It has been about a month since the last earnings report for Chewy (CHWY - Free Report) . Shares have lost about 10.3% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Chewy due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for Chewy before we dive into how investors and analysts have reacted as of late.
CHWY Q2 Earnings Meet Estimates, Sales Beat on Customer GrowthChewy reported second-quarter fiscal 2026 adjusted earnings of 36 cents a share, which rose 9.1% year over year and came in line with the Zacks Consensus Estimate. Net sales increased 7.3% to $3,330.2 million, topping the consensus mark of $3,322 million.
Results reflected customer growth, market share gains and disciplined execution. Chewy added 208,000 net active customers sequentially, excluding additions related to Modern Animal, while its customer funnel remained healthy across acquisition, retention and reactivation.
CHWY's Customer Base Keeps ExpandingOrganic net sales, excluding SmartPak and Modern Animal, rose 5.7% year over year. Active customers increased 3.8% to 21.705 million, while net sales per active customer advanced 1.9% to $602.
On a normalized basis, adjusting for the extra week in the prior-year comparable period, net sales per active customer increased 3.8%. Management cited customer cohort maturation, greater engagement across health and pharmacy, and broader cross-category adoption as supports.
Chewy's Autoship Mix Reinforces Recurring SalesAutoship customer sales climbed 9.3% to $2,817.2 million and represented 84.6% of total net sales. The program continued to grow faster than the overall business, reinforcing the recurring nature of Chewy's revenue base.
Consumer pressure remained visible in discretionary areas. Treat sales slowed more sharply than core food, while premiumization and discretionary attachment stayed pressured. Even so, mid-teens hard goods growth substantially outpaced the broader market, and Pet Health and Specialty Products delivered strong organic growth.
CHWY's Margins Benefit From Cost DisciplineGross margin was 30.4%, flat year over year and up 30 basis points sequentially. Adjusted EBITDA increased 23.7% to $226.7 million, supported by sponsored ads, disciplined promotional activity and lower variable cost to serve.
About $10 million of upside came from timing-related benefits, mainly earlier tariff refunds and shifted rebates. More than $5 million came from discrete items, including gift-card breakage, inventory adjustments and vendor-funded merchandising. Adjusted SG&A declined to 18.4% of sales from 19.1%, reflecting fulfillment utilization, automation and productivity gains.
Chewy Health and AI Add Growth LeversChewy Vet Care again generated triple-digit revenue growth, while the fresh and frozen portfolio posted triple-digit unit growth. The equine, farm and exotics business delivered a seventh consecutive quarter of mid-double-digit sales growth. Modern Animal and SmartPak also performed ahead of prior expectations.
AI initiatives are moving into scaled deployment. Kai, Chewy's customer-facing AI assistant, resolved about 30% of chats through self-service in early use. Management still expects AI-related initiatives to generate low tens of millions of dollars in fiscal 2026 cost savings, scaling to about $50 million annualized in fiscal 2027.
CHWY's Cash Flow Supports Capital ReturnsFree cash flow fell 15.5% year over year to $89.5 million, reflecting $137.4 million of operating cash flow and $47.9 million of capital expenditures. Chewy ended the quarter with $612 million of cash, cash equivalents and marketable securities and more than $1 billion of total available liquidity.
The company deployed $200 million toward share repurchases and bought back 9.9 million shares in the quarter. It also completed the $400 million Modern Animal acquisition and raised $600 million through its inaugural term loan issuance.
Chewy Raises Fiscal 2026 OutlookChewy expects fiscal 2026 net sales between $13.46 billion and $13.57 billion, implying reported growth of 6.8%-7.7% and organic growth of 5.5%-6.3%. Management had earlier guided net sales in the band of $13.40-$13.55 billion. Adjusted EBITDA margin is projected at 6.7%-6.8%, with the low end raised by 10 basis points from the prior range.
For the third quarter, net sales are expected at $3.323-$3.358 billion, with adjusted EBITDA margin of 6.6%-6.7% and adjusted earnings of around 39 cents a share. The outlook assumes no meaningful consumer recovery and continued low pricing contribution, while management expects Chewy to keep gaining share.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in fresh estimates.
VGM ScoresCurrently, Chewy has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a grade of B on the value side, putting it in the second quintile for value investors.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Chewy has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
Key Takeaways CHWY's Vet Care portfolio delivered triple-digit revenue growth in the second quarter.CHWY's Vet Care showed strong customer satisfaction and retention with compelling clinic economics.CHWY expects Health to deepen engagement and expand wallet share as Vet Care and Modern Animal scale. Chewy, Inc. (CHWY - Free Report) highlighted that its Vet Care business continues to scale in line with the economic framework outlined at the company’s recent investor event. The total clinic portfolio delivered triple-digit revenue growth in the second quarter, underscoring the momentum in the Vet Care business. The continued scaling of Chewy Vet Care and its triple-digit revenue growth reflect the progress the business is making against the economic framework previously outlined by management.
Chewy Vet Care continues to demonstrate strong performance across several key areas. The business is delivering strong customer satisfaction while maintaining attractive veterinarian productivity and retention. It is also demonstrating compelling four-wall economics, another positive indicator of the performance of its clinic model. Importantly, Chewy Vet Care is also driving incremental engagement across the broader ecosystem. Together, these factors underscore the progress Chewy Vet Care is making as the business continues to scale.
Chewy is encouraged by the progress across its Chewy Health business, supported by the early performance of Modern Animal and the continued scaling of Chewy Vet Care. As these businesses continue to grow, the company believes they can deepen customer engagement and expand wallet share, while becoming an increasingly meaningful contributor to Chewy’s long-term growth and earnings power. Importantly, the company’s outlook does not depend on a meaningful recovery in the broader pet category, while management continues to see meaningful growth opportunities as Chewy Health scales.
Overall, the continued expansion of Chewy Health is expected to deepen customer engagement, expand wallet share and become an increasingly meaningful contributor to Chewy’s long-term growth and earnings power.
The Zacks Rundown for CHWYShares of this Zacks Rank #4 (Sell) company have lost 28% in the past six months against the industry’s growth of 16.7%.
Image Source: Zacks Investment Research
From a valuation standpoint, CHWY trades at a forward price-to-earnings ratio of 19.42, slightly lower than the industry’s average of 20.23.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CHWY’s current and next fiscal year earnings implies a year-over-year rise of 20.5% and 21.4%, respectively.
Image Source: Zacks Investment Research
Stocks to ConsiderSome better-ranked stocks have been discussed below:
Petco Health & Wellness Company, Inc. (WOOF - Free Report) operates as a pet specialty retailer, focusing on enhancing the lives of pets, pet parents, and its Petco partners in the United States, Mexico, Puerto Rico, and Chile. At present, WOOF carries a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for WOOF’s current fiscal-year sales and earnings indicates growth of 0.6% and 100%, respectively, from the year-ago figures. WOOF delivered a trailing four-quarter earnings surprise of 166.7%, on average.
Phibro Animal Health Corporation (PAHC - Free Report) operates as an animal health and mineral nutrition company in the United States, Latin America and Canada, Europe, the Middle East, Africa, and the Asia Pacific. PAHC presently carries a Zacks Rank of 1.
The Zacks Consensus Estimate for PAHC's current fiscal-year sales and earnings implies growth of 3.8% and 8.7%, respectively, from the year-ago actuals. PAHC delivered a trailing four-quarter earnings surprise of 18.4%, on average.
Central Garden & Pet Company (CENTA - Free Report) produces and distributes various products for the lawn and garden and pet supplies markets in the United States. It currently carries a Zacks Rank of 2 (Buy).
The Zacks Consensus Estimate for Central Garden’s current financial-year sales implies a decline of 3.9%, and the same for earnings implies growth of 9.2% from the year-ago reported numbers. Central Garden delivered a trailing four-quarter earnings surprise of 41.8%, on average.
Key Takeaways CHWY raised fiscal 2026 sales guidance to $13.46-$13.57 billion, implying 6.8%-7.7% growth.CHWY expects AI initiatives to save low tens of millions in 2026 and about $50 million annualized in 2027.CHWY's adjusted EBITDA rose 23.7%, though timing and discrete benefits aided second-quarter results. Chewy, Inc. (CHWY - Free Report) raised its fiscal 2026 outlook after second-quarter sales growth, customer gains and operating efficiencies supported a better full-year view. The update is notable because management is not assuming a meaningful recovery in consumer spending.
The outlook also reflects contributions from acquired businesses and early AI savings. Investors still have to weigh softer discretionary demand, temporary margin benefits and mixed earnings-revision signals.
Chewy Raises Its Full-Year Sales OutlookChewy now expects fiscal 2026 net sales of $13.46-$13.57 billion, implying growth of 6.8%-7.7%. The prior range was $13.40-$13.55 billion. Organic sales growth is projected to be in the range of 5.5%-6.3%.
SmartPak and Modern Animal are contributing above prior assumptions. Autoship customer sales rose 9.3% to $2.82 billion and represented 84.6% of second-quarter net sales, while active customers increased 3.8% to 21.7 million.
Chewy Expands Its Profitability OutlookManagement raised the low end of adjusted EBITDA margin guidance by 10 basis points, bringing the fiscal 2026 range to 6.7%-6.8%. At the midpoint of the sales and margin ranges, the outlook implies adjusted EBITDA of about $912 million.
The second-quarter margin picture also showed structural gains. Adjusted SG&A fell to 18.4% of sales from 19.1% a year earlier, helped by fulfillment utilization, automation and lower variable cost to serve.
AI Adds a New Efficiency LeverChewy expects AI-related initiatives to generate cost savings in the low tens of millions of dollars in fiscal 2026 and approximately $50 million on an annualized basis in fiscal 2027.
Kai, Chewy's customer-facing AI assistant, resolved roughly 30% of chats through self-service in early use. The company is also deploying AI tools across customer care, pharmacy and veterinary operations to reduce manual work and improve productivity.
Q2 Results Reveal the Outlook's CaveatsSecond-quarter net sales rose 7.3% to $3.33 billion, while adjusted EBITDA increased 23.7% to $226.7 million. Adjusted earnings of 36 cents per share rose 9.1% year over year and matched the Zacks Consensus Estimate.
The profit upside was not entirely recurring. About $10 million came from timing-related benefits, while more than $5 million reflected discrete items. Management said that these items accounted for essentially all of the adjusted EBITDA outperformance versus expectations. Discretionary spending and premiumization also remained pressured.
Earnings Momentum Meets the Zacks SignalsChewy's earnings trajectory remains positive even as estimate revisions have softened. The Zacks Consensus Estimate for fiscal 2026 earnings is pegged at $1.53 per share, up 20.5% from fiscal 2025, but the estimate has declined 3.6% over the past four weeks. Fiscal 2027 earnings are expected to be $1.86 per share.
Valuation has contracted alongside share-price weakness. CHWY trades at 19.44X forward earnings.
Image Source: Zacks Investment Research
Freshpet, Inc. (FRPT - Free Report) focuses on fresh, refrigerated pet food and trades at 35.14X forward earnings. Petco Health and Wellness Company, Inc. (WOOF - Free Report) operates across pet retail, services and health and trades at 20.46X forward earnings. Different business mixes limit direct comparisons, but the figures provide context for Chewy's current multiple.
Chewy currently carries a Zacks Rank #4 (Sell), alongside a Growth Score of A, a Value Score of B, a VGM Score of A and a Momentum Score of D.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The favorable Growth and VGM Scores point to supportive growth and blended style characteristics, but the Zacks Rank and Momentum Score indicate weaker near-term estimate and price trends. That combination keeps the improved operating outlook in balance with softer revisions, consumer pressure and execution risk.
Chewy, Petco i General Mills hlásí stejný trend: zájem o kočky sílí, zatímco poptávka po psech slábne. Vlastnictví koček v roce 2025 vzrostlo o 5 % na odhadovaných 53 milionů domácností.
Three pet industry CEOs have all flagged the same unexpected split in consumer behavior, and it is quietly reshaping where billions in annual pet spending actually land.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
Chewy (NYSE:CHWY | CHWY Price Prediction) chief executive Sumit Singh said on the company’s September 9 earnings call that “dog seems to be worsening; cat seems to be strengthening”. The same shift appeared on earnings calls from two other pet-industry executives in the past three weeks.
Petco Echoes the Cat Momentum Petco Health & Wellness (NASDAQ:WOOF) chief executive Joel D. Anderson said “In the second quarter, we introduced new high-impact brands that resonate strongly with cat parents, generating nice gains across consumables, supplements, bedding and furniture.” Anderson also noted “The dog business is still soft. Adoptions are down slightly.” Petco launched its cat treat brand Candy Shop on September 2, according to CNBC.
General Mills Sees the Same Split in the Data General Mills (NYSE:GIS) reported double-digit percentage growth in cat food sales including its Tiki Cat brand, while dog food sales fell by a high digit percentage. Chief executive Jeff Harmening attributed the trend to Americans adopting more cats and fewer dogs.
General Mills chief operating officer Dana McNabb said “We really have to relook at the entire proposition of the product, the packaging, the marketing, the communication, we have work to do.” Part of the dog weakness stems from execution as well as demand.
Ownership Data Backs the Shift Per CNBC citing the American Pet Products Association, cat ownership rose 5% in 2025, with an estimated 53 million households having cats. That followed a 23% surge in 2024. Dog ownership also grew, rising from 51% of US households in 2024 to 53% in 2025. Both are growing. Cats are gaining share faster.
Per Morgan Stanley’s 2026 pet industry outlook, analyst Gutman noted cats typically require lower overall spending than dogs across healthcare, food and accessories, an appealing profile as 22% of pet owners report cutting back spending overall, up 10 percentage points from 2024, according to CNBC. Dogs still cost far more per animal. Average annual spending per dog rose from roughly $1,200 in 2015 to over $2,400 in 2025, while cat spending went from roughly $800 to roughly $1,600, according to CNBC.
Chewy Beat, Raised Guidance, Stock Still Down Chewy posted second-quarter net sales of $3.33 billion, up 7.3% year over year at the high end of guidance, adjusted EPS of $0.36 against roughly $0.18 expected, and raised full-year sales guidance to $13.46 billion to $13.57 billion. Petco delivered roughly $1.5 billion in Q2 net sales with comparable sales up 0.6%, and management expects dog demand to improve in 2027.
Chewy traded at $18.60 as of 11:55 AM Eastern on September 24, 2026, up 0.24% on the day, on a roughly fifteen-minute delay, according to CNBC. The stock is down 43.72% year to date from $33.05, down 51.39% over one year, down 24.08% over the past month and down 11.05% over the past week, according to CNBC. The company beat, raised guidance, and is riding a category tailwind. The stock has still lost roughly half its value over twelve months.
Contact [email protected] for any questions or corrections.
CHWY za měsíc spadl o 24,9 %, zatímco výhled zisku pro letošní fiskální rok klesl o 3,6 %. Tržby z Autoshipu ale vzrostly o 9,3 % a tvořily 84,6 % čistých tržeb ve 2. čtvrtletí.
Key Takeaways CHWY shares fell 24.9% in a month as earnings estimates declined 3.6% over the same period.CHWY's Autoship sales rose 9.3% and accounted for 84.6% of second-quarter net sales.CHWY trades at 0.53X forward sales, near its five-year low, as margin and demand pressures persist. Chewy, Inc. (CHWY - Free Report) shares have plunged 24.9% in the past month, sharpening the debate over whether improving operating fundamentals can offset softer consumer demand, margin normalization and weaker estimate momentum.
Image Source: Zacks Investment Research
The pullback has pushed valuation close to a five-year low. Yet recurring Autoship sales, customer growth and expansion in pet health continue to provide operating support, leaving investors to weigh a cheaper entry point against near-term execution risks.
Chewy’s One-Month Slide Resets the DebateThe stock’s 24.9% four-week decline comes with a 3.6% reduction in the current fiscal-year earnings estimate over the same period. That combination adds caution for investors looking for evidence that sentiment and expectations have stabilized.
Chewy’s second-quarter fiscal 2026 results were firmer operationally. Net sales rose 7.3% year over year to $3.33 billion, while adjusted EBITDA increased to $226.7 million. The contrast between business performance and falling estimates makes the reset in market expectations the central issue.
CHWY Growth Drivers Remain IntactAutoship customer sales increased 9.3% year over year and represented 84.6% of total net sales in the second quarter. Active customers reached 21.7 million, while net sales per active customer rose to $602, supporting the recurring-revenue and engagement story.
Health, pharmacy and newer offerings add growth avenues beyond core retail. Freshpet, Inc. (FRPT - Free Report) also shows that parts of the pet market remain capable of faster expansion, with second-quarter 2026 net sales rising 15.5% to $305.6 million. That performance provides useful context for category demand and competitive intensity.
Chewy Faces Consumer and Margin PressurePressure remains visible in discretionary purchases and premiumization. Treat sales growth slowed more sharply than core food in the second quarter, while management said broader discretionary attachment remained pressured across consumables and hard goods.
Profitability also benefited from items that may not repeat. Roughly $10 million of second-quarter upside came from timing-related benefits, while more than $5 million reflected discrete items. Management expects gross margin to decline modestly sequentially in the third quarter as those benefits normalize.
CHWY Valuation Near a Five-Year LowCHWY trades at 0.53X forward 12-month sales, only slightly above its five-year low of 0.52X and well below the five-year median of 1.12X. The discount is substantial, but weaker estimates and consumer pressure can keep a low multiple from rerating quickly.
Image Source: Zacks Investment Research
Petco Health and Wellness Company, Inc. (WOOF - Free Report) offers another industry reference point. Petco reported second-quarter 2026 net sales of about $1.5 billion, up 0.05%, while comparable sales increased 0.6%. The mixed peer backdrop reinforces that valuation should be considered alongside each company’s growth, margin and execution profile.
Chewy’s Signals Still Point to CautionChewy’s lower valuation and recurring sales base provide support, but the recent share decline, estimate cuts and margin normalization keep the near-term setup unsettled. The key question is whether operating gains can continue while discretionary demand remains soft and temporary profit benefits fade.
CHWY currently carries a Zacks Rank #4 (Sell). It has a Growth Score of A, a Value Score of B, a Momentum Score of C and a VGM Score of A. The favorable growth and value characteristics contrast with weaker near-term earnings-revision signals, underscoring the difference between an inexpensive stock and one whose expectations have fully reset.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Chewy se soustředí na zdravotní služby pro domácí mazlíčky, AI a veterinární kliniky, aby podpořila další růst. Firma uvádí, že její zdravotní byznys už tvoří zhruba 4 miliardy USD inkrementálních příjmů.
MarketBeat Week in Review – 09/07 - 09/11Chewy NYSE: CHWY is prioritizing U.S. health services, customer spending expansion and artificial intelligence capabilities as it seeks to build on its pet retail foundation, Chief Executive Officer Sumit Singh said during a Goldman Sachs conference fireside chat.
Singh said the company’s investment in supply chain and technical infrastructure, coupled with Autoship adoption across food and medication categories, has created a more stable base for reinvestment. He characterized pet health as a roughly $50 billion total addressable market, including an estimated $12 billion to $15 billion in products such as medications, prescription diets, supplements and flea-and-tick treatments.
Get Chewy alerts:
Chewy’s Sell-Off Puts Its Recurring Revenue Story Back on Trial for InvestorsChewy entered the health category in 2018 and has become the country’s largest pet pharmacy, Singh said. He added that the company is capturing about $0.70 of every dollar moving online in the pet medications and related product space. Over the past six years, Chewy added approximately $9 billion in incremental revenue, with about $4 billion coming from Chewy Health, according to Singh.
Consumer demand and customer growth Singh said consumer enthusiasm for discretionary pet categories has softened, particularly following what he described as increased marketplace stress beginning in March and April. The company saw pressure on attachment rates, or purchases of additional products beyond core needs, and adjusted its forecast accordingly.
Chewy’s Growth Engine Is Stronger Than the Market ThinksHowever, he said trends have since stabilized. Adoptions and relinquishments are “roughly at parity,” while Chewy’s food and medication businesses remain strong and health services are outperforming the company’s expectations relative to its April outlook.
Singh said shelter and rescue organizations account for roughly two-thirds to 70% of pet adoptions, while breeders represent the remainder. He said dogs are modestly underperforming and cats are outperforming at shelters and rescues, resulting in an overall balanced adoption picture. He also said breeders of certain popular breeds have not seen a slowdown in litter production, though puppy prices have risen.
While normalized annual pet additions to the market would typically total 10 million to 12 million, Singh said the current figure is running below that level. Even so, Chewy’s gross customer additions from consumers shifting from other retailers are exceeding its 2019 gross-add levels, he said.
The company continues to target 150,000 to 250,000 net active-customer additions, even if broader market conditions remain subdued. Singh said Chewy’s longer-term aspiration is high-single-digit to low-double-digit revenue growth, supported by customer additions and higher net sales per active customer, or NSPAC.
Health, clinics and customer spending Singh identified pharmacy, supplements, prescription diets, insurance, telemedicine and veterinary clinics as major components of the company’s health strategy. He said about one-quarter of Chewy’s customers currently buy from its pharmacy, while fewer than half of consumers know Chewy sells pet medications.
Each existing Chewy customer who becomes a pharmacy customer adds approximately $300 to $500 in NSPAC, Singh said. The company plans to focus marketing efforts on improving pharmacy awareness and expanding medication attachment among existing customers.
Chewy operates 60 veterinary clinics, which Singh said are performing better than the case the company outlined previously. A Chewy Vet Care clinic is expected to generate about $3.5 million in revenue, plus roughly $800,000 in additional sales on Chewy’s website, for approximately $4.3 million in combined revenue. Singh said the company is outperforming those metrics and reaching break-even in about 20 months.
He also said four out of 10 clinic customers are new to Chewy. The company acquired Modern Animal to immediately double its clinic base and gain additional capacity to expand. Singh described the acquisition as a fit based on culture, customer orientation and technology, adding that it provides the company with options for both asset-light and company-operated clinic models.
Chewy’s average veterinary recruiting time is about four months, Singh said. Its one-year veterinarian retention cohort is in the high-80% to low-90% range, he said. The company expects telemedicine products to improve affordability and access to veterinary care as regulations allow the category to develop further. Autoship, AI and capital allocation Autoship remains a key contributor to customer spending and retention. Singh said Autoship orders carry a mid-single-digit higher average order value than non-Autoship orders. Chewy has also doubled mobile-app penetration over the past three years, and Singh said app users tend to be more engaged, have higher Autoship participation and generate higher order values.
The company is testing efforts to use pet-profile data to expand Autoship beyond food and medications into additional merchandise categories. Singh said the product works in market tests, but its near-term contribution has been affected by broader pressure on discretionary attachment rates.
Chewy is also developing AI-driven tools internally, including “Cai,” or Chewy AI, to handle post-purchase service needs. Singh said the company is building additional agents to improve search, discovery and shopping, and eventually to use customer signals to manage relationships more individually through the app.
Singh said Chewy does not expect to enter a broad new investment cycle and does not need additional investment to maintain market-share gains if market conditions do not improve. Instead, he said the company intends to make durable, non-promotional investments in growth while using its base business, clinic margins and an expected $50 million in AI savings in 2027 to self-fund most initiatives.
After reinvestment, Chewy’s next capital-allocation priority is evaluating potential acquisitions, primarily in health, followed by returning capital to shareholders, Singh said. International expansion remains a lower priority, with the company focused on U.S. health services, digital products and clinics despite positive lessons from its Canadian launch.
About Chewy (NYSE:CHWY)Chewy, Inc is an e-commerce company focused on pet products and services. Through its website and mobile applications, the company sells pet food, treats, supplies, toys, bedding, medications, and other products for dogs, cats, fish, birds, reptiles, and small pets.
Chewy supports recurring purchases through its Autoship program and provides access to prescription and over-the-counter pet medications through Chewy Pharmacy. The company also offers pet health-related services, including veterinary consultations in certain markets, and sells products under a range of national and private-label brands.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
Should You Invest $1,000 in Chewy Right Now?Before you consider Chewy, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Chewy wasn't on the list.
While Chewy currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
MarketBeat just released its list of the 7 hottest IPOs expected to hit Wall Street in 2026. See which companies are preparing to go public and why investors are watching closely.
Get This Free Report
Continue following MarketBeat
Add MarketBeat as your preferred source on Google to see our latest stories in your feed.
Chewy v jedné seanci vzrostla o 6 %, ale od začátku roku je stále níže o 34 %. Firma zároveň po posledních výsledcích zvýšila celoroční výhled tržeb i ziskovosti.
Chewy stock surged 6% in a single session after a brutal year-to-date collapse, and bargain hunters are suddenly paying attention. The case for a turnaround and the case against it both have real teeth, and the next quarter will force…
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
Shares of Chewy (NYSE:CHWY | CHWY Price Prediction) are up 6% today to $21.75, a rare bright spot in a year that has otherwise punished the pet retailer. Chewy stock is still down 34% year to date (YTD), and one strong session doesn’t reverse that.
The rebound has revived the question of whether Chewy has finally found a floor. Chewy stock trading near its lows has attracted bargain hunters looking for a recovery trade, but the fundamentals behind the year’s slide haven’t fully turned, and the setup that produced the decline is still in place.
Chewy’s business is still growing, and Chewy’s guidance moved up rather than down after the latest report. The question is whether that growth widens margin or only lifts the top line, and today’s bid has to answer that. Chewy stock had already priced in a lot of skepticism before this bounce.
Earnings Frame the Year The September 9 report from Chewy is the cleanest explanation of the year. Sales at Chewy rose 7.3% year over year, meeting the consensus estimate, and Chewy raised its full-year revenue and profitability outlook. Active customers at Chewy grew 3.8% to 21.7 million, and Autoship reached 84.6% of net sales.
Gross margin at Chewy was unchanged at 30.4%, because cost of goods sold (COGS) rose at the same rate as sales. A retailer whose COGS climbs in step with revenue keeps margin flat as volume grows, and flat gross margin alongside a raised revenue forecast tells investors that the extra sales arrive at the same profitability as before.
The second reason for the selling was liquidity. Chewy ended the quarter with $611 million in cash, down from $860.1 million at fiscal year-end, after closing the $400 million Modern Animal acquisition and repurchasing shares. Chewy CEO Sumit Singh attributed the raised outlook to “the durability of our recurring revenue base, continued customer growth, and disciplined execution.”
Chewy’s full-year outlook now points to net sales of $13.46 billion to $13.57 billion, with the low end of adjusted EBITDA margin nudged up 10 basis points. Management at Chewy said the guidance does not assume a meaningful recovery in the pet consumer, so the upside depends on execution alone.
Pet Care Trails the Broad Market The broader pet-care corner has lagged all year, with Chewy leading the decline. The ProShares Pet Care ETF (CBOE:PAWZ) is down 10% year to date through the last settled close. For broad-market context, the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is up 12% year to date.
Chewy is down roughly three times as much as its own theme fund, so Chewy’s year is a company issue stacked on top of a sector problem. Management at Chewy said the company continues to outperform the broader pet category by two to three times, which suggests the operating trajectory and the share reaction have parted ways this year. That gap is what today’s rally begins to test for Chewy.
The peer group diverges from Chewy’s move. Petco (NASDAQ:WOOF) stock is down 12% year to date, closer to the sector than to Chewy stock’s slide. Freshpet (NASDAQ:FRPT) stock is up 6% year to date, marking the group’s outlier and a providing a reminder that not every pet name has struggled alongside Chewy.
What to Watch Next Chewy’s bull case rests on continued growth. Sales are still rising, the full-year outlook moved up rather than down, and Chewy stock trading at roughly two-thirds of where it began the year has priced in a fair amount of disappointment. Recurring Autoship revenue gives Chewy a predictable cash base even inside a soft pet market, and management said the outlook doesn’t require the consumer to bounce back.
Against that view, the bear case for Chewy is that gross margin sat flat while costs climbed with sales, which is what a retailer without pricing power looks like, and Chewy’s cash balance moved the wrong way in the same quarter. A stock that has fallen by a third over a year doesn’t establish a bottom in one session.
Whether Chewy has found a bottom turns on which side of that trade the next quarter settles. Investors can watch for whether margin expansion returns when Chewy reports Q3 2026 results, and they may want to size their positions with that binary in mind. One strong session only hints at demand for Chewy and falls short of proving a turn.
Contact [email protected] for any questions or corrections.
Chewy klesá o 6 % na 19,80 USD poté, co JPMorgan snížila doporučení na Neutral z Overweight a cílovou cenu na 24 USD. Firma čelí tlaku slabšího organického růstu navzdory silné exekuci.
Two analyst downgrades in back-to-back sessions have Chewy stock cratering while the broader market climbs, and the reasoning behind both cuts points to a force that Chewy's own strong execution simply cannot overcome.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
Shares of Chewy (NYSE:CHWY | CHWY Price Prediction) are down 6% to $19.80 in Friday morning trading after a second analyst downgrade in two sessions, with JPMorgan pulling the pet retailer off its buy-equivalent list. The move deepens a rough stretch for Chewy stock, which is now down 40% year to date (YTD). Wednesday’s earnings reaction kicked off the current leg lower, and Friday’s rating cut is extending the damage.
The selling is specific to Chewy stock. Broad-market benchmark the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is up 0.79% on the session, so the pressure on Chewy isn’t coming from a wider risk-off tone. That divergence matters, because both downgrade notes lean on macroeconomic pressure, yet the wider market is trading higher on the same session.
The peer group is moving in different directions on the same tape. Petco Health and Wellness (NASDAQ:WOOF) stock is down 0.6% to $2.42, and Freshpet (NASDAQ:FRPT) stock is up 2% to $66.41. The ProShares Pet Care ETF (CBOE:PAWZ) is a sector proxy that holds all three names, and the split reaction suggests that this is a single-name analyst call rather than a category rerating.
JPMorgan Downgrade Follows Evercore’s Cut Chewy’s slide follows JPMorgan analyst Doug Anmuth downgrading Chewy stock to Neutral from Overweight with a $24 price target, citing persistent macroeconomic pressure on organic growth. Anmuth framed the company as executing well on its own initiatives but with muted organic growth pushing him to the sidelines. The new target sits above where Chewy stock is trading Friday morning, but leaves only modest upside from here on his math.
The downgrade comes a day after Evercore ISI cut Chewy stock’s rating to In Line from Outperform with a $25 price target. Two firms have now moved Chewy off buy-equivalent ratings in consecutive sessions, and the reasoning in both notes lines up: execution is fine, and the category isn’t cooperating. That framing isolates the macro backdrop as the swing factor, with Chewy’s own execution left largely untouched by either firm’s critique.
The analyst still credited Chewy with continuing to gain share, outpacing the broader pet market by two to three times, and with healthy customer additions and retention. He also noted that Chewy’s second-quarter earnings before interest, taxes, depreciation and amortization (EBITDA) margin topped guidance, but that the beat was almost entirely driven by $15 million of timing-related and discrete gross-margin benefits, including a tariff refund, according to JPMorgan. Stripping out the one-time items turns a headline beat into a lower-quality result.
Sector Reaction Stays Contained The peer reaction backs up the read that this is a Chewy-specific event. Petco is drifting fractionally lower, and Freshpet is nudging higher on the same session that Chewy is slumping. If the downgrade were being read as a sector-wide warning on pet spend, Freshpet stock wouldn’t be catching a bid and Petco would likely be under more meaningful pressure.
Chewy reported second-quarter results Wednesday, and Chewy shares fell that session on a free cash flow shortfall that overshadowed a raised full-year outlook. Petco fell alongside Chewy that day, and Freshpet rose, so today’s split is a continuation of Wednesday’s dynamic rather than a fresh divergence. The JPMorgan and Evercore ISI notes are ratifying the market’s initial reaction two sessions later, rather than introducing a new fundamental concern.
What to Watch Next Chewy stock is trading below JPMorgan’s $24 target and below the $25 mark Evercore ISI set on Thursday. The question from here is whether Chewy stock can hold support in the high teens through the close, and whether any additional sell-side notes land before the weekend. A third downgrade would reshape the debate quickly.
Chewy CEO Sumit Singh is scheduled to appear at the upcoming Goldman Sachs consumer conference, and that appearance could shape the next leg of the narrative for Chewy. Investors can watch for whether Singh’s commentary on the pet-category backdrop matches the cautious framing in the two downgrade notes, or pushes back on it with fresh execution color.
The drop against a rising broad market frames today’s move as a single-name story rather than a sector call. The underlying reason (soft category growth) could still spill into peers if it persists, so anyone sizing their pet-retail exposure may want to keep both the company-specific execution and the category backdrop in view before adding to a Chewy share position here. That balance, between execution that’s working and a category that isn’t, is the setup heading into next week.
Contact [email protected] for any questions or corrections.
Chewy ve čtvrtletí zvýšila tržby o více než 7 % na 3,33 miliardy USD a upravený zisk na akcii vzrostl na 0,36 USD. Firma zároveň zvýšila celoroční výhled tržeb na 13,46 až 13,57 miliardy USD.
It's been a tough past year for Chewy (CHWY +1.59%). Its shares have been cut in half over the past year, and the stock plunged 11% after earnings came out on Sept. 9. While the company's results were in line with its earlier guidance, it was considered a low-quality beat due to tariff refunds, gift card breakage, vendor-funded merchandise activity, and a shift in rebates into the second quarter.
Let's take a closer look at the pet products e-commerce company's results and prospects to see if this latest dip is a buying opportunity.
Premium Feature
Moneyball Superscore
72/100
Today's Change
(
1.59
%) $
0.33
Current Price
$
21.08
Solid revenue growth, but cautious guidance While Chewy saw overall solid revenue growth, the company said it continues to see signs of a stressed consumer, as evidenced by fewer treat and other discretionary sales. It expects the pet industry to remain under pressure for the rest of the year, and plans to focus on more controllable factors such as retention and customer acquisition. Along these lines, it plans to launch a redesigned Chewy+ program that includes more health benefits and offers a better customer value proposition.
The company also continues to work to reduce costs and increase operation efficiency through the use of automation and AI. Its AI-powered assistant Kai is already answering approximately 30% of customer inquiries since its launch. Chewy also continues to expand its healthcare services, with Chewy Vet Care, Modern Animal, and SmartPak all performing well.
For the quarter, overall revenue climbed over 7% year over year to $3.33 billion. That was at the high end of the company's earlier forecast for sales of between $3.3 billion and $3.33 billion.
Despite industry headwinds, Chewy still has a very steady business, with the bulk of its sales coming from consumables, such as dog food and pet medication. Meanwhile, nearly 85% of its sales come from Autoship customers who have their orders scheduled to be delivered on a regular basis. Autoship customer sales jumped more than 9% year over year to $2.82 billion. Net sales per active customer (NSPAC) continued to increase, up nearly 2% year over year to $602, while active customers rose 4% year over year to 21.7 million.
Chewy has positioned itself as an operating leverage story, and that narrative was a bit messy this quarter, with the earlier referenced items attributing $15 million in benefits to the quarter. Gross margin remained steady at 30.4% year over year, although Chewy said that, excluding non-recurring items in both periods, it expanded, helped by growth in its sponsored ad business and disciplined promotional activity.
Selling, general, and administration (SG&A) costs climbed 5%, although the company saw 70 basis points of SG&A deleveraging. It credited productivity gains, better fulfillment center utilization, lower variable costs, and keeping headcount in check for the improvement. It called out lower variable costs as the biggest contributor, while highlighting gains from automation and AI tools. All this helped lead to a 90-basis-point increase in EBITDA margins to 6.8%, and Chewy said it saw nice expansion even when excluding the benefits it saw in the quarter.
Adjusted earnings per share (EPS), meanwhile, rose 9% year over year from $0.33 to $0.36, falling in line with guidance of $0.36. Adjusted EBITDA jumped nearly 7% year over year to $226.7 million.
Looking ahead, Chewy forecasts fiscal third-quarter revenue to grow by 6.6% to 7.7% (5.3% to 6.2% organically) to $3.32 billion to $3.36 billion. It expects gross margins to decline sequentially, which is typical seasonality.
For the full year, the company upped its revenue guidance from a range of between $13.4 billion and $13.55 billion to a new range of $13.46 billion to $13.57 billion. It bumped up its adjusted EBITDA margin guidance slightly to 6.7% to 6.8% from an earlier range of 6.6% to 6.8%.
Image source: The Motley Fool.
Time to buy the dip Despite a relatively messy quarter with some moving parts and cautious commentary, the company's overall quarter and guidance were solid. Investors have been acting like this is a business falling off a cliff, when in fact it remains highly recession-resilient with continued operating leverage opportunities.
From a valuation perspective, Chewy stock currently trades at a forward price-to-earnings (P/E) ratio of around 13.5 times this year's consensus and 11 times based on next-year analyst estimates. That's a bargain-basement price for this retailer with its large Autoship business. While pet owners may cut back on dog treats and toys, they aren't going to stop feeding and giving medicine to their pets. As such, I'd be a buyer of the stock here.
Chewy ve 2. čtvrtletí zvýšil tržby na 3,33 miliardy USD, meziročně o 7,3 %, a zároveň zvedl celoroční výhled tržeb i marže EBITDA. Firma dál získává podíl na trhu díky růstu aktivních zákazníků a Autoship.
Chewy’s Growth Engine Is Stronger Than the Market ThinksChewy NYSE: CHWY reported second-quarter fiscal 2026 net sales of $3.33 billion, up 7.3% from a year earlier and at the high end of its guidance range, as active customer growth, higher spending per customer and Autoship sales supported results amid continued pressure on pet-sector discretionary spending.
Chief Executive Officer Sumit Singh said the broader pet market did not experience a meaningful consumer recovery during the quarter, though conditions also did not worsen from the trends seen at the end of the first quarter. He said Chewy continued to outperform the broader pet category by roughly two to three times and gain market share.
Get Chewy alerts:
From CrowdStrike to Chewy, These Tanking Stocks Are Announcing BuybacksExcluding contributions from acquired businesses SmartPak and Modern Animal, organic net sales rose 5.7% year over year. The company ended the quarter with 21.7 million active customers, an increase of 3.8%, while net sales per active customer reached $602.
Autoship customer sales climbed 9.3% to $2.8 billion and represented 84.6% of total net sales. Singh said the recurring-sales model remains a key source of revenue durability, while Chewy continued to add customers, improve retention, reactivate lapsed customers and expand engagement across its ecosystem.
Consumer Spending Remains Selective Chewy Gobbles up Market Share in 2026: Poised to Advance in Q2Chewy said pressure on discretionary purchases and premiumization continued during the quarter, affecting both Consumables and Hardgoods. Singh said consumers remained focused on core food, medications and health-oriented products, while treats and toppers were more exposed to discretionary spending pressures.
Chief Financial Officer Chris Deppe said treats sales growth slowed more sharply than sales of core food. Still, he said industry data indicated that the broader Consumables market was roughly flat year over year, while Chewy delivered mid-single-digit growth in the category. Hardgoods sales increased in the mid-teens, supported by assortment and merchandising improvements, according to the company.
Singh said pet-industry conditions reflected both consumer pressures and softness in dog adoption and household formation. He added that Chewy does not expect pricing to provide a material benefit to sales growth this year, though the company also does not anticipate broad category deflation or irrational promotional activity.
Profitability Exceeds Expectations, With Timing Benefits Adjusted EBITDA totaled $227 million, representing a 6.8% margin and exceeding Chewy’s prior guidance of 6.3% to 6.4%. Adjusted net income was $149 million, or $0.36 per diluted share.
Deppe said essentially all of the outperformance relative to the company’s margin expectations came from timing-related and discrete benefits. About $10 million of the benefit came primarily from tariff refunds received earlier than anticipated and rebates that shifted from the second half into the second quarter. The quarter also included more than $5 million of benefits from gift-card breakage, inventory adjustments and vendor-funded merchandising activity.
Gross margin was 30.4%, flat year over year and up 30 basis points from the first quarter. Deppe said the company expects gross margin to decline modestly sequentially in the third quarter, in line with seasonal patterns, although it expects gross margin to expand for the full year at a more moderate pace than in fiscal 2025.
Non-GAAP selling, general and administrative expense was 18.4% of sales, compared with 19.1% a year earlier. The company cited improved fulfillment-center utilization, lower variable costs to serve, headcount discipline, automation and AI-enabled productivity as drivers of 70 basis points of year-over-year SG&A leverage.
Health, Acquisitions and AI Remain Strategic Priorities Chewy said its health businesses continued to expand. The Chewy Vet Care clinic portfolio delivered triple-digit revenue growth, while the company said Modern Animal performed ahead of its expectations following its acquisition. Chewy completed the $400 million Modern Animal acquisition during the quarter.
Singh said Modern Animal and Chewy Vet Care offer complementary capabilities, unit economics and telehealth offerings. SmartPak, Chewy’s equine, farm and exotics business, also performed ahead of expectations. The business recorded its seventh consecutive quarter of mid-double-digit year-over-year sales growth, according to Singh.
The company also highlighted progress in deploying artificial intelligence across customer service, pharmacy and veterinary operations. Chewy launched its AI-powered customer assistant, Kai, to a select group of mobile-app users. Singh said about 30% of chats were resolved through self-service for common requests involving orders, returns, Autoship and account management.
Chewy also began using AI tools for customer-care agents and pharmacy workflows, while its Callie voice capability is supporting appointment confirmations, scheduling and follow-ups at select Chewy Vet Care locations. The company expects AI initiatives to generate low tens of millions of dollars in cost savings during fiscal 2026 and about $50 million on an annualized basis in fiscal 2027.
Singh cautioned that AI savings should not be viewed as a standalone amount that will flow directly to the bottom line, as the company expects the efficiencies to offset ordinary cost pressures and potentially fund growth investments.
Guidance Raised and Narrowed Chewy raised and narrowed its fiscal 2026 outlook, citing more stable consumer trends, continued market-share gains and better-than-expected contributions from SmartPak and Modern Animal. The company now expects full-year net sales of $13.46 billion to $13.57 billion, representing growth of 6.8% to 7.7%.
Organic net sales are expected to grow 5.5% to 6.3% for the year. The company said the midpoint of the forecast does not assume a meaningful improvement in consumer conditions.
Full-year adjusted EBITDA margin is expected to be 6.7% to 6.8%, compared with prior guidance of 6.6% to 6.8%. At the midpoint, the outlook implies adjusted EBITDA of $912 million and more than 100 basis points of year-over-year margin expansion. Third-quarter net sales are projected at $3.323 billion to $3.358 billion, with adjusted EBITDA margin of 6.6% to 6.7% and adjusted diluted earnings per share of about $0.39. Chewy generated $90 million in free cash flow during the quarter and ended the period with $612 million in cash equivalents and marketable securities, as well as more than $1 billion in total available liquidity. The company issued $600 million in term loans and repurchased $200 million of stock, buying back 9.9 million shares during the quarter.
About Chewy (NYSE:CHWY)Chewy, Inc NYSE: CHWY is a leading e-commerce retailer specializing in pet food, supplies and services. The company offers a comprehensive assortment of products for dogs, cats, fish, birds and other small animals, including prescription medications, veterinary health products, grooming essentials and toys. Through its online platform and mobile app, Chewy provides an intuitive shopping experience with features such as Autoship, ensuring regular deliveries of pet essentials at schedule intervals.
Founded in 2011 by Ryan Cohen and Michael Day, Chewy initially operated under the name Mr.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
Should You Invest $1,000 in Chewy Right Now?Before you consider Chewy, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Chewy wasn't on the list.
While Chewy currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
Nuclear energy is entering a new growth cycle as rising power demand, expanding data centers, and renewed policy support bring the sector back into focus. After strong gains in recent years, the most impactful phase of nuclear investment may still be ahead. This report highlights seven nuclear energy stocks positioned across the value chain—combining near-term revenue with long-term upside as next-generation technologies scale. Click the link below to unlock the full list.
Get This Free Report
Continue following MarketBeat
Add MarketBeat as your preferred source on Google to see our latest stories in your feed.
Chewy ve 2. čtvrtletí překonal odhady tržeb i zisku na akcii, ale akcie klesly o 8,6 % po zklamání ve volném peněžním toku. Ten spadl na 89,5 milionu USD, pod očekávaných 133 milionů USD.
Chewy Inc (NYSE:CHWY) reported second-quarter revenue and profit above Wall Street estimates on Thursday, even as shares fell 8.6% after the pet products retailer's free cash flow missed expectations.
Revenue rose 7.3% year-over-year to $3.33 billion, edging past the $3.32 billion analysts had forecast. Adjusted earnings per share came in at $0.36, up 9.1% from a year earlier.
Adjusted EBITDA climbed 23.7% to $226.7 million, topping estimates of $211 million, while adjusted EBITDA margin expanded 90 basis points to 6.8%, also ahead of forecasts.
Gross margin held steady at 30.4% year-over-year, and net margin improved 40 basis points to 2.4%. Free cash flow fell 15.5% to $89.5 million, well short of the $133 million analysts had expected.
Active customers grew 3.8% to 21.705 million.
Analysts at Jefferies said the company's base business, excluding acquisitions, is holding up, which they said should be viewed favorably given softer macroeconomic commentary in the prior quarter. However, they noted that one-time items and timing factors contributed to the profit beat, and that guidance pointing to stable core growth alongside heavy reinvestment means the results are not as strong as headline numbers suggest.
The analysts said Chewy's capital deployment toward expanding its addressable market in veterinary and equestrian categories is a sensible move, and that its artificial intelligence and membership initiatives show promise, though the timing of when those investments will generate higher returns remains uncertain.
Chewy zveřejní hospodářské výsledky za 2. čtvrtletí ve středu před otevřením trhu; analytici čekají EPS 36 centů a výnosy 3,32 miliardy USD. Akcie v pátek klesly o 1,3 % na 23,66 USD.
Chewy, Inc. (NYSE:CHWY) will release its second earnings report before the opening bell on Wednesday, Sept. 9.
Analysts expect the Plantation, Florida-based company to report quarterly earnings of 36 cents per share, up from 33 cents per share in the year-ago period. The consensus estimate for CHWY’s quarterly revenue is $3.32 billion. It reported $3.1 billion last year, according to Benzinga Pro.
On June 10, Chewy reported better-than-expected first-quarter results, but the online pet retailer lowered its fiscal 2026 sales outlook.
Chewy shares fell 1.3% to close at $23.66 on Friday.
Benzinga readers can access the latest analyst ratings on the Analyst Stock Ratings page. Readers can sort by stock ticker, company name, analyst firm, rating change or other variables.
Let’s have a look at how Benzinga’s most-accurate analysts have rated the company in the recent period.
RBC Capital analyst Steven Shemesh maintained an Outperform rating with a price target of $34 on Aug. 26, 2026. This analyst has an accuracy rate of 59%. Rosenblatt analyst Scott Devitt initiated coverage on the stock with a Neutral rating and a price target of $25 on Aug. 20, 2026. This analyst has an accuracy rate of 80%. UBS analyst Michael Lasser maintained a Neutral rating and cut the price target from $32 to $24 on June 11, 2026. This analyst has an accuracy rate of 78%. JP Morgan analyst Doug Anmuth maintained an Overweight rating and slashed the price target from $35 to $29 on June 11, 2026. This analyst has an accuracy rate of 84%. Citizens analyst Andrew Boone maintained a Market Outperform rating and cut the price target from $45 to $28 on June 11, 2026. This analyst has an accuracy rate of 72%. Trending
Considering buying CHWY stock? Here’s what analysts think:
Photo via Shutterstock
Market News and Data brought to you by Benzinga APIs
Chewy uzavřela na 23,80 USD, což představuje denní růst o 2,32 % a lepší výkon než širší trh. Investoři sledují výsledky hospodaření, které má firma oznámit 9. září 2026.
In the latest trading session, Chewy (CHWY - Free Report) closed at $23.80, marking a +2.32% move from the previous day. The stock's change was more than the S&P 500's daily loss of 0.33%. On the other hand, the Dow registered a loss of 0.7%, and the technology-centric Nasdaq decreased by 0.12%.
Coming into today, shares of the online pet store had gained 2.92% in the past month. In that same time, the Retail-Wholesale sector gained 2.78%, while the S&P 500 gained 3.87%.
The upcoming earnings release of Chewy will be of great interest to investors. The company's earnings report is expected on September 9, 2026. The company is expected to report EPS of $0.36, up 9.09% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $3.32 billion, indicating a 6.83% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $1.53 per share and revenue of $13.49 billion, which would represent changes of +20.47% and +7.06%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Chewy. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 0.31% lower within the past month. Chewy is currently sporting a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that Chewy has a Forward P/E ratio of 15.25 right now. This signifies a discount in comparison to the average Forward P/E of 17.22 for its industry.
It's also important to note that CHWY currently trades at a PEG ratio of 0.62. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Internet - Commerce industry was having an average PEG ratio of 1.24.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 101, which puts it in the top 42% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Chewy uzavřela o 3,99 % níže na 22,59 USD, tedy hůře než S&P 500. Před zveřejněním výsledků analytici očekávají zisk 0,36 USD na akcii a tržby 3,32 miliardy USD.
In the latest trading session, Chewy (CHWY - Free Report) closed at $22.59, marking a -3.99% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 0.06% for the day. Elsewhere, the Dow saw a downswing of 0.11%, while the tech-heavy Nasdaq depreciated by 0.32%.
Coming into today, shares of the online pet store had gained 12.69% in the past month. In that same time, the Retail-Wholesale sector gained 7.55%, while the S&P 500 gained 3.42%.
The investment community will be paying close attention to the earnings performance of Chewy in its upcoming release. In that report, analysts expect Chewy to post earnings of $0.36 per share. This would mark year-over-year growth of 9.09%. Meanwhile, our latest consensus estimate is calling for revenue of $3.32 billion, up 6.83% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.53 per share and revenue of $13.49 billion, indicating changes of +20.47% and +7.2%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Chewy. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Chewy presently features a Zacks Rank of #4 (Sell).
Digging into valuation, Chewy currently has a Forward P/E ratio of 15.4. For comparison, its industry has an average Forward P/E of 18.55, which means Chewy is trading at a discount to the group.
It's also important to note that CHWY currently trades at a PEG ratio of 0.62. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Internet - Commerce industry held an average PEG ratio of 1.18.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 163, finds itself in the bottom 34% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Chewy uzavřela na 22,82 USD, což znamená denní pokles o 2,06 % i přes růst širšího trhu. Investoři sledují nadcházející výsledky, kde se čeká EPS 0,36 USD a výnosy 3,32 miliardy USD.
In the latest trading session, Chewy (CHWY - Free Report) closed at $22.82, marking a -2.06% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 1.66%. At the same time, the Dow added 1.19%, and the tech-heavy Nasdaq gained 2.78%.
Coming into today, shares of the online pet store had gained 13.11% in the past month. In that same time, the Retail-Wholesale sector gained 0.61%, while the S&P 500 lost 1.49%.
The upcoming earnings release of Chewy will be of great interest to investors. The company is predicted to post an EPS of $0.36, indicating a 9.09% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $3.32 billion, indicating a 6.83% upward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.53 per share and a revenue of $13.49 billion, representing changes of +20.47% and +7.06%, respectively, from the prior year.
Any recent changes to analyst estimates for Chewy should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Right now, Chewy possesses a Zacks Rank of #5 (Strong Sell).
Valuation is also important, so investors should note that Chewy has a Forward P/E ratio of 15.25 right now. This signifies a discount in comparison to the average Forward P/E of 16.71 for its industry.
It's also important to note that CHWY currently trades at a PEG ratio of 0.62. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Internet - Commerce industry stood at 1.27 at the close of the market yesterday.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 181, putting it in the bottom 27% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
Chewy vidí péči o zvířata jako klíčový dlouhodobý růstový motor a po akvizici Modern Animal čeká zhruba 60 klinik do konce fiskálního roku 2026. Síť Vet Care má přitahovat nové zákazníky a zvyšovat útraty stávajících.
Key Takeaways Chewy sees pet healthcare as a major growth opportunity, supported by its Vet Care clinic network.CHWY's Vet Care clinics attract new customers and increase spending from existing customers.CHWY expects Modern Animal to accelerate clinic expansion to about 60 locations by fiscal 2026. Chewy, Inc. (CHWY - Free Report) believes pet healthcare remains one of its largest long-term growth opportunities, supported by an estimated total addressable market of around $54 billion. Chewy Vet Care clinics continue to generate strong stand-alone economics while serving as effective customer acquisition and retention channels for the broader ecosystem. The shortage of veterinarians also provides Chewy with a structural advantage as it expands its veterinary clinic network.
To support this strategy, the company completed the acquisition of Modern Animal. Management noted that Modern Animal adds a complementary clinic footprint, strong clinical expertise and a technology-enabled operating model aligned with Chewy Vet Care. The acquisition is expected to accelerate clinic expansion by combining Chewy Vet Care’s organic growth with Modern Animal’s existing footprint and development pipeline, with the combined business projected to operate approximately 60 clinics by the end of fiscal 2026 and generate an embedded steady-state revenue contribution of about $290 million.
The company noted that Chewy Vet Care continues to strengthen the broader Chewy ecosystem by attracting new customers to the platform while encouraging existing customers to increase their spending following their initial clinic visit. This demonstrates the strategic value of its integrated pet healthcare offering by supporting customer acquisition, retention and a greater share of wallet, while reinforcing the company's long-term growth strategy.
Additionally, technology-enabled workflows and AI-assisted tools are driving strong veterinary productivity, retention and employee satisfaction. Combined with Chewy’s recurring revenue model, scaled fulfillment network and expanding healthcare platform, these capabilities support its long-term 10% adjusted EBITDA margin target. Overall, Chewy's expanding healthcare ecosystem strengthens its competitive moat by enhancing customer acquisition, retention and share of wallet while supporting long-term profitability.
Zacks Rundown for CHWYCHWY shares have lost 25.3% in the past three months compared with the industry’s 2.6% decline. The company carries a Zacks Rank #5 (Strong Sell) at present.
Image Source: Zacks Investment Research
From a valuation standpoint, CHWY trades at a forward price-to-earnings ratio of 21.74, lower than the industry’s average of 21.84.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for earnings for the current and next fiscal year indicates year-over-year growth of 20.5% and 21.7%, respectively.
Image Source: Zacks Investment Research
Stocks to ConsiderSome better-ranked stocks have been discussed below:
Phibro Animal Health Corporation (PAHC - Free Report) operates as an animal health and mineral nutrition company in the United States, Latin America and Canada, Europe, the Middle East, Africa, and the Asia Pacific. PAHC currently carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for PAHC's current fiscal-year sales and earnings implies growth of 14.8% and 47.4%, respectively, from the year-ago actuals. PAHC delivered a trailing four-quarter earnings surprise of 16.3%, on average.
Carvana Co. (CVNA - Free Report) , currently carrying a Zacks Rank #2, operates an e-commerce platform for buying and selling used cars.
The Zacks Consensus Estimate for CVNA’s current financial-year sales implies growth of 38.5%, and the same for earnings implies a decline of 6.5% from the year-ago reported numbers. CVNA delivered a negative trailing four-quarter earnings surprise of 71.6%, on average.
Amazon.com Inc. (AMZN - Free Report) engages in the retail sale of consumer products, advertising, and subscription services through online and physical stores in North America and internationally. At present, Amazon carries a Zacks Rank of 2.
The consensus estimate for Amazon’s current fiscal-year sales and earnings implies growth of 15.2% and 29.6%, respectively, from the year-ago figures. AMZN delivered a trailing four-quarter earnings surprise of 11.4%, on average.
Chewy uvádí, že růst opakovaných tržeb táhne vyšší počet aktivních zákazníků i vyšší útrata na zákazníka. Kliniky Chewy Vet Care přivádějí nové klienty a posilují loajalitu v ekosystému Autoship.
Key Takeaways Chewy's recurring revenues are supported by customer growth and higher spending per active customer.CHWY's Vet Care clinics attract new customers and help increase spending from existing customers.CHWY's Autoship ecosystem and value proposition continue to support loyalty and market share gains. Chewy, Inc. (CHWY - Free Report) highlighted the continued strength of its recurring revenue base, supported by a balanced contribution from both active customer growth and the Net Sales Per Active Customer (NSPAC) expansion. Management believes that the pet category remains resilient, supported by recurring non-discretionary spending and strong emotional attachment between pet owners and their pets. Despite a more challenging operating environment, the company continues to gain market share steadily within the category.
The company views Chewy Health and Chewy Vet Care to be among its most significant long-term growth opportunities. Chewy Vet Care clinics continue to deliver strong stand-alone economics while supporting customer acquisition and retention across the broader Chewy ecosystem. Around 40% of clinic customers are new to Chewy and generate approximately $900 in first-year NSPAC. In addition, existing Chewy customers who visit Chewy Vet Care increase their share of wallet at a meaningfully faster rate after their initial clinic visit.
Chewy’s value proposition continues to differentiate it through industry-leading convenience, competitive pricing, trusted service, a broad product assortment and its recurring Autoship ecosystem. Management noted that these strengths become even more relevant during periods when consumers prioritize value, reliability and trusted relationships. The company believes this combination reinforces customer loyalty, supports sustained demand and strengthens its competitive positioning within the pet category.
Overall, Chewy’s integrated ecosystem continues to strengthen its competitive position by deepening customer relationships and increasing customer lifetime value. Consistent execution of this strategy should support durable market share gains and sustainable long-term profitable growth.
Zacks Rundown for CHWYCHWY shares have lost 32.3% in the past six months compared with the industry’s 7.6% decline. The company carries a Zacks Rank #5 (Strong Sell) at present.
Image Source: Zacks Investment Research
From a valuation standpoint, CHWY trades at a forward price-to-earnings ratio of 22.77, higher than the industry’s average of 21.38.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for earnings for the current and next fiscal year indicates year-over-year growth of 20.5% and 21.7%, respectively.
Image Source: Zacks Investment Research
Stocks to ConsiderSome better-ranked stocks have been discussed below:
Central Garden & Pet Company (CENT - Free Report) produces and distributes various products for the lawn and garden, and pet supplies markets in the United States. It currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CENT’s current financial-year sales implies a decline of 5.7%, and the same for earnings implies growth of 5.9% from the year-ago reported numbers. CENT delivered a trailing four-quarter earnings surprise of 45.4%, on average.
Phibro Animal Health Corporation (PAHC - Free Report) operates as an animal health and mineral nutrition company in the United States, Latin America and Canada, Europe, the Middle East, Africa, and the Asia Pacific. PAHC presently carries a Zacks Rank of 2 (Buy).
The Zacks Consensus Estimate for PAHC's current fiscal-year sales and earnings implies growth of 14.8% and 47.4%, respectively, from the year-ago actuals. PAHC delivered a trailing four-quarter earnings surprise of 16.3%, on average.
Trupanion, Inc. (TRUP - Free Report) together with its subsidiaries, provides medical insurance for cats and dogs on a subscription basis in the United States, Canada, Continental Europe, and Australia. It currently holds a Zacks Rank #2.
The Zacks Consensus Estimate for TRUP’s current financial-year sales and earnings indicates 9.4% and 20% growth from the last year, respectively. TRUP reported a trailing four-quarter average earnings surprise of 250%.
Chewy rozšiřuje AI a automatizaci napříč zákaznickou podporou, lékárenskou činností i logistikou a čeká z nich v roce 2026 úspory v nižších desítkách milionů dolarů. V 1. čtvrtletí už díky nim vykázala zhruba 90 bazických bodů meziroční páky v SG&A.
Key Takeaways Chewy is scaling AI across customer service, pharmacy, fulfillment and marketing workflows.CHWY expects AI initiatives to deliver efficiency gains in the low tens of millions of dollars in fiscal 2026.Chewy reported 90 basis points of year-over-year SG&A leverage, aided by productivity and early AI benefits. Chewy, Inc. (CHWY - Free Report) is expanding the use of artificial intelligence ("AI") and automation across its business to enhance customer service and improve operational efficiency. During the first quarter of fiscal 2026, the company built the infrastructure required to deploy AI at scale and began integrating these capabilities across multiple functions to support its long-term growth strategy.
Chewy is applying AI and automation across customer service, pharmacy operations, fulfillment and marketing workflows. Management noted that these initiatives are helping lower the cost of serving customers by improving workflow speed, service quality and productivity. The company is utilizing AI to enhance search relevance, personalization and marketing effectiveness.
Chewy expects AI-driven initiatives to generate efficiency benefits in the low tens of millions of dollars during fiscal 2026, with a more meaningful contribution anticipated in 2027 and beyond. In the first quarter, the company delivered roughly 90 basis points of year-over-year SG&A leverage, supported by fulfillment productivity gains, operating discipline and early benefits from technology, automation and AI-enabled initiatives.
At the same time, Chewy continues to invest in strategic growth initiatives, including expanding Chewy Health, scaling Chewy Vet Care, optimizing its fulfillment network and strengthening customer acquisition capabilities. Management emphasized that investments in AI infrastructure and automation are designed not only to improve near-term productivity but also to reinforce the company's long-term competitive positioning.
Looking ahead, management believes continued investments across health, AI, automation, fulfillment and customer experience will strengthen the Chewy ecosystem. The company reiterated the long-term adjusted EBITDA margin target of 10%, reflecting confidence in the operating model as it balances innovation, automation and disciplined execution.
CHWY’s Price Performance, Valuation & EstimatesChewy, which competes with BARK, Inc. (BARK - Free Report) and Petco Health and Wellness Company, Inc. (WOOF - Free Report) , has fallen 28% over the past three months against the industry’s growth of 5.5%. Meanwhile, BARK's shares have declined 5.4% and Petco has dipped 1%.
Image Source: Zacks Investment Research
From a valuation standpoint, CHWY trades at a trailing price-to-sales ratio of 0.63X, below the industry’s average of 2.10X. It has a Value Score of A. CHWY is trading at a premium to BARK (with a trailing 12-month P/S ratio of 0.21) and Petco (0.13).
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CHWY’s fiscal 2026 and 2027 earnings implies year-over-year growth of 20.5% and 21.9%, respectively. Estimates for fiscal 2026 and 2027 have been revised downward by 9 cents and 13 cents, respectively, over the past 30 days.
Image Source: Zacks Investment Research
Although the company continues to invest in AI, healthcare and fulfillment capabilities to support long-term growth, short-term challenges remain. Management expects margin expansion to moderate amid difficult comparisons, higher transportation-related costs and continued strategic investments. A softer consumer spending environment and a more cautious outlook for discretionary categories could limit revenue growth and operating leverage in the near term. CHWY currently carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Chewy kupuje Modern Animal, aby posílil veterinární péči a do fiskálního roku 2026 míří na 60 klinik. Modern Animal má v roce 2026 přinést 70 milionů USD tržeb.
Key Takeaways CHWY acquired Modern Animal to expand its veterinary care platform and healthcare ecosystem.CHWY expects roughly 60 clinics by FY26 through combined expansion plans.Modern Animal is projected to contribute $70M to FY26 revenues for CHWY. Chewy, Inc. (CHWY - Free Report) is accelerating its push into pet healthcare through the acquisition of Modern Animal, a technology-enabled veterinary care provider. The deal strengthens Chewy’s presence in the highly attractive and underpenetrated pet healthcare market while supporting its broader strategy of building a comprehensive ecosystem that spans products, pharmacy and veterinary services. Management believes that the company is well-positioned to capitalize on this opportunity as demand for pet healthcare continues to grow.
A key advantage for Chewy is its growing access to veterinary talent in an industry facing a shortage of veterinarians. Management noted that this creates a structural advantage as the company expands its Chewy Vet Care network. Modern Animal adds a highly complementary platform with strong clinical expertise, above-industry unit economics and an experience-led, technology-enabled model that aligns closely with Chewy’s veterinary strategy.
The acquisition is expected to accelerate clinic expansion by combining Chewy Vet Care’s organic growth initiatives with Modern Animal’s existing footprint and development pipeline. Together, the businesses are expected to operate 60 clinics by the end of fiscal 2026, with embedded revenue contribution approaching $290 million at steady state.
Chewy has also incorporated the acquisition into its fiscal 2026 outlook. The company expects net sales of $13.40-$13.55 billion, indicating year-over-year growth of 6.3-7.5%. The guidance includes an estimated $70-million revenue contribution from Modern Animal during fiscal 2026.
While Modern Animal’s clinics generate attractive mature four-wall profitability, management expects the business to create a modest margin-rate drag during 2026 as integration efforts progress. Even so, Chewy maintained confidence in its earnings model and plans to open 10-12 Chewy Vet Care locations this year while integrating Modern Animal into its operating and technology platforms.
CHWY’s Price Performance, Valuation & EstimatesChewy, which competes with BARK, Inc. (BARK - Free Report) and Petco Health and Wellness Company, Inc. (WOOF - Free Report) , has fallen 22.8% in the past three months against the industry’s growth of 10%. Meanwhile, BARK shares have declined 20.4% and Petco has dipped 9.3%.
Image Source: Zacks Investment Research
From a valuation standpoint, CHWY trades at a trailing price-to-sales ratio of 0.59X, below the industry’s average of 2.20X. It has a Value Score of A. CHWY is trading at a premium to BARK (with a trailing 12-month P/S ratio of 0.22) and Petco (0.12).
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CHWY’s fiscal 2026 and 2027 earnings implies year-over-year growth of 20.5% and 22.2%, respectively. Estimates for fiscal 2026 and 2027 have been revised downward by 10 cents and 13 cents, respectively, in the past 30 days.
