Chewy Posts 7.7% Revenue Growth, Expands Profitability in Q1 2026…

Event summary

Chewy reported $3.36 billion in net sales for Q1 2026, up 7.7% year-over-year.
Gross margin increased by 50 basis points to 30.1%, while net income rose to $94.8 million.
Adjusted EBITDA grew by $60.4 million year-over-year, reaching $253.1 million.
The company added nearly 200,000 net customers during the quarter.
Free cash flow improved significantly, with adjusted EBITDA margin expanding by 130 basis points to 7.5%.

The big picture

Chewy's Q1 2026 results highlight its resilience in the competitive pet care sector, with a focus on expanding profitability and free cash flow. The company's ability to grow net sales while improving margins underscores its strategic execution in a challenging consumer environment. As the pet e-commerce market evolves, Chewy's performance will be closely watched for its potential to set industry benchmarks.

What we're watching

Market Share Expansion: Whether Chewy can sustain its market share gains amid a dynamic consumer backdrop.
Profitability Trends: The pace at which Chewy can continue expanding its gross and net margins.
Customer Retention: How the addition of nearly 200,000 net customers will impact long-term loyalty and repeat purchasing.