Chewy Inc. reported third‑quarter 2025 results on December 10, 2025, with net sales of $3.12 billion, a 8.3% year‑over‑year increase that outpaced the broader pet‑retail industry’s growth of 3.5‑4.5%. The autoship program, which now represents 83% of total sales, grew 14% to $2.6 billion, underscoring the company’s subscription moat and the resilience of its recurring‑revenue model.
Revenue growth was driven primarily by the autoship segment, which expanded by 14% thanks to higher order frequency and a favorable mix of consumables and private‑brand products. The company’s private‑brand fresh‑food sales and sponsored‑advertising revenue also contributed to the lift, while one‑time sales of hard‑goods and pharmacy items remained flat, keeping the overall mix tilted toward high‑margin categories. Compared with Q3 2024, where net sales were $2.88 billion, the 8.3% increase reflects both volume gains and a modest price lift in key product lines.
Chewy’s gross margin expanded to 29.8%, up 50 basis points from 29.3% a year earlier. The margin gain was largely a result of a higher mix of private‑brand and autoship sales, which carry lower fulfillment costs, and disciplined cost management that offset modest increases in shipping and marketing expenses. Adjusted diluted earnings per share rose to $0.32, beating consensus estimates that ranged from $0.13 to $0.30—a beat of up to $0.19 or 60% relative to the top of the range. The EPS beat was driven by the margin expansion, the continued strength of the autoship program, and the company’s ability to keep operating expenses in line with revenue growth.
Management guided for Q4 2025 adjusted diluted EPS of $0.24 to $0.27, a range that is slightly above the consensus of $0.22–$0.24 reported by most analysts. Full‑year sales guidance was raised to $12.58 billion–$12.60 billion, and adjusted EBITDA margin guidance was tightened to 5.6%–5.7%, up from 5.4%–5.5% a year earlier. The upward revision signals confidence in sustained holiday demand and the continued effectiveness of Chewy’s high‑margin initiatives, while the margin guidance reflects expectations of further cost discipline and a favorable mix shift.
CEO Sumit Singh said the quarter “continues to demonstrate the strength of our subscription model and the execution of our high‑margin strategy.” He added that Chewy “exceeded the high end of our net‑sales guidance, grew margins, and delivered strong free‑cash‑flow generation.” The company also reiterated its plans to expand Chewy Vet Care clinics and the Chewy+ membership program, positioning it to capture additional share of the $157 billion pet‑industry market and deepen customer loyalty.
Investors responded positively to the results, citing the robust EPS beat, margin expansion, and the company’s clear guidance for the holiday season. The market reaction reflected confidence in Chewy’s ability to sustain growth in a normalizing retail environment and its competitive advantage over traditional retailers and e‑commerce giants.
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