Chewy (NYSE:CHWY) Posts Earnings Results, Beats Estimates By $0.18 EPS

Chewy (NYSE:CHWY) released its quarterly earnings data on Wednesday. The company reported $0.36 EPS for the quarter, topping analysts’ consensus estimates of $0.18 by $0.18, FiscalAI reports. Chewy had a net margin of 1.99% and a return on equity of 60.02%. The company had revenue of $3.33 billion during the quarter, compared to the consensus estimate of $3.32 billion. During the same period last year, the firm earned $0.33 EPS. The firm’s revenue for the quarter was up 7.3% compared to the same quarter last year.

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 Stock Down 11.7%

NYSE:CHWY opened at $20.54 on Thursday. The firm has a market cap of $8.41 billion, a PE ratio of 34.23, a price-to-earnings-growth ratio of 0.93 and a beta of 1.42. Chewy has a 12 month low of $17.40 and a 12 month high of $40.55. The company’s 50-day moving average price is $22.44 and its two-hundred day moving average price is $23.13.

Analyst Ratings Changes

Several research analysts recently issued reports on the stock. Weiss Ratings raised shares of Chewy from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Tuesday, August 25th. The Goldman Sachs Group lowered their price objective on Chewy from $46.00 to $34.00 and set a “buy” rating on the stock in a research note on Friday, June 12th. Bank of America dropped their target price on Chewy from $33.00 to $31.00 in a report on Thursday, June 11th. Rosenblatt Securities started coverage on Chewy in a research report on Thursday, August 20th. They set a “neutral” rating and a $25.00 target price for the company. Finally, Wolfe Research reaffirmed an “outperform” rating and issued a $27.00 price target on shares of Chewy in a research note on Thursday, June 11th. One investment analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating and seven have given a Hold rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $31.45.

Key Headlines Impacting Chewy

Here are the key news stories impacting Chewy this week:

• Positive Sentiment: Chewy reported second-quarter revenue of $3.33 billion, up 7.3% year over year and slightly ahead of the $3.32 billion consensus estimate. Adjusted EPS of $0.36 also exceeded the cited $0.18 consensus, while net income rose to $80.5 million from $62 million a year earlier. Chewy Announces Second Quarter 2026 Financial Results
• Positive Sentiment: Management raised its full-year outlook, projecting fiscal 2026 revenue of $13.5 billion to $13.6 billion versus consensus of $12.8 billion. Third-quarter revenue guidance of $3.3 billion to $3.4 billion was broadly in line with expectations. Adjusted EBITDA margin reached 6.8%.
• Positive Sentiment: Autoship sales increased to approximately $2.8 billion, representing 84.6% of quarterly revenue, and active customers rose 3.8% to 21.7 million. Management also highlighted AI-related efficiency initiatives and growth in higher-margin services. Chewy Q2 2026 Earnings Call Transcript
• Neutral Sentiment: TD Cowen and Bank of America reaffirmed Buy ratings, but reduced their price targets to $32 and $27, respectively, reflecting disciplined investment, margin considerations and a shift toward services. Chewy analyst rating update
• Negative Sentiment: The main catalyst for the selloff was a free-cash-flow shortfall, compounded by concerns about lower liquidity following acquisition-related cash usage. Gross margin remained flat at 30.4%, while consumers continued to limit discretionary spending on pet treats and other products. Chewy free cash flow report
• Negative Sentiment: Investors viewed the earnings beat as largely in line rather than a major upside surprise, and recent disclosures show open-market insider activity consisting of sales rather than purchases.

Insider Buying and Selling at Chewy

In other news, General Counsel Da-Wai Hu sold 4,203 shares of Chewy stock in a transaction that occurred on Monday, June 29th. The shares were sold at an average price of $19.49, for a total value of $81,916.47. Following the completion of the transaction, the general counsel owned 4,103 shares in the company, valued at approximately $79,967.47. The trade was a 50.60% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Insiders own 0.34% of the company’s stock.

Institutional Investors Weigh In On Chewy

A number of large investors have recently bought and sold shares of the business. Osterweis Capital Management Inc. acquired a new position in Chewy in the second quarter worth $30,000. Los Angeles Capital Management LLC acquired a new stake in shares of Chewy in the fourth quarter valued at $31,000. Aster Capital Management DIFC Ltd acquired a new stake in shares of Chewy in the fourth quarter valued at $45,000. EverSource Wealth Advisors LLC raised its holdings in shares of Chewy by 412.2% in the second quarter. EverSource Wealth Advisors LLC now owns 1,091 shares of the company’s stock valued at $46,000 after buying an additional 878 shares during the last quarter. Finally, Danske Bank A S bought a new position in shares of Chewy in the third quarter valued at about $53,000. 93.09% of the stock is currently owned by institutional investors.

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.