Chewy 2026 Q3 Earnings Net Income Surges 1417.9% Amid Revenue Growth

Chewy (CHWY) reported fiscal 2026 Q3 earnings on Dec 10, 2025, with revenue rising 8.3% to $3.12 billion and net income surging 1417.9% to $59.2 million. The company outperformed expectations and raised full-year 2025 sales guidance to $12.58–12.6 billion.

Revenue

Chewy’s total revenue increased by 8.3% to $3.12 billion in 2026 Q3, driven by strong performance across its segments. Consumables contributed the largest share at $2.18 billion, while hardgoods and other categories added $348.60 million and $592.10 million, respectively. The Autoship program, a key growth driver, expanded 13.6% to $2.61 billion, accounting for 83.9% of total net sales.

Earnings/Net Income

Chewy’s EPS soared 1300% to $0.14 in 2026 Q3 from $0.01 in 2025 Q3, while net income reached $59.2 million, up from $3.9 million. The significant EPS increase underscores the company’s improved profitability and operational efficiency.

Post-Earnings Price Action Review

The strategy of buying Chewy shares post-earnings and holding for 30 days generated a 20.96% return over three years, outperforming the benchmark return of 74.35%. This suggests the strategy effectively captured gains while mitigating market volatility.

CEO Commentary

CEO Sumit Singh highlighted 8% revenue growth driven by Autoship expansion and margin resilience, with adjusted EBITDA at 5.8%. Strategic priorities include scaling automation, health services, and mobile app enhancements to drive long-term margin expansion.

Guidance

Chewy raised Q4 2025 net sales guidance to $3.24–3.26 billion and full-year 2025 net sales to $12.58–12.6 billion. Adjusted EBITDA margin is targeted at 5.6–5.7%, with Q4 adjusted diluted EPS expected at $0.24–0.27.

Additional News

Chewy announced the acquisition of SmartEquine, LLC to expand equine health offerings, reinforcing its pet healthcare strategy. CEO Sumit Singh reaffirmed leadership, emphasizing continued focus on margin expansion and customer retention. Additionally, the company repurchased $55 million in shares, reflecting confidence in its valuation and long-term growth prospects.

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