Chewy Q1′ 2026 Earnings – Beats Expectations

Chewy, a trusted destination for pet parents and partners everywhere, has released its financial results for the first quarter of fiscal year 2026 ended May 3, 2026.

Chewy Inc. (NYSE:CHWY) reported first quarter results that exceeded analyst expectations, sending shares around 1.8% higher premarket on Wednesday.

Adjusted earnings per share of $0.43 beat the consensus estimate of $0.24 by $0.19. Revenue reached $3.36 billion, slightly above the $3.35 billion analyst estimate, representing a 7.7% increase YoY from $3.12 billion in the prior year period.

The company’s adjusted EBITDA rose 31.3% to $253.1 million, with adjusted EBITDA margin expanding 130 basis points to 7.5%. Gross margin improved 50 basis points YoY to 30.1%. Chewy added nearly 200,000 net customers during the quarter, bringing total active customers to 21.5 million, up 3.6% YoY. Shares rose 1.8% following the announcement.

“Chewy continues to outperform the pet category while expanding profitability and free cash flow,” said Sumit Singh, Chief Executive Officer of Chewy. “Our first quarter results demonstrate the resilience of our business model and the strength of our execution, as we delivered 7.7% net sales growth, nearly 200,000 net customer additions, and record profitability in the quarter, despite a more dynamic consumer backdrop.”

The company generated $108.5 million in operating cash flow and $70.8 million in free cash flow, up 25.6% and 45.4% YoY, respectively. Autoship customer sales, which represent recurring subscription revenue, grew 10.5% to $2.83 billion and accounted for 84.4% of net sales, up from 82.2% in the prior year period.

Fiscal Q1 2026 Highlights: Earnings Presentation – CHWY-Q1-2026-Earnings-Presentation

• Net sales of $3.36 billion increased 7.7 percent year over year

• Gross margin of 30.1 percent increased 50 basis points year over year

• Autoship sales constitute 84% of sales, growth of over 10% over PY same period

• Net income of $94.8 million, including share-based compensation expense and related taxes of $73.4 million

• Net margin of 2.8 percent increased 80 basis points year over year

• Basic earnings per share of $0.23, an increase of $0.08 year over year

• Diluted earnings per share of $0.23, an increase of $0.08 year over year

• Adjusted EBITDA ⁽¹⁾ of $253.1 million, an increase of $60.4 million year over year

• Adjusted EBITDA margin ⁽¹⁾ of 7.5 percent increased 130 basis points year over year

• Adjusted net income ⁽¹⁾ of $179.9 million, an increase of $31.0 million year over year

• Adjusted basic earnings per share ⁽¹⁾ of $0.43, an increase of $0.07 year over year

• Adjusted diluted earnings per share ⁽¹⁾ of $0.43, an increase of $0.08 year over year

“Chewy continues to outperform the pet category while expanding profitability and free cash flow,” said Sumit Singh, Chief Executive Officer of Chewy. “Our first quarter results demonstrate the resilience of our business model and the strength of our execution, as we delivered 7.7% net sales growth, nearly 200,000 net customer additions, and record profitability in the quarter, despite a more dynamic consumer backdrop. We remain confident in our ability to gain market share, deliver profitable growth, and create long-term shareholder value.”