Chewy, Inc. (CHWY) released its fourth quarter and full-year earnings report on Wednesday, March 25. The online pet supply company’s stock rose almost 7% following the release of the report.  

The company reported net sales of $3.26 billion for the quarter. This was up from $3.25 billion in the same quarter last year and below analysts’ expectations of $3.27 billion. Net sales for the full year came in at $12.60 billion, up 6.2% from net sales of $11.86 billion in the year prior.

“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 Chewy CEO, Sumit Singh. “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.”

The company reported net income of $39.2 million this quarter or $0.09 per adjusted share. This was an increase in net income of $22.8 million or $0.05 per adjusted share during the same time last year. Net income for the full year was $222.8 million, down from $392.7 million last year.

Chewy reported 21.3 million active customers in the quarter, up 4.0% compared to this time last year. The company’s net sales per active customer increased to $591, a 2.2% increase compared to a year ago. Chewy’s Autoship subscription program, which allows customers to automatically reorder products, increased sales by almost 5% to $2.74 billion for the fourth quarter. For the full year of fiscal 2026, Chewy expects 8% to 9% growth in net sales ranging between $13.6 billion and $13.75 billion.

Chewy, Inc. (CHWY) shares ended the week at $26.12, up 10% for the week.

Cintas Posts Earnings

Cintas Corporation (CTAS), a uniform rental and facility cleaning supply company, released its third quarter earnings report on Wednesday, March 25. With the company reporting increased revenue, its stock rose by roughly 3% following the earnings announcement.

Revenue for the third quarter reached $2.84 billion, up 8.9% from revenue of $2.61 billion reported during the same quarter last year. This exceeded analysts’ expectations of $2.82 billion.

“We delivered another successful quarter with record revenues and strong operating margins,” said Cintas’ CEO, Todd Schneider. “Our diversified customer base, proven track record of execution and world-class employee-partners position us exceptionally well for continued growth. We remain committed to our balanced capital allocation strategy and delivering value for our shareholders and our customers." 

Cintas reported quarterly net income of $502.5 million or $1.24 per diluted share. This was up from $463.5 million or $1.13 per diluted share during the same quarter last year.

The company’s uniform rental and facility services segment grew 7.7% year-over-year, reaching $2.18 billion. The first aid and safety services segment reported $346.82 million in revenue. Operating income came in at $659.9 million, an increase of 8.2% compared to last year’s third quarter. Throughout the quarter, Cintas paid dividends totaling $180.0 million to shareholders. The company updated its full fiscal year guidance and expects annual revenue to be between $11.21 billion to $11.24 billion.

Cintas (CTAS) shares closed at $165.71, down 9% for the week.

Paychex Releases Earnings Report

Paychex, Inc. (PAYX) released its third quarter earnings report on Wednesday, March 25. The payroll service provider’s shares climbed by nearly 5% following the release of the report.

For the quarter, the company reported total revenue of $1.81 billion. This was up 20% from $1.51 billion in the same quarter last year and beat analysts' expectations of $1.78 billion.

“This quarter, we delivered strong double-digit growth in revenue and operating income and accelerated our organic revenue growth, driven by effective execution and progress on our strategic priorities," said Paychex CEO, John Gibson. "In a dynamic regulatory and macro environment, clients are increasingly relying on our comprehensive advisory and benefits solutions to help navigate complex, compliance-critical HR and workforce challenges, underscoring the breadth and differentiated value of our expert-enabled technology and advisory offerings."

Paychex posted net income of $560.3 million or $1.56 per adjusted share for the quarter. This was up from net income of $519.3 million or $1.43 per adjusted share this time last year.

The Rochester, New York-based company saw an increase in revenue across its service segments. Professional Employer Organization (PEO) and Insurance Solutions revenue increased 9% to $397.5 million for the quarter. Management Solutions revenue rose 23% to $1.4 billion for the third quarter. The company’s total expenses reached over $1.0 billion, a 24% increase from $817.2 million year-over-year, primarily due to increased technology spending and costs related to the acquisition of Paycor.

Paychex, Inc. (PAYX) shares closed at $91.68, down 2% for the week.

The Dow started the week of 3/23 at 45,804 and closed at 45,167 on 3/27. The S&P 500 started the week at 6,575 and closed at 6,369. The NASDAQ opened the week at 21,996 and closed at 20,948.

U.S. Treasury yields varied early in the week as markets reacted to the latest news surrounding the Iran conflict. Yields rose toward the end of the week as the latest employment data indicate a stable labor market.

Earlier in the week, the United States announced a temporary pause in military action related to the Iran conflict. Markets responded positively to reports that more ships would be permitted to pass through the Strait of Hormuz shipping channel. However, subsequent conflicting negotiation reports have renewed concerns related to inflation, rising gas prices and potential deficits due to continued spending.

"There is still a lot of confusion and lack of clarity about Iran and how long the military operations will last and what the consequences for oil and global trade are," said senior vice president and advisor at Wealthspire Advisors, Oliver Pursche. "Today we are seeing a little bit more negative sentiment seep back into markets."

The benchmark 10-year Treasury note yield opened the week of March 23 at 4.39% and traded as high as 4.43% on Thursday. The 30-year Treasury bond opened the week at 4.94% and traded as high as 4.96% on Thursday.

On Thursday, the U.S. Department of Labor reported that initial claims for unemployment increased by 5,000 to 210,000 for the week ending March 21, in line with economists’ expectations. Continuing claims decreased by 32,000 to 1.82 million.

"It takes time for companies to recognize what a shock like this means for the economy, and then to have the conviction needed to start shedding workers," said chief economist at High Frequency Economics, Carl Weinberg. "Things will decay, we are sure. However, they have not started to decay yet."

The 10-year Treasury note yield finished the week of 3/23 at 4.44% while the 30-year Treasury note yield finished the week at 4.97%.

Freddie Mac released its latest Primary Mortgage Market Survey on Thursday, March 26. The survey showed mortgage rates increasing for the third week in a row. 

This week, the 30-year fixed rate mortgage averaged 6.38%, up from last week’s average of 6.22%. Last year at this time, the 30-year fixed rate mortgage averaged 6.65%.

The 15-year fixed rate mortgage averaged 5.75% this week, up from last week’s 5.54%. During the same week last year, the 15-year fixed rate mortgage averaged 5.89%.

"Mortgage rates this week averaged 6.38%," said chief economist at Freddie Mac, Sam Khater. “The housing market continues to show gradual improvements compared to a year ago amid recent rate volatility. Purchase and refinance applications are up year-over-year, and rates remain lower than last year when they averaged 6.65%.”

Based on published national averages, the savings rate was 0.39% as of 3/16. The one-year CD averaged 1.52%.

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