Chewy’s fourth quarter results were met positively by the market, reflecting steady execution in a challenging environment for pet retail. Management credited robust recurring revenue from its Autoship program, which now accounts for over 80% of net sales, and emphasized gains in operational efficiency. CEO Sumit Singh highlighted a continued focus on premium product mix and disciplined expense management, stating, “We are delivering share gains, expanding margins through structural efficiencies and generating growing free cash flow.” The company also noted that customer net additions remained healthy, driven by new initiatives in health and private brands. Notably, net sales for Q4 grew 8.1% year over year on a comparable 52-week basis.

Is now the time to buy CHWY? Find out in our full research report (it’s free for active Edge members).

While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Chewy’s Q1 Earnings Call

• Mark Stephen Mahaney (Evercore ISI) asked about the sustainability of marketing leverage and the impact of the Chewy Made strategy. CEO Sumit Singh emphasized ongoing marketing efficiency and noted that private brands should drive both margin and customer spend per order.
• Eric Sheridan (Goldman Sachs) questioned the scale of AI-driven cost savings and how they would be balanced between profit growth and reinvestment. Singh explained that AI is already reducing customer service costs and that future savings would support both higher margins and reinvestment.
• Douglas Anmuth (JPMorgan) inquired about the impact of Agentic Commerce and the resilience of Chewy’s Autoship model. Singh stated that Chewy’s service-rich, recurring model is well-insulated from industry disruption and is positioned to benefit from new distribution channels.
• David Bellinger (Mizuho) asked for detail on quarterly revenue ramp and margin expansion drivers. CFO Chris Deppe said growth would be broad-based with no reliance on a single factor, and that margin gains are rooted in structural business improvements rather than one-time items.
• Anna Andreeva (Piper Sandler) pressed for expectations around the SmartEquine acquisition and gross margin trajectory. Singh and Deppe said 2026 will focus on stabilizing the acquired business and that gross margin gains will increasingly come from mix and operational leverage.

Catalysts in Upcoming Quarters

In the next few quarters, our analyst team will watch (1) the ramp and customer adoption of the Chewy Made private brand platform, (2) the measurable impact of AI-driven cost savings on operating margins, and (3) the continued growth and profitability of Chewy Vet Care. Progress in integrating the SmartEquine acquisition and expansion in health services will also be important signposts.

Chewy currently trades at $18.95, down from $20.40 just before the earnings. Is there an opportunity in the stock?See for yourself in our full research report (it’s free).

The Best Stocks for High-Quality Investors

ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.

Our AI system flagged Palantir before it ran 1,662%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.

Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.