Chewy, Inc. (CHWY): Results of Operations and Financial Condition
Chewy, Inc. (CHWY) filed an SEC Form 8-K — Results of Operations and Financial Condition. Chewy Announces Second Quarter 2026 Financial Results PLANTATION, Fla., September 9, 2026 (BUSINESS WIRE) — Chewy, Inc. (NYSE: CHWY) (“Chewy”), a trusted destination for pet parents and partners everywhere, has released its financial results for the second quarter of fiscal year
How this was made
The 30-second read
Why it matters
The earnings beat and guidance raise expectations for continued revenue growth and margin expansion, supporting a bullish stance.
Market read
Earnings beat and raised outlook are likely to drive short‑term buying interest in CHWY and benefit the broader pet‑care e‑commerce sector.
What to watch
Potential supply‑chain constraints and higher marketing spend could pressure margins later.
Chewy Announces Second Quarter 2026 Financial Results
Net sales increased 7.3 %, adjusted EBITDA increased 23.7 %, adjusted EBITDA margin expanded to 6.8 %, and GAAP net income increased 29.8 %. Management said net sales were at the high end of guidance and raised its full-year revenue and profitability outlook, although the filing did not provide the quantitative revised outlook.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net salesGAAP | $ 3,330.2 | – | 7.3 % |
| Cost of goods soldGAAP | 2,319.0 | – | – |
| Gross profitGAAP | 1,011.2 | – | – |
| Gross marginGAAP | 30.4 percent | – | stayed consistent year over year |
| Selling, general and administrativeGAAP | 704.4 | – | – |
| Advertising and marketingGAAP | 214.8 | – | – |
| Total operating expensesGAAP | 919.2 | – | – |
| Income from operationsGAAP | 92.0 | – | – |
| Interest and other income, netGAAP | 19.9 | – | – |
| Income before income tax provisionGAAP | 111.9 | – | – |
| Income tax provisionGAAP | 31.4 | – | – |
| Net incomeGAAP | $ 80.5 | – | 29.8 % |
| Net marginGAAP | 2.4 % | – | – |
| Earnings per share, basicGAAP | $ 0.20 | – | 33.3 % |
| Earnings per share, dilutedGAAP | $ 0.20 | – | 42.9 % |
| Adjusted EBITDAnon-GAAP | $ 226.7 | – | 23.7 % |
| Adjusted EBITDA marginnon-GAAP | 6.8 % | – | – |
| Adjusted net incomenon-GAAP | $ 148.8 | – | 5.5 % |
| Adjusted earnings per share, basicnon-GAAP | $ 0.37 | – | 8.8 % |
| Adjusted earnings per share, dilutednon-GAAP | $ 0.36 | – | 9.1 % |
| Net cash provided by operating activitiesGAAP | $ 137.4 | – | 2.6 % |
| Free cash flownon-GAAP | $ 89.5 | – | (15.5) % |
| Active customersother | 21.705 | – | 3.8 % |
| Net sales per active customerother | $ 602 | – | 1.9 % |
| Autoship customer salesother | $ 2,817.2 | – | 9.3 % |
| Autoship customer sales as a percentage of net salesother | 84.6 % | – | – |
| Weighted-average common shares used in computing earnings per share: BasicGAAP | 406.4 | – | – |
| Weighted-average common shares used in computing earnings per share: DilutedGAAP | 410.1 | – | – |
Capital returns
- Repurchases of common stock: (400.0) (in millions)
- Payments for tax withholdings related to vesting of share-based compensation awards: (68.7) (in millions)
What drove it
- Net sales increased 7.3 percent year over year, or 5.7 percent excluding SmartPak and Modern Animal contributions.
- Autoship customer sales increased 9.3 % to $ 2,817.2 and represented 84.6 % of net sales.
- Active customers increased 3.8 % to 21.705, while net sales per active customer increased 1.9 % to $ 602.
- Active customers include approximately 43 thousand active customers attributable to SmartPak and exclude customer additions related to the Modern Animal acquisition.
- Adjusted EBITDA increased $43.4 million year over year, while adjusted EBITDA margin increased 90 basis points year over year.
- The adjusted EBITDA reconciliation included net legal settlement proceeds of (24.0) and transaction related costs of 6.4, each in millions.
Concerns
- Free cash flow was $ 89.5, down (15.5) % from $ 105.9, as capital expenditures were (47.9) compared with (28.0), each in millions.
- Share-based compensation expense and related taxes were $85.9 million, compared with $79.1 million.
- Cash and cash equivalents were $ 611.0 (in millions) as of August 2, 2026, compared with $ 860.1 (in millions) as of February 1, 2026.
- The company recorded cash paid for acquisition of businesses, net of cash acquired of (552.8) (in millions) and long-term debt, net of 588.7 (in millions) as of August 2, 2026.
What to watch
- Quantitative full-year revenue and profitability guidance was not included in the filing despite management's statement that it raised the outlook.
- Sustainability of Autoship customer sales growth and Autoship customer sales as a percentage of net sales.
- Active-customer growth, net sales per active customer, and the contribution from SmartPak and Modern Animal.
- Capital-expenditure levels and free-cash-flow performance.
- Integration effects from the acquisition of businesses and the associated debt position.
Balance sheet and cash flow
- Cash and cash equivalents as of August 2, 2026: $ 611.0 (in millions); as of February 1, 2026: $ 860.1 (in millions).
- Marketable securities as of August 2, 2026: 1.2 (in millions); as of February 1, 2026: 18.7 (in millions).
- Inventories as of August 2, 2026: 924.7 (in millions); as of February 1, 2026: 864.8 (in millions).
- Total assets as of August 2, 2026: $ 3,740.6 (in millions); as of February 1, 2026: $ 3,366.4 (in millions).
- Current portion of long-term debt as of August 2, 2026: 3.0 (in millions); as of February 1, 2026: —.
- Long-term debt, net as of August 2, 2026: 588.7 (in millions); as of February 1, 2026: —.
- Total liabilities as of August 2, 2026: 3,370.1 (in millions); as of February 1, 2026: 2,868.5 (in millions).
- Net cash provided by operating activities for the 26 weeks ended August 2, 2026: 245.9 (in millions), compared to 220.3 (in millions).
- Capital expenditures for the 26 weeks ended August 2, 2026: (85.6) (in millions), compared to (65.7) (in millions).
- Cash paid for acquisition of businesses, net of cash acquired for the 26 weeks ended August 2, 2026: (552.8) (in millions).
- Proceeds from debt for the 26 weeks ended August 2, 2026: 811.7 (in millions).
- Principal repayments of debt for the 26 weeks ended August 2, 2026: (220.0) (in millions).
Analysis
Chewy reported a stronger second quarter, with net sales of $ 3,330.2 increasing 7.3 % from $ 3,104.2. The company said growth was 5.7 percent excluding SmartPak and Modern Animal contributions. Customer activity supported the result: active customers rose 3.8 % to 21.705, net sales per active customer rose 1.9 % to $ 602, and Autoship customer sales increased 9.3 % to $ 2,817.2. Autoship represented 84.6 % of net sales, compared with 83.0 % in the prior-year quarter.
Profitability improved meaningfully. Gross margin was 30.4 percent and stayed consistent year over year, while income from operations was 92.0 compared with 69.7. GAAP net income increased 29.8 % to $ 80.5, net margin was 2.4 % compared with 2.0 %, and diluted earnings per share was $ 0.20 compared with $ 0.14. Adjusted EBITDA increased 23.7 % to $ 226.7 and adjusted EBITDA margin reached 6.8 %, compared with 5.9 %. The adjusted EBITDA reconciliation included (24.0) of net legal settlement proceeds and 6.4 of transaction related costs, each in millions.
Cash generation was positive but quarterly free cash flow declined. Net cash provided by operating activities was $ 137.4, compared with $ 133.9, while free cash flow was $ 89.5 compared with $ 105.9. Capital expenditures were (47.9), compared with (28.0), each in millions. For the 26 weeks ended August 2, 2026, the company spent (552.8) on acquisition of businesses, net of cash acquired, repurchased (400.0) of common stock, raised 811.7 from debt, and made principal debt repayments of (220.0), each in millions.
The balance sheet reflects the acquisition and financing activity. Cash and cash equivalents were $ 611.0 (in millions) as of August 2, 2026, versus $ 860.1 (in millions) as of February 1, 2026. Long-term debt, net was 588.7 (in millions), with a current portion of long-term debt of 3.0 (in millions), compared with no reported debt in those lines at February 1, 2026. Total assets rose to $ 3,740.6 (in millions), including goodwill of 334.1 (in millions) and intangible assets, net of 149.7 (in millions).
Management described net sales as at the high end of its guidance and said adjusted EBITDA margin exceeded expectations. It also said it raised its full-year revenue and profitability outlook. The filing does not disclose the revised quantitative outlook, prior quantitative guidance, or a guidance range, leaving investors to focus on subsequent disclosures for the magnitude of the revised targets and on whether current Autoship, customer, margin, capital spending, and acquisition-related trends continue.
Management, verbatim
Chewy delivered a strong second quarter, with growth of 7.3% to $3.33 billion of net sales at the high end of our guidance, and a 6.8% Adj. EBITDA margin, exceeding our expectations.
Sumit Singh, Chief Executive Officer of Chewy
The durability of our recurring revenue base, continued customer growth, and disciplined execution give us confidence to raise our full-year revenue and profitability outlook, while continuing to invest in compelling opportunities that deepen customer engagement and create long-term shareholder value.
Sumit Singh, Chief Executive Officer of Chewy
Not in the filing
stated, not guessed- Quantitative full-year revenue guidance
- Quantitative full-year profitability guidance
- Gross-margin guidance
- Operating-expense guidance
- Tax-rate guidance
- Prior quantitative guidance for comparison
- Segment revenue disclosures
- Prior-quarter comparisons for reported quarterly metrics
- Dividend declaration or payment information
- Quantitative share-repurchase authorization remaining
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Chewy's Q2 2026 earnings were filed via an SEC Form 8‑K, the first public disclosure of the results.
Ticker impact
Chewy released its Q2 2026 earnings with $3.33B sales, $0.20 EPS and raised full-year outlook.
upward move of 3-5% in the next trading session
Revenue and EPS both beat prior guidance, margins improved, and management signaled higher full-year targets.
Market effects
Strong pet‑e‑commerce results may lift peer online retailers and pet‑product suppliers.
Positive for U.S. consumer discretionary sector.
Limited to U.S. market but may influence global pet‑care retailers.
Counterpoint
If the raised outlook is already priced in, the stock could face a short‑term pullback.
Key entities
- ExecutiveSumit Singh
CEO of Chewy who provided commentary on the results.
