EarningsQ2 2026 Earnings Report
MX:CHWY Q2 2026 EPS Results
Actual EPS$3.66
Consensus EPS$3.26
Beat/MissBeat by +$0.40
One Year Ago EPS$2.56
MX:CHWY Q2 2026 Revenue Results
Actual Revenue$60.92B
Expected Revenue$60.68B
Beat/MissBeat by +$245.57M
YoY Revenue Growth+7.28%
Earnings Announcement Details
QuarterQ2 2026
Date09/09/2026
TimeBefore Open
Conference CallWednesday, September 9, 2026
MX:CHWY Upcoming Earnings
Chewy's next earnings date is estimated for December 3, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
MX:CHWY Q2 2026 Earnings Call
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Q2 2026 Earnings Slide Deck
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive overall. Chewy reported 7.3% revenue growth, continued market-share gains, active-customer and Autoship growth, substantial year-over-year margin expansion, strong momentum in health and acquired businesses, early AI benefits, and improved full-year guidance. These positives outweighed the pressured consumer environment, discretionary and premiumization weakness, limited pricing contribution, timing-related nature of much of the Q2 margin upside, and expected fuel and seasonal headwinds.Company Guidance
Strong Q2 Revenue and Market-Share Performance
Q2 total enterprise net sales reached $3.33 billion, at the high end of guidance, representing 7.3% year-over-year growth. Organic net sales excluding SmartPak and Modern Animal increased 5.7%, driven by active customer growth, NEST Pack expansion, and ongoing market-share gains. Chewy continued to outperform the broader pet category by roughly 2x to 3x.
Active Customer Growth and Higher Customer Spend
Active customers increased 3.8% year over year to 21.7 million, including 208 thousand sequential net additions. Net sales per active customer reached $602; reported growth was 1.9% year over year and normalized growth, accounting for the extra week in the prior-year period, was 3.8%.
Autoship Continues to Strengthen Recurring Revenue
Autoship customer sales increased 9.3% year over year to $2.8 billion and represented 84.6% of total net sales. Autoship growth outpaced overall company growth, reinforcing the recurring and predictable nature of the revenue base.
Broad-Based Category and Specialty Growth
Chewy delivered mid-single-digit growth in consumables while the broader consumables market was described as broadly flat year over year. Hard goods grew in the mid-teens, substantially outpacing the broader market, supported by expanded assortment and merchandising improvements. Pet health and specialty products delivered strong organic growth, while the equine, farm, and exotics business achieved its seventh consecutive quarter of mid-double-digit year-over-year sales growth.
Chewy Vet Care Scaling Rapidly
The total Chewy Vet Care clinic portfolio delivered triple-digit revenue growth in Q2. Management cited strong customer satisfaction, attractive veterinarian productivity and retention, compelling four-wall economics, and incremental engagement across the broader Chewy ecosystem.
Fresh and Frozen Portfolio Momentum
The fresh and frozen portfolio meaningfully outpaced the broader category and delivered triple-digit unit growth in the quarter.
Modern Animal and SmartPak Ahead of Expectations
Modern Animal performed ahead of expectations in the quarter, and SmartPak also performed ahead of expectations. Management said the early performance of both businesses reinforced its conviction in the acquired assets and in the ability to improve them using Chewy's scale and capabilities. SmartPak customers included 43 thousand unique customers who had transacted with SmartPak since the acquisition and were reflected in the active customer count.
Expanded Profitability and Structural Efficiency
Adjusted EBITDA reached $227 million, with a 6.8% adjusted EBITDA margin versus guidance of 6.3% to 6.4%. Non-GAAP SG&A was $612 million, or 18.4% of net sales, compared with 19.1% in the prior-year period, representing 70 basis points of year-over-year SG&A leverage. The leverage reflected improved fulfillment-center utilization, lower variable cost to serve, disciplined headcount management, automation, process improvements, and productivity gains.
Gross Margin Supported by Sponsored Ads and Mix
Q2 gross margin was 30.4%, flat year over year and up 30 basis points sequentially. Gross margin benefited from continued growth in sponsored ads, disciplined promotional activity, and a shift toward higher-margin categories such as health. Management said sponsored ads and mix premiumization should continue to provide gross-margin tailwinds, although sponsored-ad benefits are expected to be at a lower level than in 2025.
AI Deployment Showing Early Results
Chewy progressed from AI capability development toward scaled deployment across customer experience, team-member productivity, and cost to serve. Kai, its AI-powered customer assistant, resolved approximately 30% of chats through self-service for a select group of mobile-app customers, covering common needs such as orders, returns, Autoship, and account management. Kali, an AI-powered voice capability, was deployed at select Chewy Vet Care locations for appointment confirmations, scheduling, and routine follow-ups.
Expected AI-Related Cost Savings
Chewy expects AI-related initiatives to generate low-tens of millions of dollars of cost savings in fiscal 2026, scaling to approximately $50 million on an annualized basis in fiscal 2027. Management said AI is being used in customer care, pharmacy, and veterinary care to reduce manual work, improve productivity, and lower variable cost to serve.
Full-Year Revenue and EBITDA Guidance Improved
Fiscal 2026 total net sales guidance was set at $13.46 billion to $13.57 billion, representing year-over-year growth of 6.8% to 7.7%, including organic net sales growth of 5.5% to 6.3%. The company narrowed its organic growth range because the more severe downside scenario from the prior outlook became less likely and raised the low end of adjusted EBITDA margin guidance by 10 basis points to 6.7% to 6.8%, from 6.6% to 6.8%. At the midpoint, guidance implies more than 100 basis points of year-over-year adjusted EBITDA margin expansion and $912 million of adjusted EBITDA.
Positive Q3 Operating Outlook
Q3 net sales guidance is $3.323 billion to $3.358 billion, representing reported year-over-year growth of 6.6% to 7.7% and organic growth of 5.3% to 6.2%. Q3 adjusted EBITDA margin is expected to be 6.6% to 6.7%, representing roughly 85 basis points of year-over-year expansion at the midpoint, with adjusted diluted EPS expected to be around $0.39.
Strong Liquidity and Share Repurchases
Chewy ended the quarter with $612 million of cash, cash equivalents, and marketable securities and more than $1 billion of total available liquidity. The company completed the $400 million Modern Animal acquisition, raised $600 million through its inaugural term loan issuance, and deployed $200 million toward share repurchases. It repurchased 9.9 million shares, resulting in a 2% sequential reduction in weighted-average diluted shares outstanding after employee-equity share issuance.
Free Cash Flow Conversion and Long-Term Margin Confidence
Management continued to expect full-year free cash flow conversion of roughly 80% and maintained confidence in its long-term path to 10% plus EBITDA margin. More than 50% of volume is flowing through automated facilities, and the company said it has a roadmap to continue lowering variable cost to serve.
Planned Growth Investments and Chewy Plus Redesign
Chewy expects to increase advertising and marketing activity in the second half, with spending more heavily weighted toward Q3 than Q4 to build brand awareness ahead of the holiday season. Management also described self-funded growth levers including a refreshed Chewy Plus program, additional marketing, improved targeting and conversion capabilities, and new products and experiences intended to deepen engagement and increase attachment. The redesigned Chewy Plus offering is expected to include more integrated health benefits.
Positioning for Agentic Product Discovery
Management characterized changes in agentic search and product discovery as a net tailwind. Chewy said it continues to lead with product innovation, is monitoring search aggregation and traffic trends, and intends to develop new customer interactions to deepen engagement while capturing demand from agentic surfaces.
MX:CHWY Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed