$CHWY · Chewy, Inc.

Chewy reported Q2 FY2026 results with net sales of $3.33B (+7.3% YoY), net income of $80.5M ($0.20 diluted EPS), and Adjusted EBITDA of $226.7M (6.8% margin, +90 bps YoY). Autoship customer sales reached $2.82B, representing 84.6% of net sales. Active customers grew 3.8% YoY to 21.7M. The company completed a $552.8M acquisition (net of cash), adding $334.1M in goodwill and $149.7M in intangibles. Management raised full-year revenue and profitability guidance, citing durable recurring revenue and disciplined execution.

Extended-hours trading shows CHWY at $23.70, up +1.85% from the $23.27 regular close, indicating a positive initial reaction to the beat-and-raise quarter. The $9.64B market cap stock is responding favorably to the guidance raise and margin expansion.

Beat-and-raise quarter with accelerating profitability and a full-year guidance lift — the kind of print that shifts sentiment on a name that's been range-bound.

Chewy's 84.6% autoship penetration and 6.8% Adj. EBITDA margin reinforce the subscription-like durability that differentiates it in e-commerce. The $552.8M acquisition (SmartPak/Modern Animal) signals expansion beyond pure-play pet retail into health and services.

Free cash flow declined 15.5% YoY to $89.5M in Q2 as capex nearly doubled to $47.9M. Cash and equivalents dropped from $860.1M to $611.0M sequentially, partly due to $400M in share repurchases and the $552.8M acquisition.