Did CHWY's 2025 earnings exceed expectations overall?

Chewy's 2025 earnings exceeded expectations overall, as evidenced by the company's strong financial performance and the positive outlook from analysts.

1. Revenue Performance: Chewy's total revenue for 2025 was $3.25 billion, surpassing the analyst expectation of $3.20 billion. This marked a 14.9% year-over-year increase in net sales, which was a key indicator of the company's robust business growth.

2. Profitability: The company's gross profit increased by 16% year-over-year to $926 million, with a gross margin expanding by 30 basis points to 28.5% compared to the previous year's fourth quarter. This reflected improved operational efficiency and profitability.
3. Cash Flow and Financial Health: Chewy's net cash provided by operating activities totaled $207.5 million, and free cash flow was reported at $156.6 million, indicating healthy cash flow and financial stability.
4. Analyst Optimism: Despite macroeconomic challenges and concerns over consumer spending, analysts remained optimistic about Chewy's resilience and growth potential. The company had beaten EPS estimates in seven of the last nine quarters, demonstrating its ability to deliver strong financial results.
5. Future Outlook: Looking ahead, Chewy projected net sales between $3.06 billion and $3.09 billion for the first quarter of fiscal 2025, reflecting a 6-7% year-over-year growth. This suggested that the company expected continued growth, albeit at a more moderate pace.

In conclusion, Chewy's 2025 earnings exceeded expectations in terms of revenue and profitability, and the company's strong financial performance and growth prospects supported a positive outlook from analysts.