Chewy (NYSE:CHWY) Releases Quarterly Earnings Results

Chewy (NYSE:CHWY) released its quarterly earnings data on Wednesday. The company reported $0.36 earnings per share for the quarter, beating the consensus estimate of $0.18 by $0.18, FiscalAI reports. Chewy had a return on equity of 60.88% and a net margin of 2.09%.The business had revenue of $3.33 billion for the quarter, compared to analysts’ expectations of $3.32 billion. During the same quarter in the previous year, the business posted $0.33 EPS. Chewy’s revenue for the quarter was up 7.3% on a year-over-year basis.

Here are the key takeaways from Chewy’s conference call:

• Q2 net sales rose 7.3% to $3.33 billion, at the high end of guidance, while active customers increased 3.8% to 21.7 million. Autoship sales grew 9.3% and represented 84.6% of total sales, reinforcing the recurring nature of revenue.
• Chewy raised and narrowed its fiscal 2026 outlook, now forecasting $13.46 billion-$13.57 billion in sales and adjusted EBITDA margins of 6.7%-6.8%. SmartPak and Modern Animal are performing ahead of initial expectations, although the company still assumes no meaningful consumer recovery.
• Profitability benefited from structural cost efficiencies, higher-margin Health and Sponsored Ads growth, automation, and AI. Management expects AI initiatives to produce low tens of millions of dollars in savings in fiscal 2026 and approximately $50 million on an annualized basis in fiscal 2027.
• Chewy Health continues to expand, with Chewy Vet Care delivering triple-digit revenue growth and Modern Animal integrating ahead of expectations. The company also plans to reinvest in customer acquisition, brand marketing, Chewy+, and new products while maintaining its long-term margin objectives.
• Consumer conditions remain pressured, particularly for discretionary treats, premium products, and the dog category, with no pricing benefit expected in 2026. Q2 EBITDA outperformance relied heavily on timing and discrete benefits, including tariff refunds and rebates, which are not expected to recur.

Chewy Trading Up 1.8%

Shares of NYSE:CHWY opened at $21.11 on Friday. Chewy has a 52-week low of $17.40 and a 52-week high of $40.55. The company has a debt-to-equity ratio of 1.59, a quick ratio of 0.35 and a current ratio of 0.84. The company has a market capitalization of $8.64 billion, a P/E ratio of 31.99, a price-to-earnings-growth ratio of 0.83 and a beta of 1.42. The company has a 50-day simple moving average of $22.44 and a 200 day simple moving average of $23.09.

Analyst Ratings Changes

Several brokerages have recently weighed in on CHWY. Zacks Research raised shares of Chewy from a “strong sell” rating to a “hold” rating in a research note on Tuesday, August 11th. JPMorgan Chase & Co. cut their price objective on shares of Chewy from $35.00 to $29.00 and set an “overweight” rating on the stock in a research report on Thursday, June 11th. Moffett Nathanson set a $28.00 target price on shares of Chewy in a report on Thursday, June 11th. Rosenblatt Securities decreased their target price on shares of Chewy from $25.00 to $24.00 and set a “neutral” rating for the company in a research report on Thursday. Finally, Wolfe Research reiterated an “outperform” rating and issued a $27.00 price target on shares of Chewy in a research note on Thursday, June 11th. One analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating and seven have assigned a Hold rating to the company. According to MarketBeat.com, Chewy has a consensus rating of “Moderate Buy” and an average target price of $31.05.

Chewy News Summary

Here are the key news stories impacting Chewy this week:

• Positive Sentiment: Chewy reported revenue of $3.33 billion, up 7.3% year over year and slightly above estimates, while adjusted EPS of $0.36 was in line with or above consensus depending on the measure used. Active customers increased 3.8% to 21.7 million, and Autoship sales reached $2.82 billion, or 84.6% of revenue. Chewy Q2 Revenue Rises 7.3% to $3.33 Billion
• Positive Sentiment: Management raised its fiscal 2026 revenue outlook to $13.5 billion-$13.6 billion and increased its profitability outlook. Stable demand for essential pet products, market-share gains, Autoship growth and AI-related cost savings support the improved forecast. Chewy Q2 Earnings Call Highlights Stable Demand and Higher Outlook
• Positive Sentiment: Some analysts remain constructive: Citizens JMP reaffirmed an outperform rating with a $28 target, while TD Cowen and Bank of America maintained Buy ratings despite trimming their targets. Analysts also cited Chewy’s potential expansion into higher-margin services, including veterinary care. Chewy Buy Rating Reaffirmed
• Neutral Sentiment: The quarter was broadly solid but not a major upside surprise: gross margin was flat at 30.4%, and analysts described the near-term catalyst path as limited because pet-category growth remains modest.
• Negative Sentiment: Free cash flow missed expectations, while acquisition-related spending and lower liquidity raised balance-sheet concerns. Investors also questioned whether reported profit benefited from temporary factors rather than durable operating improvement. Chewy Free Cash Flow Miss Overshadows Raised Outlook
• Negative Sentiment: Consumers are reducing discretionary purchases such as pet treats, and Evercore ISI downgraded the stock, citing slowing organic growth and few catalysts. Rosenblatt also cut its target to $24 and adopted a Neutral rating. Analyst Downgrade on Limited Catalysts

Insider Transactions at Chewy

In other Chewy news, General Counsel Da-Wai Hu sold 4,203 shares of the company’s stock in a transaction that occurred on Monday, June 29th. The stock was sold at an average price of $19.49, for a total value of $81,916.47. Following the sale, the general counsel owned 4,103 shares in the company, valued at $79,967.47. This represents a 50.60% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. 0.34% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the business. Wellington Management Group LLP boosted its position in Chewy by 295.9% during the third quarter. Wellington Management Group LLP now owns 17,622,768 shares of the company’s stock worth $712,841,000 after purchasing an additional 13,171,325 shares during the period. Viking Global Investors LP grew its stake in Chewy by 146.9% in the 4th quarter. Viking Global Investors LP now owns 13,536,645 shares of the company’s stock valued at $447,386,000 after buying an additional 8,052,955 shares during the last quarter. AQR Capital Management LLC grew its stake in Chewy by 10.0% in the 4th quarter. AQR Capital Management LLC now owns 11,218,840 shares of the company’s stock valued at $370,558,000 after buying an additional 1,022,694 shares during the last quarter. Morgan Stanley raised its holdings in Chewy by 33.8% in the 4th quarter. Morgan Stanley now owns 7,660,258 shares of the company’s stock valued at $253,172,000 after acquiring an additional 1,937,014 shares during the period. Finally, State Street Corp raised its holdings in Chewy by 3.0% in the 4th quarter. State Street Corp now owns 6,655,547 shares of the company’s stock valued at $219,966,000 after acquiring an additional 193,947 shares during the period. 93.09% of the stock is currently owned by institutional investors.

Chewy Company Profile

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.