnings per share.

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 Stock Performance

Shares of Chewy stock opened at $25.99 on Wednesday. The company has a market capitalization of $10.79 billion, a PE ratio of 55.90, a P/E/G ratio of 1.60 and a beta of 1.60. The company has a 50-day simple moving average of $27.30 and a two-hundred day simple moving average of $32.38. Chewy has a one year low of $22.74 and a one year high of $48.62.

Wall Street Analyst Weigh In

CHWY has been the topic of several analyst reports. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Chewy in a report on Wednesday, January 21st. Wedbush set a $42.00 target price on Chewy and gave the company an “outperform” rating in a research report on Wednesday, December 10th. Piper Sandler reiterated an “overweight” rating on shares of Chewy in a research report on Thursday, February 5th. Raymond James Financial upgraded shares of Chewy from a “market perform” rating to an “outperform” rating and set a $28.00 price objective on the stock in a research report on Thursday, February 19th. Finally, The Goldman Sachs Group increased their price target on Chewy from $44.00 to $52.00 and gave the stock a “buy” rating in a report on Thursday, December 11th. Seventeen investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $45.55.

Insider Activity

In other news, CTO Satish Mehta sold 13,013 shares of the company’s 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 transaction, the chief technology officer directly owned 273,835 shares of the company’s stock, valued at approximately $7,938,476.65. This represents a 4.54% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Insiders own 0.43% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in CHWY. Osterweis Capital Management Inc. purchased a new stake in shares of Chewy during the second quarter valued at $30,000. Los Angeles Capital Management LLC purchased a new position in Chewy in the 4th quarter worth $31,000. Aster Capital Management DIFC Ltd acquired a new stake in Chewy during the 4th quarter worth about $45,000. EverSource Wealth Advisors LLC lifted its position in Chewy by 412.2% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,091 shares of the company’s stock worth $46,000 after acquiring an additional 878 shares during the period. Finally, Danske Bank A S purchased a new stake in Chewy during the 3rd quarter valued at about $53,000. Hedge funds and other institutional investors own 93.09% of the company’s stock.

Chewy News Summary

Here are the key news stories impacting Chewy this week:

• Positive Sentiment: Management issued an upbeat outlook and highlighted profit and revenue gains for Q4 and FY2025, which investors viewed as constructive for growth and margins. Chewy issues upbeat outlook as profit, revenue rise
• Positive Sentiment: Press release and company slide deck confirmed fiscal Q4 results and full‑year metrics (including FY2025 revenue and margin progress) and provided forward guidance that supported the rally. Chewy Announces Fiscal Fourth Quarter and Full Year 2025 Financial Results
• Positive Sentiment: Several outlets reported a strong market reaction in premarket trading—some noted double‑digit jumps—after adjusted earnings/guidance, amplifying buying interest. Chewy shares surge on fourth quarter earnings beat
• Neutral Sentiment: Q4 revenue came in roughly in line with Street estimates at $3.26B (flat YoY) and adjusted EPS was essentially unchanged year‑over‑year, so top‑line growth remained modest. Chewy Posts Q4 CY2025 Sales In Line With Estimates
• Neutral Sentiment: Analyst coverage stayed mixed but supportive in places—TD Cowen reiterated a Buy rating citing steady growth and expanding margins, which helps sentiment but doesn’t erase near‑term risks. TD Cowen reiterates Chewy stock Buy rating ahead of earnings
• Negative Sentiment: Some outlets and data engines flagged a slight EPS miss (company reported $0.27 vs. some consensus $0.28), which keeps scrutiny on profitability and near‑term execution. Chewy (CHWY) Q4 Earnings Miss Estimates
• Negative Sentiment: Shares had been trading near 52‑week lows and are down significantly year‑to‑date, reflecting investor skepticism about sustained top‑line acceleration. Chewy stock hits 52-week low
• Negative Sentiment: Unusual options activity—elevated put buying—signals some traders are betting on further downside or volatility in the near term. Chewy Sees Unusually Large Options Volume
• Positive Sentiment: Promotional and seasonal merchandising (spring sales) reported by consumer sites could help near‑term revenue/traffic during a key shopping period. We love these spring pet sales from Chewy, Amazon and more

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.