Abstract

Chewy, Inc. will report results on March 25, 2026 Pre-Market; investors will watch revenue growth, margin durability, and customer quality as consensus points to modest top-line expansion and improving profitability, with attention on Autoship stability and the scaling economics of healthcare, services, and advertising.

Market Forecast

Consensus expects Chewy, Inc. to deliver revenue of 3.29 billion US dollars for the quarter, up 2.83% year over year, with adjusted EPS around 0.09 US dollars and EBIT near 41.10 million US dollars, implying year-over-year increases of 72.89% for EPS and 353.29% for EBIT. Against this backdrop, the core non-discretionary category is expected to remain the stabilizer for the top line while mix and fulfillment efficiencies support margins; the “Other” bucket of healthcare, services, and advertising is the key mix accretive driver. The most promising segment is Other at 592.10 million US dollars last quarter, which, together with Consumables, powered total revenue growth of 8.30% year over year, and is positioned to outgrow the corporate average as services scale.

Last Quarter Review

Chewy, Inc. reported revenue of 3.12 billion US dollars, a gross profit margin of 29.78%, net profit attributable to shareholders of 59.20 million US dollars, a net profit margin of 1.90%, and adjusted EPS of 0.14 US dollars, reflecting a 1300% year-over-year increase. Operating execution improved as EBIT reached 65.20 million US dollars, up 154.37% year over year, signaling better fulfillment leverage and a richer product and service mix. By category, Consumables contributed 2.18 billion US dollars, Hardgoods 348.60 million US dollars, and Other 592.10 million US dollars, with the mix helping lift total revenue by 8.30% year over year.

Current Quarter Outlook (with major analytical insights)

Main business: non-discretionary Consumables and Autoship economics

The principal revenue base remains non-discretionary Consumables, complemented by Autoship, which underpins predictable purchase frequency and lends stability to order volumes through subscription-like behavior. The previous quarter’s category composition showed Consumables at 2.18 billion US dollars, anchoring the top line and absorbing demand variability in discretionary Hardgoods. The current quarter’s modest revenue growth expectation—3.29 billion US dollars, up 2.83% year over year—implies that Chewy, Inc. continues to balance pricing, promotional cadence, and customer retention to protect gross margin while sustaining volume. Margin drivers include mix improvements toward higher-margin owned brands and healthcare supplies, tighter vendor terms, and efficiency gains across fulfillment and last-mile logistics that were evident in the 29.78% gross margin achieved most recently. A key factor to monitor this quarter is Autoship retention and customer quality: a stable or improving net sales per active customer tends to confirm cross-sell traction and higher spend concentration among loyal households, which in turn supports gross profit per order. Given the 1.90% net margin baseline last quarter, any incremental mix shift toward higher-margin consumables and services can flow through meaningfully to adjusted EPS, explaining why EPS is expected to expand to 0.09 US dollars even with moderate top-line growth. To that end, management’s discipline on promotions in Hardgoods, while maintaining availability and selection in essential categories, will be important for sustaining the recent margin profile.

Largest growth potential: healthcare, services, and advertising (Other)

The Other segment—comprising healthcare, pet pharmacy, advertising, and services—accounted for 592.10 million US dollars last quarter and is the engine most likely to contribute accretive growth this period. Healthcare and services generally carry higher gross margins than the commerce baseline and benefit from cross-sell synergies with the existing Autoship customer base. As pharmacy penetration increases and services such as advertising mature, they can raise profit density per customer without requiring equivalent fulfillment capacity increases, aiding operating leverage. Over the coming quarter, investors will look for updates on the cadence of healthcare transactions, prescription penetration, and the early monetization of services tied to the “Other” bucket. Execution here matters for two reasons: first, it supports consensus expectations for EBIT of 41.10 million US dollars—implying 353.29% year-over-year growth on a relatively small base—and second, it helps validate the thesis that Chewy, Inc. can compound earnings through mix even when headline revenue growth is modest. The combined effect should be visible in incremental gross margin stability or improvement and a healthier contribution to operating income per order. If management sustains momentum in service attachment rates and advertising demand, the segment can remain the main driver of adjusted EPS expansion beyond this quarter.

What will move the stock this quarter: customer trends, margin confirmation, and guidance tone

The stock’s near-term performance will hinge on the interplay between customer metrics and profitability. A steady or rising net sales per active customer, in the face of a flat-to-slightly improving active customer base, would confirm healthier cohort quality and better monetization of existing users. Conversely, any unexpected churn or softer Autoship penetration would pressure growth expectations and could invite concerns about the durability of the subscription-like revenue stream. The margin narrative is equally central: after delivering a 29.78% gross margin and a 1.90% net margin last quarter, investors will seek confirmation that fulfillment efficiencies, inbound freight normalization, and a rational promotional mix are sustainable in the current environment. Because consensus expects adjusted EPS of 0.09 US dollars and EBIT of 41.10 million US dollars, the quarter’s message on gross margin, operating expense control, and marketing efficiency will likely dictate whether EPS surpasses or trails expectations. Finally, guidance tone can reset the stock’s risk-reward. If Chewy, Inc. reiterates or raises its outlook on revenue and margin progression, especially tied to services scaling and potential operating leverage, it could validate the current bullish expectations despite modest revenue growth. Conversely, a conservative guide—particularly around discretionary categories—might cap near-term upside even if the quarter meets on the headline numbers. Watch for commentary on inventory positioning, vendor dynamics, and capital allocation priorities, since each speaks to the company’s confidence in the trajectory of both growth and profitability.

Analyst Opinions

Across the last six months of commentary, the majority view on Chewy, Inc. is bullish, with a clear tilt toward improving margin quality and service-led optionality outweighing concerns about discretionary softness; bullish views outnumber cautious or bearish takes by roughly a two-to-one ratio. Analysts emphasizing the upside generally point to three pillars: sustained stability in the Autoship base, mix accretion from healthcare and services that supports margin expansion, and continued operating discipline that can translate into higher EBIT and EPS even when top-line growth is modest. Morgan Stanley reiterates an Overweight stance centered on advancing unit economics, highlighting that the combination of better product mix and improving fulfillment productivity can continue to lift operating profit per order. Bank of America maintains a Buy view based on the expansion runway in healthcare and advertising, noting that these lines tend to scale with attractive margins and are under-penetrated relative to the existing customer base. RBC Capital Markets’ constructive take underscores the durability of consumables demand and a measured approach to discretionary promotions, arguing that the margin profile appears better anchored than in prior cycles. Meanwhile, neutral or cautious opinions, such as those from UBS or select boutique firms, focus on the pace of active customer recovery and the potential drag from discretionary categories, but they generally concede that service and advertising growth is a counterbalance that improves the earnings mix.

The bullish camp’s core argument is that Chewy, Inc. does not need outsized revenue growth to achieve material EPS progress this year. With consensus looking for revenue of 3.29 billion US dollars, up 2.83% year over year, analysts see the real story in margins and mix—specifically, the step-up in profitability implied by an expected 72.89% year-over-year increase in adjusted EPS to 0.09 US dollars and a 353.29% rise in EBIT to 41.10 million US dollars. They note that last quarter’s net margin of 1.90% and gross margin of 29.78% already showcased the benefits of fulfillment efficiencies and disciplined promotions, and they expect those elements to persist. Supportive views also cite the outsized contribution from the Other segment, which posted 592.10 million US dollars last quarter and is tied to higher-margin activities like pharmacy and advertising; scaling these services can lift contribution profit without requiring equivalent investment in physical fulfillment, thereby enhancing operating leverage.

In assessing the path to upside, bullish analysts emphasize several verification points for the quarter: evidence of steady or rising net sales per active customer, consistent Autoship penetration indicative of stable demand in nondiscretionary categories, and commentary that validates limited promotional pressure in Hardgoods. They also look for continued traction in services, highlighted by healthcare and advertising momentum, as a way to reinforce EPS durability even if category-level growth remains uneven. The majority view anticipates that Chewy, Inc.’s report will align with these themes and that management’s tone on guidance will be the final gating factor for whether the shares extend gains. If the company reiterates a path of mix-led margin expansion, with operating costs held in check, the stock could see support from both fundamental and sentiment-driven buyers who have been waiting for confirmation of sustainable profitability gains.

In sum, the prevailing institutional stance expects Chewy, Inc. to post a quarter that is better defined by profit quality than by headline sales growth. Bulls argue that the combination of stable non-discretionary demand, disciplined execution in fulfillment and marketing, and higher-margin services is sufficient to meet or slightly exceed earnings expectations, while setting a base for continued EPS expansion in the quarters ahead. Given the emphasis on margin confirmation and services scaling, the consensus skew is positive going into March 25, 2026 Pre-Market, with the balance of opinion aligned to a constructive outcome provided that guidance does not undercut the improving trajectory.