Chewy Shares Rally 12% Despite $0.27 EPS Miss, $13.6–13.75B 2026 Sales Forecast
Chewy reported Q4 revenue of $3.26 billion (+0.5% YoY) and adjusted EPS of $0.27, missing estimates by $0.01, yet its stock surged over 12% on a fiscal 2026 sales forecast of $13.6–13.75 billion versus $13.59 billion consensus. CEO Sumit Singh said 80–85% of budgets go to food and health while AI initiatives advance.
1. Q4 Financial Performance
Chewy delivered revenue of $3.26 billion, a 0.5% increase year-over-year, and reported adjusted EPS of $0.27, missing consensus by $0.01. Despite the EPS shortfall, the stock rose over 12% on investor confidence in the company’s underlying business stability.
2. Fiscal 2026 Outlook and Analyst Reactions
The company forecast fiscal 2026 sales of $13.6–13.75 billion, surpassing the $13.59 billion consensus estimate. However, Evercore ISI flagged a loss of approximately 150,000 active customers in Q4, and Citi noted slightly lower customer spend per transaction.
3. Customer Spending Trends
CEO Sumit Singh highlighted that 80–85% of pet owners’ budgets now go towards food and healthcare, with only 15% allocated to supplies and discretionary items, reflecting a shift away from new toys and gear as inflation pressures persist.
4. AI and Growth Initiatives
Singh described AI as a “force multiplier” and detailed ongoing efforts to deploy it at scale across operations. He also expressed optimism that new veterinary clinics and automated warehouses will drive future market share gains.