r/options
Chewy is proving it can grow without sacrificing profitability.
Chewy's Q1 FY2026 earnings beat expectations with revenue growth, customer additions, and record margin expansion.
- Revenue and EPS beat expectations, demonstrating resilient demand and top-line growth.
- Gross, net, and EBITDA margins all expanded significantly, reaching record Q1 profitability.
- Added nearly 200,000 net customers, proving strong customer acquisition despite a tough consumer environment.
$CHWY Q1 FY2026:
Revenue: $3.36B vs. $3.35B expected
Revenue growth: +7.7%
Adjusted EPS: $0.43 vs. $0.42 expected
EPS surprise: +2.4%
Gross margin: 30.1%, up 50 bps
Adjusted EBITDA: $253.1M
Chewy added nearly 200,000 net customers in the quarter, showing demand is still holding up even in a tougher consumer environment.
Margins also moved higher.
Gross margin expanded 50 basis points.
Net margin expanded 80 basis points.
Adjusted EBITDA margin expanded 130 basis points to 7.5%, marking record Q1 profitability.
Net income rose to $94.8M, while diluted EPS increased to $0.23 from $0.15 last year.
Adjusted net income reached $179.9M.
Chewy grew sales, added customers, expanded margins, and delivered record profitability for the quarter.
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