Investing.com -- Chewy Inc. (NYSE: CHWY) reported fourth-quarter adjusted earnings that significantly exceeded analyst expectations, sending shares up 11.3% in premarket trading as investors responded positively.

The company posted adjusted earnings per share of $0.27 for the fourth quarter, beating the analyst consensus of $0.09 by $0.18. Revenue reached $3.26 billion, matching analyst estimates and representing an 8.1% increase on a normalized 13-week basis compared to the prior year period. On a reported basis, revenue rose 0.5% YoY, reflecting the impact of the quarter having 13 weeks versus 14 weeks in the prior year period.

Gross margin for the quarter expanded 90 basis points YoY to 29.4%, while adjusted EBITDA margin improved 120 basis points to 5.0%. Adjusted EBITDA totaled $162.3 million, an increase of $37.8 million YoY.

"We exited 2025 from a position of real strength: $12.6 billion in net sales or 8.3% growth, $719 million of adjusted EBITDA or 26% growth, record free cash flow of $562 million, and 21.3 million active customers," said Sumit Singh, Chief Executive Officer of Chewy. "That performance underscores the durability of the Chewy model and gives us confidence in our ability to deliver continued profitable growth, expanding margins, and strong cash generation in 2026 and beyond."

For the full fiscal year 2025, Chewy reported net sales of $12.60 billion, up 8.3% on a normalized 52-week basis. Adjusted EBITDA reached $719.2 million, an increase of $148.7 million YoY, with adjusted EBITDA margin expanding 90 basis points to 5.7%. The company generated record free cash flow of $562 million for the year.