Wayfair Swings to Profit as Third-Quarter Sales Climb 10%

Wayfair turned profitable in the third quarter as total net revenue climbed 9.7% year over year to $3.42 billion, marking the online furniture retailer's strongest quarterly sales growth since the pandemic. The results surpassed Wall Street expectations for both revenue and adjusted profit, sending the company's shares up approximately 10% on Wednesday.

For the three-month period ended Sept. 30, the Boston-based retailer posted net income of $62 million, or 45 cents per share, reversing a net loss of $99 million, or 76 cents per share, reported in the third quarter of 2025. Excluding one-off items, adjusted earnings reached 93 cents per share, comfortably clearing the 79 cents per share anticipated by analysts surveyed by LSEG. Revenue also topped the $3.38 billion consensus forecast.

Domestic transactions powered the rebound. U.S. net revenue increased 11.4% year over year to roughly $3 billion, insulating the business from overseas headwinds where international revenue fell 2.3% to $380 million. Operating indicators strengthened across the platform: active customers increased 4.7% year over year to 22.2 million, while delivered orders climbed 12.2% to approximately 11 million.

The acceleration arrived despite a muted housing environment that has constrained broad consumer spending on home furnishings. In an interview with [CNBC Business](https://www.cnbc.com/2026/11/04/wayfair-w-q3-2026-earnings.html), Wayfair Chief Financial Officer Kate Gulliver attributed the expansion to competitive displacement rather than a rising macroeconomic tide. "We see the overall consumer in the U.S. in this category, we think it's roughly flattish, and so that's our [market] share momentum continuing to build," Gulliver said.

Gulliver highlighted repeat customer loyalty, physical storefront openings, an expanded luxury furnishings division, and sharp value pricing as key drivers attracting shoppers across both budget and upscale price points. Discounting levels held steady rather than accelerating, with promotional activity remaining "very consistent with last year," Gulliver told CNBC Business, adding that higher operational volume flowed directly into EBITDA and positive quarterly net income.

Wayfair enters the fourth-quarter holiday shopping period facing the operational test of whether its current balance of promotional pricing, brick-and-mortar storefronts, and premium assortment can sustain market share gains amid peak year-end retail competition.