Chewy profitability surges as first-quarter net income reaches $94.8M

Chewy (NYSE:CHWY) delivered a strong financial performance for the first quarter of fiscal year 2026, characterized by robust top-line growth and a significant increase in profitability despite a dynamic broader consumer environment.

The online pet-care retailer reported net sales of $3.36 billion for the quarter ended May 3, 2026, representing a 7.7% increase compared to the first quarter of fiscal year 2025.

This growth was accompanied by a notable expansion in operational efficiency, as the company's gross margin widened by 50 basis points year-over-year to hit 30.1%.

Net income for the quarter arrived at $94.8 million, showing resilience even after accounting for $73.4 million in share-based compensation expenses and related taxes.

This bottom-line surge lifted Chewy’s net margin by 80 basis points to 2.8%.

Both basic and diluted earnings per share for the quarter landed at $0.23, marking a clear $0.08 improvement over the results recorded during the same period last year.

The company's core profitability metrics also experienced pronounced gains.

Adjusted EBITDA rose by $60.4 million year-over-year to reach $253.1 million, which propelled the adjusted EBITDA margin up 130 basis points to 7.5%.

On a normalized basis, adjusted net income came in at $179.9 million, an increase of $31 million from the prior year's first quarter, while adjusted diluted earnings per share climbed $0.08 to $0.43.