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Chewy had a bit of a messy quarter, but it was solid overall. The stock is cheap for a growing retailer in a recession-resistant business.
Chewy remains a buy with a $25 price target, supported by margin inflection and resilient performance despite recent volatility. Q2 net sales grew 7.3% YoY to $3.33B, with Autoship sales comprising 84.6% of total revenue, though growth rates are decelerating. Gross margin was boosted by $15M in one-off benefits; adjusted margins would have declined YoY, raising caution on profitability trends.
CHWY lifts its fiscal 2026 outlook as stable pet demand, share gains, Autoship growth and AI savings support execution without a market rebound.
Chewy grew sales and adjusted earnings per share by 7% and 9% in its latest quarter. However, analysts noted a one-time tariff benefit helped figures, making the "beat" less impressive.
Chewy TodayCHWYChewy$21.32 +0.57 (+2.72%) As of 12:05 PM Eastern This is a fair market value price provided by Massive. Learn more.52-Week Range$17.40▼$40.55P/E Ratio35.62Price Target$31.05Add to WatchlistChewy, Inc.'s NYSE: CHWY 2026 price weakness, including its early-September sell-off, looks increasingly disconnected from the company's operating strength and may give long-term investors an opening.
Chewy's Q2 sales beat estimates as customer growth, Autoship strength and cost discipline support results and a higher fiscal 2026 outlook.
Chewy fell 11% yesterday as the once-strong growth story seems to be falling apart.
Chewy delivered strong EBITDA and better-than-expected Q2 results, driven by organic sales growth and an expanding customer base. CHWY's strategic expansion into new verticals, notably veterinary care clinics, is diversifying revenue and reducing reliance on core pet food and toy sales. I view CHWY as undervalued, with improving KPIs like net sales per active customer and robust free cash flow supporting a bullish outlook.