Chewy CHWY 2026Q1 Earnings Preview Upside Expected on Autoship Program Momentum

Forward-Looking Analysis
Chewy is anticipated to release its 2026Q1 earnings, with a consensus EPS forecast of $0.17, compared to last year's $0.15 for the same quarter. Analysts hold a "Strong Buy" consensus on Chewy, backed by 24 ratings. The company's performance in fiscal year 2024 was strong, with notable growth in revenue, customer base, and profitability, particularly through its Autoship program and Vet Care Clinics. Autoship represented 80.6% of Q4 net sales, showing a solid 21% growth in the fourth quarter and nearly 11% for the full year. The company’s guidance for 2025 reflects continued momentum, with net sales projected between $12.3 billion and $12.45 billion, marking a 6% to 7% year-over-year increase. Chewy also projects an adjusted EBITDA margin expansion to between 5.4% and 5.7%, highlighting a positive outlook for the upcoming quarter driven by consistent sales growth and operational efficiencies.

Historical Performance Review
In the fourth quarter of 2025, Chewy reported revenues of $3.25 billion, and a net income of $22.79 million, resulting in an EPS of $0.06. The company achieved a gross profit of $926 million, showcasing a solid financial performance. This quarter's results indicate a turnaround in profitability, enhancing investor confidence in Chewy's ability to maintain its growth trajectory.

Additional News
Recent updates on Chewy indicate a significant rally in its stock price, with a 150% increase noted by mid-May 2025. Analysts from UBS suggest that the upcoming earnings release could act as a "meaningful catalyst" for the stock. Chewy has also continued its expansion efforts with the success of its Chewy Vet Care Clinics and its sponsored ads business, which has scaled to approximately 1% of net sales. Chewy's strategic initiatives to broaden its service offerings and enhance customer retention through these programs reflect its commitment to sustaining growth and improving financial performance.

Summary & Outlook
Chewy's overall financial health remains robust with strong revenue growth, highlighted by its successful Autoship program and Vet Care Clinics. The company's strategic expansion into new services and improved operational efficiencies are key growth catalysts. The positive analyst sentiment and projected financial metrics for 2025 suggest a bullish outlook. Despite some concerns over external dependencies for hard goods growth, Chewy's consistent earnings performance and expansion strategy position it well for future success. As the company continues its trajectory, investors can expect sustained momentum in earnings and market presence.