Chewy Inc. (CHWY) reported fourth-quarter earnings that surpassed analysts' expectations, fueled by a 12.7% year-over-year increase in active customers and a 10.3% rise in revenue. The stock jumped 14.2% in after-hours trading.
- Adjusted EPS of $0.47 beat estimates of $0.42 by 11.9%
- Revenue reached $1.48 billion, up 10.3% YoY
- Active customers increased to 24.9 million, a 12.7% year-over-year rise
- Average order value grew 6.4% YoY
- Gross profit rose 15.8% YoY
- Stock surged 14.2% in after-hours trading
Chewy Inc. (CHWY) delivered a standout earnings performance, sending its shares soaring in after-hours trading. The company reported adjusted earnings per share of $0.47, exceeding the consensus estimate of $0.42 by 11.9%. Revenue reached $1.48 billion, marking a 10.3% year-over-year increase and surpassing the projected $1.45 billion. The results were driven by a significant acceleration in customer acquisition, with the number of active customers rising to 24.9 million, a 12.7% increase from the same quarter last year. The company’s growth momentum was further bolstered by improvements in customer retention and average order value, which rose 6.4% year-over-year. Chewy also reported a 15.8% year-over-year increase in gross profit, reflecting stronger operational efficiency and margin expansion. The company attributed the performance to enhanced product offerings, targeted marketing campaigns, and continued digital engagement initiatives that increased customer lifetime value. The market reacted positively, with Chewy’s stock gaining 14.2% in extended trading. Investors appear encouraged by the company’s ability to grow both revenue and customer base amid a competitive pet care market. The results suggest that Chewy’s shift toward personalized customer experiences and data-driven marketing is beginning to yield measurable returns. Analysts noted that the company’s improved gross margin and sustained customer growth position it well for continued expansion in 2026.