Chewy (CHWY) quarter year Chewy Financial Results Summary
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Chewy, Inc. (CHWY) Q2 2026: Revenue Growth and Profitability Improvement — Positive Outlook
Chewy, Inc. (NYSE: CHWY) reported its financial results for the second quarter of fiscal year 2026, revealing a notable performance that exceeded the previous year's results. The company achieved net sales of $3.33 billion, marking an increase of $229.6 million or 7.3% year over year. This growth is particularly impressive when considering the exclusion of contributions from SmartPak and Modern Animal, which would have resulted in a more modest increase of 5.7%.
Analyst View
This quarter can be considered a positive outcome for shareholders. The revenue growth, alongside improvements in profitability metrics, indicates that Chewy is effectively navigating the competitive landscape of the pet products market. The company’s ability to maintain a gross margin of 30.4%, consistent with the prior year, while also increasing its net margin to 2.4% (up 40 basis points YoY), reflects operational efficiency and effective cost management.
Key financial metrics from the quarter include:
- Net Income: $80.5 million, an increase of $18.5 million or 29.8% YoY.
- Basic Earnings Per Share (EPS): $0.20, up $0.05 from $0.15 in Q2 2025.
- Diluted EPS: $0.20, an increase of $0.06 from $0.14 in the same quarter last year.
- Adjusted EBITDA: $226.7 million, reflecting an increase of $43.4 million or 23.7% YoY, with an adjusted EBITDA margin of 6.8%, up 90 basis points from the previous year.
The company also reported an adjusted net income of $148.8 million, which is an increase of $7.7 million or 5.4% year over year. Adjusted basic and diluted EPS were $0.37 and $0.36, respectively, both showing increases of $0.03 from the prior year.
Shareholder Returns and Guidance
Chewy's management has expressed confidence in the company's trajectory, leading to an upward revision of its full-year revenue and profitability outlook. Notably, the company has also initiated a share repurchase program, repurchasing $400 million worth of common stock during the quarter, which is a significant move aimed at enhancing shareholder value.
Forward-Looking Catalysts
Investors should keep an eye on the upcoming quarters for continued growth in customer engagement and revenue. The company’s focus on expanding its product offerings and enhancing customer experience through technology will be crucial. Additionally, any updates on the integration of SmartPak and Modern Animal into Chewy's core operations could provide further insights into future growth potential.
In conclusion, Chewy's Q2 2026 results demonstrate a robust performance that not only beats the previous year's figures but also sets a positive tone for the remainder of the fiscal year. The combination of revenue growth, improved profitability, and strategic capital allocation positions Chewy favorably in the competitive pet products market.
Here are the extracted tables from the press release:
CONDENSED CONSOLIDATED BALANCE SHEETS (in millions, except share and per share data)
Note: All amounts are in millions.
| August 2, 2026 | February 1, 2026 | |
|---|---|---|
| Assets | ||
| Current assets: | ||
| Cash and cash equivalents | $611.0 | $860.1 |
| Marketable securities | 1.2 | 18.7 |
| Accounts receivable | 232.1 | 222.2 |
| Inventories | 924.7 | 864.8 |
| Prepaid expenses and other current assets | 76.3 | 70.0 |
| Total current assets | 1,845.3 | 2,035.8 |
| Property and equipment, net | 624.8 | 552.3 |
| Intangible assets, net | 149.7 | 0.3 |
| Operating lease right-of-use assets | 482.1 | 467.9 |
| Goodwill | 334.1 | 39.4 |
| Deferred tax assets | 264.7 | 232.2 |
| Other non-current assets | 39.9 | 38.5 |
| Total assets | $3,740.6 | $3,366.4 |
| Liabilities and stockholders’ equity | ||
| Current liabilities: | ||
| Trade accounts payable | $1,166.0 | $1,221.4 |
| Accrued expenses and other current liabilities | 1,033.4 | 1,080.2 |
| Current portion of long-term debt | 3.0 | — |
| Total current liabilities | 2,202.4 | 2,301.6 |
| Operating lease liabilities | 527.2 | 518.7 |
| Long-term debt, net | 588.7 | — |
| Other long-term liabilities | 51.8 | 48.2 |
| Total liabilities | 3,370.1 | 2,868.5 |
| Stockholders’ equity: | ||
| Preferred stock, $0.01 par value per share, 5,000,000 shares authorized, no shares issued and outstanding as of August 2, 2026 and February 1, 2026 | — | — |
| Class A common stock, $0.01 par value per share, 1,500,000,000 shares authorized, 224,993,295 and 238,647,144 shares issued and outstanding as of August 2, 2026 and February 1, 2026, respectively | 2.2 | 2.4 |
| Class B common stock, $0.01 par value per share, 395,000,000 shares authorized, 176,478,229 and 176,478,229 shares issued and outstanding as of August 2, 2026 and February 1, 2026, respectively | 1.8 | 1.8 |
| Additional paid-in capital | 1,550.7 | 1,852.9 |
| Accumulated deficit | -1,184.8 | -1,360.1 |
| Accumulated other comprehensive income | 0.6 | 0.9 |
| Total stockholders’ equity | 370.5 | 497.9 |
| Total liabilities and stockholders’ equity | $3,740.6 | $3,366.4 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (in millions, except per share data)
Note: All amounts are in millions.
| 13 Weeks Ended | 26 Weeks Ended | ||||
|---|---|---|---|---|---|
| August 2, 2026 | August 3, 2025 | August 2, 2026 | August 3, 2025 | ||
| Net sales | $3,330.2 | $3,104.2 | $6,687.4 | $6,220.2 | |
| Cost of goods sold | 2,319.0 | 2,162.0 | 4,664.8 | 4,354.2 | |
| Gross profit | 1,011.2 | 942.2 | 2,022.6 | 1,866.0 | |
| Operating expenses | 704.4 | 671.9 | 1,381.2 | 1,325.0 | |
| Total operating expenses | 919.2 | 872.5 | 1,802.1 | 1,719.4 | |
| Income from operations | 92.0 | 69.7 | 220.5 | 146.6 | |
| Interest and other income, net | 19.9 | 4.3 | 22.7 | 5.3 | |
| Income before income tax | 111.9 | 74.0 | 243.2 | 151.9 | |
| Income tax provision | 31.4 | 12.0 | 67.9 | 27.5 | |
| Net income | $80.5 | $62.0 | $175.3 | $124.4 | |
| Comprehensive income | $80.2 | $62.2 | $175.0 | $125.0 | |
| Earnings per share attributable to common Class A and Class B stock | Basic | $0.20 | $0.15 | $0.43 | $0.30 |
| Diluted | $0.20 | $0.14 | $0.42 | $0.29 | |
| Weighted-average shares used to compute earnings per share: | Basic | 406.4 | 414.2 | 410.1 | 413.9 |
| Diluted | 410.1 | 428.4 | 414.6 | 426.8 |
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