Wayfair posted third quarter results that beat Wall Street estimates on revenue and earnings as the company works to win market share and advance through new initiatives.
Net income was $62 million, or 45 cents per diluted share, versus a net loss of $99 million, or 76 cents per diluted share, in the quarter a year previous, the company noted. Adjusted net income was $133 million, or 93 cents per diluted share, versus $110 million, or 70 cents per diluted share, in the year-before period.
A Zacks Investment Research analyst consensus estimate called for net earnings or 83 cents per adjusted diluted share versus revenue of $3.37 billion.
Net revenue was $3.42 billion versus $3.12 billion in the year-earlier quarter. Operating income was $106 million versus $38 million in the year-before period.
Active customers totaled 22.2 million as of September 30, 2026, a 4.7% gain year over year., Wayfair reported.
Niraj Shah, CEO, Wayfair co-founder and co-chairman (pictured above), said in a conference call the company had a dynamic quarter as consumer activity grew sales.
“That growth was driven by orders, which were up 12% year-over-year,” Shah said. “That translated to strength in customer growth, with active customers up more than 4% and new customer orders up over 14%, another post-pandemic record.”
Commenting on the company’s evolution, including its drive to build more brick-and-mortar stores, Shah said, “One of the things we have been very excited about, what we have seen, for example, with stores, is that it does make us much more obvious and a strong source for all these frequency items: decor, bedding, housewares. That has been exciting.”
Shah added the company is growing across multiple dimensions as it continues to develop businesses where it sees particular opportunity.
“We are growing the large appliances business,” he said. “There are very few folks who have selection from LG and Samsung and GE and Electrolux and the majors, and we are one of a handful. And I think we are particularly well-positioned to build that business.”
In announcing the third-quarter results, Shah said, “Q3 was our strongest quarter of growth in the post-pandemic period, with total net revenue up 9.7% year-over-year and our U.S. business growing over 11%. That growth flowed through nicely to the bottom line, with an adjusted EBITDA margin of 6.9%, our best Q3 result since 2020. At the start of this year, we told you we expected to take share in the U.S. at a pace we had not seen in several years. With U.S. revenue growing double digits against a roughly flat category here in Q3, we’ve done exactly that. That growth was driven by orders, which were up 12% year-over-year, and active customers up more than 4%. The momentum we have on orders and customers give us confidence that our share gains are structural, and we are still in the early innings.”
In his analysis of Wayfair’s third quarter, which suggested the home furnishings market is being driven by household refreshes in a sluggish residential housing market, Michael Gunther, senior vice president of research and market intelligence at data firm Consumer Edge, said, “Wayfair reported 11.4% U.S. revenue growth in Q3, its strongest quarter of growth since the pandemic, as the company continues to gain market share in a home furnishings industry constrained by sluggish housing turnover.
“Consumer Edge U.S. credit and debit card data shows Wayfair has gained spending share within home furnishings in 10 of the past 11 quarters on a year-over-year basis, highlighting the consistency of its competitive gains,” Gunther continued. ” In Q3 2026, the company’s share increased approximately 40 basis points compared to the prior year quarter. Management emphasized that its U.S. growth was driven by market-share gains against a roughly flat category, citing customer loyalty, physical store expansion, its luxury business and an emphasis on value as contributing factors.”
