Chewy earnings showed stronger sales and profitability in the second quarter of fiscal 2026, leading the online pet retailer to raise its full-year outlook. Chewy (NYSE: CHWY) reported net sales of $3.33 billion, an increase of 7.3% from a year earlier.
According to the company’s quarterly results announcement, net income reached $80.5 million and the net margin improved by 40 basis points to 2.4%. Adjusted EBITDA rose by $43.4 million to $226.7 million, lifting the adjusted margin by 90 basis points to 6.8%.
Chewy Earnings Benefit From Autoship and Customer Growth
Active customers increased 3.8% to 21.7 million, while net sales per active customer advanced 1.9% to $602. Autoship sales grew 9.3% to $2.82 billion and represented 84.6% of quarterly revenue, highlighting the importance of recurring orders to the company’s business model.
Adjusted diluted earnings were $0.36 per share, up $0.03 from the prior-year period. Gross margin held at 30.4%, indicating that the improvement in adjusted operating profitability came despite no year-over-year expansion in the headline gross margin.
Management said the Chewy earnings performance supported a higher revenue and profitability outlook for the year. Sustaining the improvement will depend on customer retention, order frequency, marketing efficiency and the retailer’s ability to protect margins as competition and fulfillment costs evolve.
