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Chewy
(NYSE:CHWY)
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Rating:66Neutral
Price Target:
$19.50
▼(-21.02% Downside)
Action:Reiterated
Date:09/15/26
CHWY scores 66 primarily due to improving financial performance (profitability turning positive and strong cash generation) and a constructive earnings-call outlook with raised guidance and continued margin expansion. These positives are tempered by weak technical momentum (price below key moving averages with negative MACD) and a relatively high P/E that leaves less room for execution missteps.
Positive Factors
Recurring Autoship Revenue
Autoship gives Chewy a substantial replenishment-driven revenue base, supporting repeat purchases, retention, and greater sales predictability. Its growth is also outpacing company-wide revenue, indicating that recurring customer behavior is strengthening rather than merely tracking overall business expansion.
Negative Factors
Thin and Sensitive Profit Margins
Although profitability has turned positive, low-single-digit margins leave earnings sensitive to fulfillment costs, product mix, promotions, and other operating pressures. The decline versus FY2025 indicates that recent improvement is not yet fully durable, making sustained margin expansion important to the company’s longer-term earnings quality.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring Autoship Revenue
Autoship gives Chewy a substantial replenishment-driven revenue base, supporting repeat purchases, retention, and greater sales predictability. Its growth is also outpacing company-wide revenue, indicating that recurring customer behavior is strengthening rather than merely tracking overall business expansion.
Read all positive factors
Chewy Key Performance Indicators (KPIs)
Any
Active Customers
Indicates the total number of customers making purchases, reflecting the company's market reach and customer base growth.
Indicates the total number of customers making purchases, reflecting the company's market reach and customer base growth.
Data provided by:
The Fly
The FlyChewy (CHWY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.30B
Dividend YieldN/A
Average Volume (3M)9.46M
Price to Earnings (P/E)34.9
Beta (1Y)0.67
Revenue Growth5.86%
EPS Growth81.66%
CountryUS
Employees18,000
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)0.52
Shares Outstanding225,449,020
10 Day Avg. Volume10,790,987
30 Day Avg. Volume9,458,062
Financial Highlights & Ratios
PEG Ratio-1.25
Price to Book (P/B)23.61
Price to Sales (P/S)0.93
P/FCF Ratio20.90
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$28.57Price Target Upside15.72% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering16
EPS Forecast (FY)0.78
Revenue Forecast (FY)$13.52B
Chewy Business Overview & Revenue Model
Company Description
Chewy, Inc., along with its affiliated entities, functions exclusively as an online retail enterprise within the United States. Through its primary website, chewy.com, and its mobile applications, the company provides a comprehensive range of prod...
How the Company Makes Money
Chewy primarily makes money by selling pet products directly to customers through its e-commerce platform. Its revenue is largely transaction-based, generated from the sale of consumable and hardgoods categories such as pet food and treats, litter...
Chewy Earnings Call Summary
Earnings Call Date:Sep 09, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Dec 03, 2026
Earnings Call Sentiment Positive
The call was strongly positive overall. Chewy reported 7.3% revenue growth, continued market-share gains, active-customer and Autoship growth, substantial year-over-year margin expansion, strong momentum in health and acquired businesses, early AI benefits, and improved full-year guidance. These positives outweighed the pressured consumer environment, discretionary and premiumization weakness, limited pricing contribution, timing-related nature of much of the Q2 margin upside, and expected fuel and seasonal headwinds.Positive Updates
Strong Q2 Revenue and Market-Share Performance
Q2 total enterprise net sales reached $3.33 billion, at the high end of guidance, representing 7.3% year-over-year growth. Organic net sales excluding SmartPak and Modern Animal increased 5.7%, driven by active customer growth, NEST Pack expansion, and ongoing market-share gains. Chewy continued to outperform the broader pet category by roughly 2x to 3x.
Negative Updates
Pet Market Remains Under Consumer Pressure
Chewy did not see a meaningful recovery in the pressured consumer backdrop for the pet market and is not assuming a meaningful consumer recovery for the balance of fiscal 2026. Management said the environment has stabilized rather than deteriorated further, but the outlook assumes no improvement in consumer behavior.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Q2 Revenue and Market-Share Performance
Q2 total enterprise net sales reached $3.33 billion, at the high end of guidance, representing 7.3% year-over-year growth. Organic net sales excluding SmartPak and Modern Animal increased 5.7%, driven by active customer growth, NEST Pack expansion, and ongoing market-share gains. Chewy continued to outperform the broader pet category by roughly 2x to 3x.
Read all positive updates
Company Guidance
For fiscal year 2026, Chewy expects total net sales of $13.46 billion to $13.57 billion, representing year-over-year growth 6.8% to 7.7%, including organic net sales growth of 5.5% to 6.3%, with the midpoint not assuming any meaningful improvement in the consumer environment; adjusted EBITDA margin guidance is 6.7% to 6.8%, from 6.6 to 6.8%, implying over 100-base-points of year over year adjusted EBITDA margin expansion and $912 million of adjusted EBITDA at the midpoint. For the third quarter, net sales are expected at $3.323 billion to $3.358 billion, representing reported year over year growth of 6.6% to 7.7% and organic net sales growth of 5.3% to 6.2%, adjusted EBITDA margins of 6.6% to 6.7%, roughly 85-basis-points of year over year expansion at the midpoint, and adjusted diluted earnings per share of around $0.39; full-year guidance also includes share based compensation expense, including related tax taxes, broadly flat to last year, weighted average diluted shares outstanding of approximately 410 million shares, net interest expense of $10 million to $15 million, capital expenditures of 1.5% to 2% of net sales, an effective tax rate of 24% to 26%, full year gross margin expansion at a more moderate pace than fiscal 2025, a mid single digit million dollar fuel headwind, and full year free cash flow through of roughly 80%. AI related initiatives are expected to generate low-tens of millions of dollars of cost savings in fiscal 2026, scaling to approximately $50 million on an annualized basis in fiscal 2027.Chewy Financial Statement Overview
Summary
Income Statement
73
Positive
Balance Sheet
56
Neutral
Cash Flow
78
Positive
| Breakdown | TTM | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 12.98B | 12.60B | 11.86B | 11.15B | 10.12B | 8.97B |
| Gross Profit | 3.82B | 3.75B | 3.47B | 3.16B | 2.83B | 2.39B |
| EBITDA | 399.00M | 397.20M | 271.77M | 161.50M | 138.56M | -17.72M |
| Net Income | 218.10M | 222.80M | 392.74M | 39.58M | 49.90M | -75.21M |
Balance Sheet | ||||||
| Total Assets | 3.74B | 3.59B | 3.01B | 3.19B | 2.52B | 2.09B |
| Cash, Cash Equivalents and Short-Term Investments | 612.20M | 878.80M | 596.66M | 1.13B | 678.59M | 603.08M |
| Total Debt | 1.16B | 556.80M | 502.40M | 527.79M | 471.82M | 410.17M |
| Total Liabilities | 3.37B | 3.10B | 2.75B | 2.68B | 2.36B | 2.07B |
| Stockholders Equity | 370.50M | 497.90M | 261.46M | 510.24M | 160.27M | 14.74M |
Cash Flow | ||||||
| Free Cash Flow | 568.10M | 562.40M | 452.49M | 342.93M | 119.28M | 8.55M |
| Operating Cash Flow | 717.20M | 691.60M | 596.33M | 486.21M | 349.57M | 191.74M |
| Investing Cash Flow | -701.50M | -151.80M | 394.57M | -287.36M | -615.48M | -193.27M |
| Financing Cash Flow | 3.90M | -276.00M | -996.74M | 71.60M | -6.73M | 41.26M |
Chewy Technical Analysis
Negative
24.69
Price Trends
21.92
Negative
21.16
Negative
24.49
Negative
Market Momentum
-1.21
Positive
31.66
Neutral
11.18
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CHWY, the sentiment is Negative. The current price of 24.69 is above the 20-day moving average (MA) of 20.02, above the 50-day MA of 21.92, and above the 200-day MA of 24.49, indicating a bearish trend. The MACD of -1.21 indicates Positive momentum. The RSI at 31.66 is Neutral, neither overbought nor oversold. The STOCH value of 11.18 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CHWY.
Chewy Risk Analysis
Chewy disclosed 51 risk factors in its most recent earnings report. Chewy reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Chewy Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $2.71T | 19.96 | 30.50% | ― | 15.77% | 88.63% | |
66 Neutral | $7.30B | 34.94 | 49.51% | ― | 5.86% | 81.66% | |
64 Neutral | $16.20B | 16.19 | 39.30% | 3.06% | 3.98% | -5.90% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
59 Neutral | $627.26M | 19.78 | 2.58% | ― | -1.32% | ― | |
47 Neutral | $73.35M | -2.25 | -39.54% | ― | -21.25% | -5.40% | |
44 Neutral | $29.48M | -0.99 | -108.76% | 9.40% | -19.67% | 34.91% |
* Consumer Cyclical Sector Average
CHWY
Chewy
18.17
-19.42
-51.66%
AMZN
Amazon
251.52
30.62
13.86%
PETS
Petmed Express
1.36
-1.19
-46.67%
TSCO
Tractor Supply
31.09
-22.31
-41.78%
BARK
BARK Inc Class A
8.12
-7.59
-48.33%
WOOF
Petco Health and Wellness Company
2.19
-1.57
-41.76%
Chewy Corporate Events
Executive/Board ChangesShareholder Meetings
Chewy Shareholders Back Board, Auditor and Executive Pay
Positive
Jul 13, 2026
At its annual meeting of stockholders held on July 9, 2026, Chewy, Inc. re-elected Raymond Svider, Marco Castelli, Nat Goldhaber, James Nelson, and Martin H. Nesbitt as Class I directors to serve until the 2029 annual meeting, or until successors ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.