Chewy (NYSE:CHWY) Issues Earnings Results, Beats Expectations By $0.19 EPS

Chewy (NYSE:CHWY) announced its quarterly earnings data on Wednesday. The company reported $0.43 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.24 by $0.19, FiscalAI reports. The business had revenue of $3.36 billion for the quarter, compared to analysts’ expectations of $3.35 billion. Chewy had a return on equity of 53.48% and a net margin of 1.77%.The firm’s quarterly revenue was up 9.7% compared to the same quarter last year. During the same period in the previous year, the business posted $0.35 EPS. 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 1.8%

Chewy stock opened at $20.03 on Thursday. Chewy has a 1-year low of $19.08 and a 1-year high of $43.84. The firm has a market capitalization of $8.35 billion, a PE ratio of 38.52, a price-to-earnings-growth ratio of 0.91 and a beta of 1.44. The firm’s 50 day simple moving average is $23.80 and its 200 day simple moving average is $27.62.

Analyst Ratings Changes

Several analysts have recently issued reports on CHWY shares. Citizens Jmp lowered their price target on shares of Chewy from $48.00 to $45.00 and set a “market outperform” rating on the stock in a research report on Thursday, March 26th. Citigroup reiterated a “market outperform” rating on shares of Chewy in a research note on Thursday. UBS Group lowered their target price on shares of Chewy from $42.00 to $32.00 and set a “neutral” rating on the stock in a report on Thursday, March 26th. Morgan Stanley dropped their target price on Chewy from $49.00 to $43.00 and set an “overweight” rating on the stock in a research report on Tuesday, May 26th. Finally, JPMorgan Chase & Co. cut their price target on Chewy from $40.00 to $35.00 and set an “overweight” rating for the company in a report on Tuesday, June 2nd. One research analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and seven have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $40.38.

Insiders Place Their Bets

In other news, 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. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Sumit Singh sold 83,306 shares of the stock in a transaction on Monday, May 4th. The stock was sold at an average price of $25.60, for a total value of $2,132,633.60. Following the completion of the sale, the chief executive officer owned 874,061 shares in the company, valued at $22,375,961.60. This trade represents a 8.70% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 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. Insiders have sold a total of 95,675 shares of company stock valued at $2,459,955 over the last 90 days. Company insiders own 0.34% of the company’s stock.

Institutional Trading of Chewy

A number of large investors have recently modified their holdings of the business. Sivia Capital Partners LLC purchased a new stake in Chewy in the second quarter valued at approximately $457,000. Vident Advisory LLC purchased a new position in Chewy in the 2nd quarter worth approximately $264,000. DRW Securities LLC purchased a new position in Chewy in the 4th quarter worth approximately $263,000. Kentucky Retirement Systems Insurance Trust Fund bought a new position in shares of Chewy in the 3rd quarter worth $227,000. Finally, CIBC Bancorp USA Inc. bought a new position in shares of Chewy in the 3rd quarter worth $226,000. 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 posted Q1 net sales of $3.36 billion, up 7.7% year over year, and adjusted EPS of $0.43, topping estimates and reinforcing that the core business is still growing. Chewy Announces First Quarter 2026 Financial Results
• Positive Sentiment: Profitability improved, with gross margin rising to 30.1% and management signaling continued discipline on margins and free cash flow, which supports the long-term investment case. Chewy Inc (CHWY) Q1 2026 Earnings Call Highlights
• Positive Sentiment: Several analysts stayed bullish after the report, saying the results were better than feared and pointing to margin discipline and longer-term growth drivers such as veterinary services, clinics, health offerings, and AI initiatives. Chewy Maintains Buy Rating as Stronger‑Than‑Feared Results and Prudent Guidance Underscore Earnings Confidence
• Neutral Sentiment: Chewy is still expanding into higher-margin adjacent businesses, but those initiatives are early and not yet enough to offset near-term concerns about consumer pressure. CHWY Q1 Earnings Call Flags Softer Consumer Spending
• Negative Sentiment: Management trimmed full-year sales guidance, citing softer pet-related spending and a more cautious U.S. consumer, which is weighing on sentiment despite the earnings beat. Chewy Cuts FY Outlook Despite Higher Sales, Profit
• Negative Sentiment: The lowered revenue outlook and mixed analyst reaction suggest investors are worried growth may slow from here, especially after the stock’s sharp run-up in expectations ahead of earnings. Analyst Maintains Hold on Chewy Amid Macro Headwinds, Strategic Concerns, and Vet Services Expansion Upside

Chewy Company Profile

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.