Shares of Chewy Inc (NYSE:CHWY) rose over 14% at the open on Wednesday after the online pet retailer reported fourth-quarter and full-year results that highlighted record profitability and issued a confident outlook.
Chewy posted full-year net sales of $12.6 billion, up 8.3% on a normalized basis, while fourth-quarter revenue came in at $3.26 billion, supported by what the company described as high-quality growth.
Adjusted EBITDA for the year rose 26% to $719.2 million, with margins expanding to 5.7%. The company also reported record free cash flow of $562.4 million.
Key operating metrics showed continued customer engagement. Active customers rose 4% year-over-year to 21.3 million, while net sales per active customer reached $591. Autoship, Chewy’s subscription-based offering, accounted for 83.3% of total sales.
Looking ahead, Chewy forecast fiscal 2026 net sales between $13.6 billion and $13.75 billion, implying continued growth and margin expansion.
“We exited 2025 from a position of real strength,” CEO Sumit Singh said, adding that the company’s performance highlights the durability of its business model.
Analysts at Jefferies said the results marked a solid end to the fiscal year, pointing to sequential growth in active customers and continued progress in margins. The brokerage noted that Chewy’s guidance for 8% to 9% revenue growth and further margin expansion came in ahead of expectations, supported by momentum in Autoship, healthcare offerings and its Chewy+ membership program.