Chewy (NYSE:CHWY) Releases Quarterly Earnings Results, Misses Expectations By $0.19 EPS

Chewy (NYSE:CHWY) posted its quarterly earnings data on Wednesday. The company reported $0.09 EPS for the quarter, missing analysts’ consensus estimates of $0.28 by ($0.19), RTT News reports. Chewy had a net margin of 1.77% and a return on equity of 53.48%. The firm had revenue of $3.26 billion for the quarter, compared to analysts’ expectations of $3.26 billion. During the same quarter last year, the company posted $0.28 EPS. The firm’s revenue was up .5% compared to the same quarter last year.

Here are the key takeaways from Chewy’s conference call:

• Chewy closed FY2025 with >$12.6B in net sales (≈8.3% YoY), expanded gross margin to 29.8%, delivered record free cash flow of $562.4M, and grew adjusted EBITDA ~26% to $719M, highlighting strong operating leverage.
• Management guided 2026 net sales of $13.6B–$13.75B (8%–9% growth) and an adjusted EBITDA margin of 6.6%–6.8% (≈100 bps expansion), noting Q1 as the low point with growth expected to accelerate into Q2–Q3.
• Chewy expects AI deployments across purchase experience, customer service, fulfillment, pharmacy and marketing to yield a low‑tens of millions in 2026 and a pathway to ~$50M+ annualized savings in 2027, reducing structural cost to serve.
• Strategic initiatives include scaling Chewy Vet Care (18 clinics across five states) and launching the unified private‑brand platform Chewy Made to expand consumables penetration, NSPAC and higher‑margin private‑brand mix.
• Strong financial position with ~ $1.7B liquidity, no debt, and ongoing capital return priority—Chewy repurchased ~6.8M shares for ~$257M in 2025 and expects buyback activity to increase.

Chewy Stock Up 1.8%

CHWY stock opened at $27.05 on Friday. The business’s 50-day moving average price is $27.08 and its 200-day moving average price is $32.30. The stock has a market cap of $11.23 billion, a P/E ratio of 52.03, a PEG ratio of 1.80 and a beta of 1.60. Chewy has a twelve month low of $22.74 and a twelve month high of $48.62.

Insider Transactions at Chewy

In other Chewy news, CTO Satish Mehta sold 13,013 shares of the firm’s stock in a transaction that occurred on Monday, February 2nd. The shares were sold at an average price of $28.99, for a total transaction of $377,246.87. Following the sale, the chief technology officer owned 273,835 shares in the company, valued at approximately $7,938,476.65. This trade represents a 4.54% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 0.43% of the company’s stock.

Institutional Trading of Chewy

A number of hedge funds and other institutional investors have recently modified their holdings of CHWY. Wellington Management Group LLP raised its position in shares of Chewy by 295.9% during the 3rd quarter. Wellington Management Group LLP now owns 17,622,768 shares of the company’s stock valued at $712,841,000 after purchasing an additional 13,171,325 shares during the period. Viking Global Investors LP boosted its holdings in Chewy by 146.9% in the 4th quarter. Viking Global Investors LP now owns 13,536,645 shares of the company’s stock worth $447,386,000 after buying an additional 8,052,955 shares during the period. AQR Capital Management LLC increased its stake in Chewy by 10.0% in the 4th quarter. AQR Capital Management LLC now owns 11,218,840 shares of the company’s stock worth $370,558,000 after buying an additional 1,022,694 shares in the last quarter. Morgan Stanley increased its stake in Chewy by 33.8% in the 4th quarter. Morgan Stanley now owns 7,660,258 shares of the company’s stock worth $253,172,000 after buying an additional 1,937,014 shares in the last quarter. Finally, State Street Corp raised its holdings in Chewy by 3.0% during the fourth quarter. State Street Corp now owns 6,655,547 shares of the company’s stock valued at $219,966,000 after acquiring an additional 193,947 shares during the period. 93.09% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting Chewy

Here are the key news stories impacting Chewy this week:

• Positive Sentiment: Company issued an upbeat 2026 revenue and margin outlook after Q4 results (sales roughly in line, guidance raised/clarified), which underpinned the rally. CHWY Stock Up 13% Following Solid Q4 Performance
• Positive Sentiment: Autoship strength, margin expansion and AI-driven efficiency were highlighted by management and analysts as drivers of improving EBITDA and free‑cash‑flow conversion. These operational improvements are the main near‑term catalyst for higher profitability expectations. Chewy Posts Solid Q4, Indicates AI-Related Efficiency Benefits Ahead
• Positive Sentiment: CEO Sumit Singh publicly sounded “bullish” on 2026 in interviews, reinforcing confidence in consumer engagement and the company’s growth levers (vet care, private label, advertising). That tone helped investor sentiment. Watch CNBC’s full interview with Chewy CEO Sumit Singh
• Neutral Sentiment: Industry/partner view on Chewy Vet Care’s team‑based practice model offers a constructive, long‑term growth read but is not an immediate earnings driver. Investors should treat it as strategic optionality. A veterinarian’s perspective on Chewy Vet Care’s team‑based practice model
• Neutral Sentiment: Coverage of the quarter is mixed: some outlets frame adjusted metrics as a beat while others highlight an EPS miss on certain bases — investors should focus on recurring metrics (Autoship %, FCF, adjusted EBITDA) rather than a single EPS line. Chewy Q4 Earnings: How Key Metrics Compare to Wall Street Estimates
• Negative Sentiment: Several analysts adjusted price targets after the print (some cuts despite maintaining buy/overweight ratings), reflecting a more cautious near‑term view on upside; that could cap momentum if revisions continue. These Analysts Cut Their Forecasts On Chewy Following Q4 Results
• Negative Sentiment: Insider sales and notable institutional trimming in recent quarters are a structural headwind to the stock’s near‑term supply/demand picture — monitor institutional flows. Chewy jumps 15% as investors position for fiscal Q4 and full‑year results

Analyst Ratings Changes

A number of equities research analysts have issued reports on CHWY shares. BNP Paribas Exane restated a “neutral” rating and set a $28.00 price target (down from $38.00) on shares of Chewy in a research note on Thursday. Piper Sandler reissued an “overweight” rating on shares of Chewy in a report on Thursday, February 5th. TD Cowen boosted their target price on shares of Chewy from $39.00 to $42.00 and gave the company a “buy” rating in a research report on Thursday. JPMorgan Chase & Co. reduced their target price on shares of Chewy from $46.00 to $40.00 and set an “overweight” rating for the company in a report on Thursday. Finally, Needham & Company LLC reiterated a “hold” rating on shares of Chewy in a research report on Thursday, December 11th. Seventeen analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. According to data from MarketBeat.com, Chewy presently has a consensus rating of “Moderate Buy” and an average target price of $43.90.

About Chewy

Chewy, Inc (NYSE: CHWY) is a leading e-commerce retailer specializing in pet food, supplies and services. The company offers a comprehensive assortment of products for dogs, cats, fish, birds and other small animals, including prescription medications, veterinary health products, grooming essentials and toys. Through its online platform and mobile app, Chewy provides an intuitive shopping experience with features such as Autoship, ensuring regular deliveries of pet essentials at schedule intervals.

Founded in 2011 by Ryan Cohen and Michael Day, Chewy initially operated under the name Mr.