- Chewy reported a fourth-quarter revenue of $3.26 billion and an adjusted earnings per share of $0.28.
- Singh said that although demand stays strong, the industry is not expected to experience a short-term cyclical boost.
- Singh also highlighted an ongoing transition toward online shopping.
Chewy Inc. (CHWY) CEO Sumit Singh has signaled a steady but unspectacular road ahead for the pet care industry, projecting stability rather than a surge in growth through 2026.
Singh emphasized that while demand remains resilient, the sector is unlikely to see a sharp cyclical upswing in the near term. Chewy reported a fourth-quarter (Q4) revenue of $3.26 billion and an adjusted earnings per share (EPS) of $0.28, both in line with the analysts’ consensus estimates, according to Fiscal AI data.
Industry Remains Stable With Growth Driven By Volume
In the Q4 earnings call, Singh said the company expects next year’s conditions to closely resemble those in 2025, with consistent demand patterns and no significant decline in pet ownership. However, he added that he is not factoring in a strong rebound in household pet formation as a catalyst for growth, suggesting a more measured trajectory for the broader market.
“We expect 2026 pet industry dynamics to largely mirror 2025, steady and resilient to macro trends but without cyclical acceleration.”
-Sumit Singh, CEO, Chewy
Singh anticipates that industry-wide expansion will come largely from increased sales volume rather than higher prices. This reflects an environment where spending remains steady, but price sensitivity persists. As a result, revenue gains are expected to rely more on unit demand than pricing power.
Chewy stock traded over 13% higher on Wednesday afternoon. On Stocktwits, retail sentiment around the stock changed to ‘extremely bullish’ from ‘bullish’ territory the previous day. Message volume shifted to ‘extremely high’ from ‘normal’ levels in 24 hours.
Shift Toward E-Commerce And Focus On AI
Singh also highlighted an ongoing transition toward online shopping, as customers increasingly favor convenience, transparency, and subscription-based replenishment models.
The CEO also noted that Chewy is deploying artificial intelligence tools to refine search accuracy, enhance product discovery, and deliver more tailored shopping experiences.
At the same time, the company is monitoring the rise of “agentic commerce,” an emerging model that could open new avenues for demand generation and distribution.
CHWY stock has declined by over 19% year-to-date.
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