Chewy Inc (NYSE:CHWY) stock rose 2.24% (As on March 26, 11:16:44 AM UTC-4, Source: Google Finance) after the company issued upbeat growth outlook for the year, encouraged by a strong sales performance in 2025. The company saw its net income last year drop by 43 percent to $222.8 million from $392.7 million in 2024. However, net income for the fourth quarter alone surged by 72 percent to $39.2 million from $22.8 million year-on-year. Net margin of 1.2 percent expanded 50 basis points year over year. Gross margin for the quarter expanded 90 basis points YoY to 29.4%, while adjusted EBITDA margin improved 120 basis points to 5.0%. Adjusted EBITDA totaled $162.3 million, an increase of $37.8 million YoY. The company exited 2025 from a position of real strength: $12.6 billion in net sales or 8.3% growth, $719 million of adjusted EBITDA or 26% growth, record free cash flow of $562 million, and 21.3 million active customers. The company expect 2026 pet industry dynamics to largely mirror 2025, steady and resilient to macro trends, but without cyclical acceleration. Pet household formation appears stable with no evidence of deterioration.

Moreover, the company continues to grow active, increasing by approximately 4% year-over-year and net additions up by more than 810,000 year-over-year in fiscal 2025. Autoship customer sales reached over $2.7 billion in Q4 and $10.5 billion for the year, representing 84% of total net sales in Q4 and 83.3% for the full year 2025. Growth in Autoship customer sales outpaced overall top line growth, increasing by nearly 13% in the fourth quarter and 14% for the full year 2025 on a comparable basis. NSPAC reached $591 in Q4 2025, increasing by approximately 4% year-over-year on a comparable basis

CHWY in the fourth quarter of FY 25 has reported the adjusted earnings per share of $0.27, beating the analysts’ estimates for the adjusted earnings per share of $0.09. The company had reported the adjusted revenue growth of 8.1 percent to $3.26 billion in the fourth quarter of FY 25, which matches the analysts’ estimates for revenue of $3.26 billion.

Chewy Inc. said that it is targeting to grow its net sales by 7.9 to 9 percent to a range of $13.60 billion to $13.75 billion, versus the $12.6 billion last year. Adjusted EBITDA margin is also projected to increase by 6.6 to 6.8 percent. For the first quarter alone, net sales are pegged at $3.33 billion to $3.36 billion, or an implied growth of 6.7 to 7.7 percent from the $3.12 billion registered in the same quarter last year.