Revenue growth has decelerated to 4.8% in 2026Q1, while operating margins remain constrained at 1.3% due to persistent SG&A expenses.
| Sales/Revenue | 12.75B | 12.6B | 11.86B | 11.15B | 10.12B | 8.97B | 7.15B | 4.85B | 3.53B | 2.1B | 900.57M |
| Revenue Growth % | 2.1% | 6.24% | 6.4% | 10.17% | 12.84% | 25.48% | 47.44% | 37.19% | 67.89% | 133.66% | - |
| Cost of Goods Sold | 8.96B | 8.85B | 8.39B | 7.99B | 7.28B | 6.58B | 5.33B | 3.7B | 2.82B | 1.74B | 750.74M |
| COGS % of Revenue | - | 70.21% | 70.76% | 71.64% | 71.99% | 73.4% | 74.52% | 76.4% | 79.77% | 82.53% | 83.36% |
| Gross Profit | 3.79B | 3.75B | 3.47B | 3.16B | 2.83B | 2.39B | 1.82B | 1.14B | 714.8M | 367.55M | 149.83M |
| Gross Margin % | 29.72% | 29.79% | 29.24% | 28.36% | 28.01% | 26.6% | 25.48% | 23.6% | 20.23% | 17.47% | 16.64% |
| Gross Profit Growth % | - | 8.25% | 9.68% | 11.54% | 18.82% | 31.01% | 59.15% | 60.05% | 94.48% | 145.31% | - |
| Operating Expenses | 3.57B | 3.5B | 3.36B | 3.19B | 2.78B | 2.46B | 1.91B | 1.4B | 982.57M | 705.4M | 257.26M |
| OpEx % of Revenue | - | 27.77% | 28.29% | 28.57% | 27.45% | 27.42% | 26.75% | 28.82% | 27.81% | 33.52% | 28.57% |
| Selling, General & Admin | 3.57B | 3.5B | 3.36B | 3.19B | 2.78B | 2.46B | 1.91B | 1.4B | 982.57M | 705.4M | 257.26M |
| SG&A % of Revenue | - | 27.77% | 28.29% | 28.57% | 27.45% | 27.42% | 26.75% | 28.82% | 27.81% | 33.52% | 28.57% |
| Research & Development | 0 | 0 | 37.6M | 30.2M | 22.4M | 14.2M | 7.4M | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | 0.32% | 0.27% | 0.22% | 0.16% | 0.1% | - | - | - | - |
| Other Operating Expenses | 0 | 0 | -37.6M | -30.2M | -22.4M | -14.2M | -7.4M | 0 | 0 | 0 | 0 |
| Operating Income | 219.9M | 254.3M | 112.59M | -23.63M | 56.42M | -73.57M | -90.46M | -252.73M | -267.77M | -337.85M | -107.43M |
| Operating Margin % | 1.72% | 2.02% | 0.95% | -0.21% | 0.56% | -0.82% | -1.27% | -5.21% | -7.58% | -16.06% | -11.93% |
| Operating Income Growth % | - | 125.87% | 576.56% | -141.87% | 176.69% | 18.68% | 64.2% | 5.62% | 20.74% | -214.49% | - |
| EBITDA | 356.2M | 383.6M | 227.14M | 86.07M | 139.86M | -18.25M | -54.8M | -222.08M | -244.56M | -325.31M | -102.38M |
| EBITDA Margin % | 2.79% | 3.04% | 1.92% | 0.77% | 1.38% | -0.2% | -0.77% | -4.58% | -6.92% | -15.46% | -11.37% |
| EBITDA Growth % | 77.81% | 68.88% | 163.91% | -38.46% | 866.49% | 66.7% | 75.32% | 9.19% | 24.82% | -217.74% | - |
| D&A (Non-Cash Add-back) | 136.3M | 129.3M | 114.56M | 109.69M | 83.44M | 55.32M | 35.66M | 30.64M | 23.21M | 12.54M | 5.04M |
| EBIT | 232.1M | 267.9M | 157.21M | 51.81M | 55.12M | -73.04M | -90.46M | -252.73M | -267.77M | -337.85M | -106.87M |
| Net Interest Income | 14.8M | 15.2M | 35.07M | 58.5M | 9.29M | -1.64M | -2.02M | 356K | -124K | -206K | 222K |
| Interest Income | 19.4M | 19.8M | 40.59M | 62.08M | 11.87M | 523K | 0 | 356K | 57K | 350K | 518K |
| Interest Expense | 4.6M | 4.6M | 5.52M | 3.58M | 2.58M | 2.16M | 2.02M | 0 | 181K | 556K | 296K |
| Other Income/Expense | 7.6M | 9M | 39.11M | 71.86M | -3.88M | -1.64M | -2.02M | 356K | -124K | -206K | 263K |
| Pretax Income | 227.5M | 263.3M | 151.69M | 48.23M | 52.55M | -75.21M | -92.49M | -252.37M | -267.89M | -338.06M | -107.16M |
| Pretax Margin % | 1.78% | 2.09% | 1.28% | 0.43% | 0.52% | -0.84% | -1.29% | -5.21% | -7.58% | -16.07% | -11.9% |
| Income Tax | 27.9M | 40.5M | -241.04M | 8.65M | 2.65M | 0 | 0 | 0 | 0 | 0 | 0 |
| Effective Tax Rate % | 12.26% | 15.38% | -158.9% | 17.93% | 5.04% | 0% | 0% | 0% | 0% | 0% | 0% |
| Net Income | 199.6M | 222.8M | 392.74M | 39.58M | 49.9M | -75.21M | -92.49M | -252.37M | -267.89M | -338.06M | -107.16M |
| Net Margin % | 1.57% | 1.77% | 3.31% | 0.36% | 0.49% | -0.84% | -1.29% | -5.21% | -7.58% | -16.07% | -11.9% |
| Net Income Growth % | 78.35% | -43.27% | 892.26% | -20.68% | 166.35% | 18.68% | 63.35% | 5.79% | 20.76% | -215.46% | - |
| Net Income (Continuing) | 199.6M | 222.8M | 392.74M | 39.58M | 49.9M | -75.21M | -92.49M | -252.37M | -267.89M | -338.06M | -107.16M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.47 | 0.52 | 0.91 | 0.09 | 0.12 | -0.18 | -0.23 | -0.63 | -0.68 | -0.85 | -0.27 |
| EPS Growth % | 72.54% | -42.86% | 893.45% | -23.67% | 166.67% | 21.74% | 63.49% | 7.35% | 20% | -214.81% | - |
| EPS (Basic) | - | 0.53 | 0.93 | 0.09 | 0.12 | -0.18 | -0.23 | -0.63 | -0.68 | -0.85 | -0.27 |
| Diluted Shares Outstanding | 424.1M | 425.8M | 430.99M | 432.04M | 427.77M | 417.22M | 407.24M | 401.37M | 395.71M | 395.71M | 395.71M |
| Basic Shares Outstanding | 414.4M | 414.1M | 421.35M | 429.46M | 422.33M | 417.22M | 407.24M | 401.37M | 393M | 395.71M | 395.71M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - |
Stagnating Active Customer Base
As reported in recent financial filings, Chewy's revenue growth has decelerated to 4.8% in 2026Q1, marking a significant departure from the double-digit expansion observed in prior periods and highlighting the challenges of maintaining scale in a saturated e-commerce pet consumables market.
The transition from high-growth expansion to low-single-digit revenue increases suggests that the company is struggling to acquire new customers at historical rates. Investors should monitor whether this deceleration reflects a permanent shift in market penetration or a temporary pause in consumer discretionary spending on non-essential pet goods.
Based on the company's reported figures, gross margins have remained tightly clustered around the 29-30% range over the last ten quarters, indicating that competitive pricing pressures and high fulfillment costs continue to act as a ceiling on profitability.
Despite the shift toward higher-margin pharmacy and health services, the lack of meaningful gross margin expansion suggests that the core consumables business remains highly sensitive to logistics costs. This persistent margin profile implies that significant operational leverage may be difficult to achieve without a fundamental change in the product mix.
According to quarterly income statements, operating margins have compressed to 1.3% in 2026Q1, demonstrating that SG&A expenses are scaling in lockstep with gross profit and preventing the company from realizing meaningful bottom-line operating leverage.
The inability to decouple operating expenses from revenue growth suggests that the company's fulfillment and marketing infrastructure requires constant reinvestment to maintain its competitive position. This trend warrants further investigation into whether the current cost structure is inherently inefficient or if it reflects a strategic choice to prioritize market share over immediate profitability.
As evidenced by the provided data, share-based compensation remains a substantial recurring expense, frequently exceeding $60 million per quarter, which significantly distorts the quality of GAAP net income and complicates the assessment of the company's underlying cash-generating capability.
The reliance on equity-based incentives to manage cash outflows appears to be a structural feature of the company's compensation model, which may be masking the true cost of talent acquisition. Investors should be cautious when evaluating EPS growth, as the dilution and non-cash nature of these expenses often create a disconnect between reported earnings and actual free cash flow.
Based on the stagnation of revenue growth and the thin operating margins reported in recent filings, short-sellers may argue that the company has reached a maturity phase where the cost of customer acquisition outweighs the lifetime value of the remaining addressable market.
The reliance on a stagnant active customer base to drive future earnings growth appears increasingly fragile, particularly if the company cannot successfully pivot to higher-margin services. This scenario suggests that the market may be overestimating the company's ability to extract more value from existing customers without incurring prohibitive marketing or operational costs.
Quick answers to the most common questions about buying CHWY stock.
For fiscal year 2025, Chewy, Inc. (CHWY) reported total revenue of $12.60B. This represents a 1299.3% increase compared to $900.6M in 2016.
Chewy, Inc. (CHWY) is profitable, generating $222.8M in net income for the fiscal year ending 2025 with a net profit margin of 1.8%.
Chewy, Inc. (CHWY) reported an operating income of $254.3M, resulting in an operating profit margin of 2.0%. This margin reflects the operational efficiency of the business before interest and taxes.
Chewy, Inc. (CHWY) generated $3.75B in gross profit for the year, representing a gross profit margin of 29.8%. This demonstrates the company's core pricing power and production efficiency.