Chewy (CHWY) Q4 2026 earnings summary

Executive summary

• Fiscal 2025 net sales reached $12.6B, up 8.3% year-over-year on a normalized basis, with Q4 net sales at $3.27B, and active customers rising 4% to 21.3M, including 813K net adds.

• Autoship sales totaled $10.5B for the year, representing 84% of Q4 net sales and growing 14% year-over-year.

• Adjusted EBITDA for FY25 was $719M (5.7% margin), up 26% year-over-year, with free cash flow at $562.4M and year-end cash of $879M.

• Strategic priorities include scaling Chewy Vet Care, expanding private brands with Chewy Made, and embedding AI across operations for efficiency and customer experience.

• Entering 2026, focus remains on disciplined execution, profitable growth, margin expansion, and robust free cash flow to support long-term shareholder value.

Financial highlights

• Q4 2025 net sales exceeded $3.26B, with full year net sales at $12.6B, up 8.1% in Q4 and 8.3% for the year on a normalized basis.

• Q4 gross margin was 29.4%; full year gross margin 29.8%, expanding 90 bps in Q4 and 60 bps for the year.

• Adjusted net income for FY25 was $540.5M, with adjusted diluted EPS of $1.27; Q4 adjusted net income was $150M.

• Q4 adjusted EBITDA was $162M (5% margin); full year adjusted EBITDA $719M (5.7% margin), up 26% year-over-year.

• Record free cash flow: $232M in Q4, $562.4M for the year; ended with $879M in cash equivalents and no debt.

Outlook and guidance

• FY26 net sales expected between $13.6B-$13.75B, or 8%-9% year-over-year growth; SmartEquine to contribute ~$80M.

• Full year 2026 adjusted EBITDA margin projected at 6.6%-6.8%, with adjusted EBITDA of $900M-$930M.

• Q1 2026 net sales guidance: $3.33B-$3.36B (7%-8% growth); Q1 expected to be the lowest growth quarter.

• No price inflation assumed in 2026; active customer growth expected in low single digits, with net adds consistent throughout the year.

• Share-based compensation and tax rate expected to be flat; net interest income $10M-$15M; effective tax rate 20%-22%.