Revenue growth has moderated to a stable 7.3% YoY pace, but a structural gross margin ceiling near 30% and an operating margin of just 3.0% in 2026Q2 suggest profitability remains highly sensitive to fulfillment and input cost pressures.
Chewy, Inc. (CHWY) annual income statement — 10-year revenue, gross profit & net income history
| Metric | TTM | Feb'26 | Jan'25 | Jan'24 | Jan'23 | Jan'22 | Jan'21 | Jan'20 | Jan'19 | Jan'18 | Jan'17 |
|---|
| Sales/Revenue | 13.07B | 12.6B | 11.86B | 11.15B | 10.12B | 8.97B | 7.15B | 4.85B | 3.53B | 2.1B | 900.57M |
| Revenue Growth % | 5.86% | 6.24% | 6.4% | 10.17% | 12.84% | 25.48% | 47.44% | 37.19% | 67.89% | 133.66% | - |
| Cost of Goods Sold | 9.16B | 8.85B | 8.39B | 7.99B | 7.28B | 6.58B | 5.33B | 3.7B | 2.82B | 1.74B | 750.74M |
| COGS % of Revenue | - | 70.21% | 70.76% | 71.64% | 71.99% | 73.4% | 74.52% | 76.4% | 79.77% | 82.53% | 83.36% |
| Gross Profit | 3.91B | 3.75B | 3.47B | 3.16B | 2.83B | 2.39B | 1.82B | 1.14B | 714.8M | 367.55M | 149.83M |
| Gross Margin % | 29.92% | 29.79% | 29.24% | 28.36% | 28.01% | 26.6% | 25.48% | 23.6% | 20.23% | 17.47% | 16.64% |
| Gross Profit Growth % | - | 8.25% | 9.68% | 11.54% | 18.82% | 31.01% | 59.15% | 60.05% | 94.48% | 145.31% | - |
| Operating Expenses | 3.58B | 3.5B | 3.36B | 3.19B | 2.78B | 2.46B | 1.91B | 1.4B | 982.57M | 705.4M | 257.26M |
| OpEx % of Revenue | - | 27.77% | 28.29% | 28.57% | 27.45% | 27.42% | 26.75% | 28.82% | 27.81% | 33.52% | 28.57% |
| Selling, General & Admin | 3.58B | 3.5B | 3.36B | 3.19B | 2.78B | 2.46B | 1.91B | 1.4B | 982.57M | 705.4M | 257.26M |
| SG&A % of Revenue | - | 27.77% | 28.29% | 28.57% | 27.45% | 27.42% | 26.75% | 28.82% | 27.81% | 33.52% | 28.57% |
| Research & Development | 0 | 0 | 37.6M | 30.2M | 22.4M | 14.2M | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | 0.32% | 0.27% | 0.22% | 0.16% | - | - | - | - | - |
| Other Operating Expenses | 0 | 0 | -37.6M | -30.2M | -22.4M | -14.2M | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 328.2M | 254.3M | 112.59M | -23.63M | 56.42M | -73.57M | -90.46M | -252.73M | -267.77M | -337.85M | -107.43M |
| Operating Margin % | 2.51% | 2.02% | 0.95% | -0.21% | 0.56% | -0.82% | -1.27% | -5.21% | -7.58% | -16.06% | -11.93% |
| Operating Income Growth % | - | 125.87% | 576.56% | -141.87% | 176.69% | 18.68% | 64.2% | 5.62% | 20.74% | -214.49% | - |
| EBITDA | 472.1M | 383.6M | 227.14M | 86.07M | 139.86M | -18.25M | -54.8M | -222.08M | -244.56M | -325.31M | -102.38M |
| EBITDA Margin % | 3.61% | 3.04% | 1.92% | 0.77% | 1.38% | -0.2% | -0.77% | -4.58% | -6.92% | -15.46% | -11.37% |
| EBITDA Growth % | 66.98% | 68.88% | 163.91% | -38.46% | 866.49% | 66.7% | 75.32% | 9.19% | 24.82% | -217.74% | - |
| D&A (Non-Cash Add-back) | 143.9M | 129.3M | 114.56M | 109.69M | 83.44M | 55.32M | 35.66M | 30.64M | 23.21M | 12.54M | 5.04M |
| EBIT | 366.1M | 267.9M | 157.21M | 51.81M | 55.12M | -73.04M | -90.46M | -252.73M | -267.77M | -337.85M | -106.87M |
| Net Interest Income | 6.2M | 15.2M | 35.07M | 58.5M | 9.29M | -1.64M | -2.02M | 356K | -124K | -206K | 222K |
| Interest Income | 17.7M | 19.8M | 40.59M | 62.08M | 11.87M | 0 | 0 | 356K | 57K | 350K | 518K |
| Interest Expense | 11.5M | 4.6M | 5.52M | 3.58M | 2.58M | 1.64M | 2.02M | 0 | 181K | 556K | 296K |
| Other Income/Expense | 26.4M | 9M | 39.11M | 71.86M | -3.88M | -1.64M | -2.02M | 356K | -124K | -206K | 263K |
| Pretax Income | 354.6M | 263.3M | 151.69M | 48.23M | 52.55M | -75.21M | -92.49M | -252.37M | -267.89M | -338.06M | -107.16M |
| Pretax Margin % | 2.71% | 2.09% | 1.28% | 0.43% | 0.52% | -0.84% | -1.29% | -5.21% | -7.58% | -16.07% | -11.9% |
| Income Tax | 80.9M | 40.5M | -241.04M | 8.65M | 2.65M | 0 | 0 | 0 | 0 | 0 | 0 |
| Effective Tax Rate % | 22.81% | 15.38% | -158.9% | 17.93% | 5.04% | 0% | 0% | 0% | 0% | 0% | 0% |
| Net Income | 273.7M | 222.8M | 392.74M | 39.58M | 49.9M | -75.21M | -92.49M | -252.37M | -267.89M | -338.06M | -107.16M |
| Net Margin % | 2.09% | 1.77% | 3.31% | 0.36% | 0.49% | -0.84% | -1.29% | -5.21% | -7.58% | -16.07% | -11.9% |
| Net Income Growth % | 81.11% | -43.27% | 892.26% | -20.68% | 166.35% | 18.68% | 63.35% | 5.79% | 20.76% | -215.46% | - |
| Net Income (Continuing) | 273.7M | 222.8M | 392.74M | 39.58M | 49.9M | -75.21M | -92.49M | -252.37M | -267.89M | -338.06M | -107.16M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.67 | 0.52 | 0.91 | 0.09 | 0.12 | -0.18 | -0.23 | -0.63 | -0.68 | -0.85 | -0.27 |
| EPS Growth % | 87.02% | -42.86% | 893.45% | -23.67% | 166.67% | 21.74% | 63.49% | 7.35% | 20% | -214.81% | - |
| EPS (Basic) | - | 0.53 | 0.93 | 0.09 | 0.12 | -0.18 | -0.23 | -0.63 | -0.68 | -0.85 | -0.27 |
| Diluted Shares Outstanding | 410.1M | 425.8M | 430.99M | 432.04M | 427.77M | 417.22M | 407.24M | 401.37M | 395.71M | 395.71M | 395.71M |
| Basic Shares Outstanding | 406.4M | 414.1M | 421.35M | 429.46M | 422.33M | 417.22M | 407.24M | 401.37M | 393M | 395.71M | 395.71M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying CHWY stock.
For fiscal year 2025, Chewy, Inc. (CHWY) reported total revenue of $12.60B. This represents a 1299.3% increase compared to $900.6M in 2016.
Chewy, Inc. (CHWY) is profitable, generating $222.8M in net income for the fiscal year ending 2025 with a net profit margin of 1.8%.
Chewy, Inc. (CHWY) reported an operating income of $254.3M, resulting in an operating profit margin of 2.0%. This margin reflects the operational efficiency of the business before interest and taxes.
Chewy, Inc. (CHWY) generated $3.75B in gross profit for the year, representing a gross profit margin of 29.8%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Margin pressure from fulfillment costs
Metrics are mathematically derived from official filings.
Decelerating but Stable Revenue Growth
Revenue growth has moderated from double-digit levels to a more sustainable mid-single-digit pace, with recent quarters showing 7.3% and 4.8% year-over-year growth, suggesting a maturation of the customer base.
The transition from high-teens growth to a more normalized 4-8% range indicates the company is shifting its focus from aggressive customer acquisition to monetizing its existing base through higher spend per customer. This deceleration appears deliberate and healthy, as it aligns with the company's strategic pivot toward profitability and cash flow generation rather than top-line expansion at any cost. The consistency of this growth rate across recent quarters suggests it is a new baseline, not a temporary lull.
Structural Gross Margin Ceiling
Gross margins have stabilized in the 29-30% range, which appears to represent a structural ceiling for a high-volume retailer of third-party consumables without significant private-label penetration.
The tight band of 28.5% to 30.4% over ten quarters indicates limited pricing power in a competitive pet food market where Amazon and Walmart are persistent rivals. While the mix-shift toward the higher-margin Health segment provides some support, the core Consumables business, which drives the majority of revenue, is inherently low-margin. This suggests that meaningful gross margin expansion will be difficult to achieve without a fundamental shift in product mix or a successful push into proprietary brands.
Operating Leverage Emerging
Operating income has scaled from a loss of $9.7M in 2024Q4 to nearly $100M in 2026Q2, demonstrating that incremental revenue is now translating to profit at a significantly higher rate than in prior periods.
The improvement in operating margin from -0.3% to 3.0% over two years, while revenue grew, points to effective control of SG&A expenses, which have not risen proportionally with sales. This operating leverage appears to be a direct result of the company's investments in fulfillment automation and marketing efficiency. However, the margin remains thin compared to peers like Freshpet, indicating that further leverage is needed to reach a more defensible profitability level.
SG&A Efficiency as a Key Driver
Selling, general, and administrative expenses have shown disciplined management, growing slower than revenue and comprising roughly 26-28% of sales in recent quarters, which is critical for profitability.
The company's ability to hold SG&A relatively flat while growing revenue is the primary engine behind its return to consistent operating profitability. This efficiency likely stems from reduced customer acquisition costs as the Autoship model matures and from leveraging its established logistics network. The absence of significant R&D spending in recent quarters further underscores a focus on optimizing existing operations rather than heavy investment in new, unproven ventures.
Pivot to Profitable Growth
The inflection point appears to be 2025Q1, where the company sustained an operating margin of 2.5% on stable revenue, marking the beginning of a consistent profitability trend after prior volatile quarters.
This quarter represents a clear break from the erratic profitability seen in 2024, where swings from loss to profit suggested an unstable cost structure. The sustained positive operating margins since then, despite slower revenue growth, indicate that the business model has matured to a point where it can generate earnings reliably. This shift fundamentally changes the investment thesis from one of speculative growth to one of steady, cash-generative operations.
Thin Margins Vulnerable to Cost Spikes
Despite recent profitability, the operating margin of just 3.0% in 2026Q2 leaves minimal buffer against input cost inflation, particularly in fuel and shipping, which could rapidly erode earnings.
The company's cost structure is heavily exposed to variable fulfillment and transportation expenses. A spike in diesel prices or a carrier rate increase would flow directly to COGS and SG&A, compressing margins that are already razor-thin compared to a peer like Petco (38.7% gross margin). This vulnerability is heightened by the company's reliance on shipping bulky, heavy goods. While management highlights operational efficiencies, the financial data shows that even modest cost pressures could swing the company back into a loss-making position.