Chewy 2026 Q3 Earnings Net Income Surges 1417.9%

Chewy (CHWY) delivered results that exceeded expectations, with revenue growth outpacing market forecasts and profitability metrics showing marked improvement. The company raised full-year sales guidance, reflecting confidence in its strategic initiatives and operational resilience.

Revenue

Chewy’s total revenue grew 8.3% year-over-year to $3.12 billion in Q3 2026, driven by robust demand across its product categories. Consumables remained the largest contributor, generating $2.18 billion in sales, while hardgoods and other segments added $348.60 million and $592.10 million, respectively. The Autoship program and unit volume growth were pivotal in sustaining this momentum.

Earnings/Net Income

The company’s earnings demonstrated dramatic acceleration, with EPS rising 1300.0% to $0.14 in Q3 2026 compared to $0.01 in the prior year. Net income surged to $59.20 million, a 1417.9% increase from $3.90 million in Q3 2025. This performance underscores Chewy’s ability to scale profitability amid competitive pressures.

Post-Earnings Price Action Review

A 30-day post-earnings strategy of holding Chewy shares after its Q3 report yielded a 2.07% return, underperforming the benchmark by 11.41% but delivering a 13.49% excess return. Despite a low Sharpe ratio of 0.03, the strategy avoided losses during the backtest period, with a maximum drawdown of 0%.

CEO Commentary

CEO Sumit Singh highlighted Q3’s structural resilience, noting 8% net sales growth driven by Autoship and unit volume expansion. Margins improved by 50 basis points to 29.8%, reflecting operational efficiency gains.

Additional News

Recent non-earnings news includes analyst commentary positioning Chewy as a potential buy amid compressed multiples. A Yahoo Finance article emphasized its high customer retention and expansion into high-margin services like pet healthcare and private labels. Additionally, a Motley Fool analysis noted underperformance relative to the S&P 500 but cited management’s focus on margin expansion as a long-term catalyst.