Chewy (NYSE:CHWY) Posts Quarterly Earnings Results, Beats Estimates By $0.19 EPS

Chewy (NYSE:CHWY) released its earnings results on Wednesday. The company reported $0.43 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.24 by $0.19, FiscalAI reports. Chewy had a net margin of 1.99% and a return on equity of 60.02%. The firm had revenue of $3.36 billion during the quarter, compared to analyst estimates of $3.35 billion. During the same period last year, the business earned $0.35 earnings per share. The business’s revenue was up 9.7% on a year-over-year basis. Chewy updated its Q2 2026 guidance to 0.360-0.360 EPS.

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

• Chewy reported Q1 net sales of $3.36 billion, up 7.7% year over year, with active customers rising to 21.5 million and Autoship sales growing more than 10% and accounting for 84.4% of total revenue.
• Profitability expanded meaningfully, as adjusted EBITDA margin reached 7.5% in Q1, up about 130 basis points, while free cash flow increased more than 45% to $71 million.
• Management lowered full-year fiscal 2026 net sales guidance to $13.40 billion-$13.55 billion, citing a more challenged consumer environment, softer premiumization, and weaker discretionary attach rates.
• Chewy highlighted growth in Chewy Health and Chewy Vet Care, including the closing of Modern Animal and plans to exit FY2026 with roughly 60 clinics, as a major long-term growth and customer acquisition opportunity.
• The company continues investing in AI, fulfillment, and Sponsored Ads to improve efficiency and margins, and still expects AI-driven benefits of low tens of millions of dollars in FY2026, with a larger ramp in 2027 and beyond.

Chewy Trading Down 5.9%

NYSE:CHWY opened at $18.81 on Friday. Chewy has a 12 month low of $18.38 and a 12 month high of $43.84. The company has a market cap of $7.84 billion, a PE ratio of 31.34, a price-to-earnings-growth ratio of 0.89 and a beta of 1.44. The company has a 50 day simple moving average of $23.63 and a two-hundred day simple moving average of $27.51.

Wall Street Analysts Forecast Growth

A number of equities analysts recently weighed in on the stock. Wolfe Research restated an “outperform” rating and issued a $27.00 price objective on shares of Chewy in a report on Thursday. Wall Street Zen lowered shares of Chewy from a “buy” rating to a “hold” rating in a report on Saturday, May 9th. Royal Bank Of Canada decreased their price objective on shares of Chewy from $47.00 to $34.00 and set an “outperform” rating for the company in a report on Thursday. Morgan Stanley decreased their price objective on shares of Chewy from $43.00 to $42.00 and set an “overweight” rating for the company in a report on Thursday. Finally, Jefferies Financial Group restated a “hold” rating and issued a $23.00 price objective on shares of Chewy in a report on Thursday. One investment analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and six have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $32.62.

Insider Buying and Selling

In other Chewy news, CEO Sumit Singh sold 4,220 shares of Chewy stock in a transaction that occurred on Monday, May 4th. The shares were sold at an average price of $25.60, for a total value of $108,032.00. Following the completion of the sale, the chief executive officer owned 123,955 shares of the company’s stock, valued at approximately $3,173,248. The trade was a 3.29% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, General Counsel Da-Wai Hu sold 8,149 shares of the business’s stock in a transaction on Wednesday, April 1st. The shares were sold at an average price of $26.91, for a total transaction of $219,289.59. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 95,675 shares of company stock valued at $2,459,955. 0.34% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Chewy

A number of hedge funds have recently modified their holdings of the business. Pacer Advisors Inc. grew its position in shares of Chewy by 14.9% during the 4th quarter. Pacer Advisors Inc. now owns 33,734 shares of the company’s stock valued at $1,115,000 after acquiring an additional 4,374 shares during the period. Corient Private Wealth LLC bought a new stake in Chewy during the 4th quarter valued at approximately $315,000. Vident Advisory LLC lifted its stake in Chewy by 7.7% in the 4th quarter. Vident Advisory LLC now owns 67,409 shares of the company’s stock worth $2,228,000 after purchasing an additional 4,800 shares in the last quarter. Delta Global Management LP purchased a new stake in Chewy in the 4th quarter worth $1,278,000. Finally, XTX Topco Ltd lifted its stake in Chewy by 266.9% in the 4th quarter. XTX Topco Ltd now owns 99,191 shares of the company’s stock worth $3,278,000 after purchasing an additional 72,159 shares in the last quarter. Institutional investors own 93.09% of the company’s stock.

Chewy News Roundup

Here are the key news stories impacting Chewy this week:

• Positive Sentiment: Chewy’s Q1 results showed revenue growth, better-than-expected earnings, and margin expansion, with Autoship continuing to support recurring sales. Chewy Q1 Earnings Meet Estimates, Sales Beat on Autoship Strength
• Positive Sentiment: Several analysts kept bullish ratings despite lowering price targets, indicating belief in valuation support and long-term upside. Chewy: Buy Rating Reiterated as Analyst Cuts Price Target to $31 but Sees Significant Upside from Compressed Valuation
• Neutral Sentiment: Chewy completed its acquisition of Modern Animal, expanding its vet clinic footprint and reinforcing its pet health strategy. Chewy Expands Vet Clinics To Build Unified Omnichannel Pet Health Platform
• Negative Sentiment: The main drag on the stock is the lowered fiscal 2026 sales outlook, which points to softer consumer spending and slower near-term growth. Why Chewy (CHWY) Shares Are Plunging Today
• Negative Sentiment: Chewy’s stock also hit a new 52-week low, reflecting investor concern that growth may stay muted despite better profitability. Chewy (NYSE:CHWY) Hits New 52-Week Low – What’s Next?

About Chewy

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.