Chewy, Inc. operates an e-commerce business in the United States through its subsidiaries. It offers pet food and treats, pet supplies, pet medications, and other pet-health products, as well as pet services. Customers are served through its retail websites and mobile applications, including the Autoship subscription program. Founded in 2010, the company is based in Plantation, Florida.
Chewy cuts sales outlook, buys vet chain, but analysts see margin upside
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Chewy cuts full-year sales outlook Chewy lowered its fiscal 2026 net sales guidance to $13.40–$13.55 billion from $13.6–$13.75 billion, citing cautious consumer spending and weaker premiumization. This directly reduces expected future revenue, pushing the stock down and making it look cheap on sales.
This is the main negative force this period, explaining why the stock hit a five-year low valuation.
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Chewy acquires Modern Animal vet clinics Chewy is buying Modern Animal, a tech-enabled vet care provider, adding about $70 million in 2026 revenue and up to $290 million at steady state. This expands into higher-margin pet healthcare, but integration costs will slightly drag margins this year.
This is a new strategic move that shifts Chewy into healthcare services, a key growth driver.
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Analysts back margin-improvement story Major banks like Goldman Sachs and Citi reiterated positive views after strong Q1 EBITDA, pointing to advertising, AI efficiency, and healthcare as margin levers. A fair value estimate of $39.85 implies big upside, though cautious guidance and insider selling temper enthusiasm.
This shows a shift in analyst sentiment that could support the stock price despite weak sales guidance.
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Fed rate stance pressures e-commerce The Fed held rates steady and signaled a possible hike, raising funding costs for buy-now-pay-later and consumer credit. A stronger dollar also hurts international revenue. This macro headwind pushed Chewy and other online retailers down.
This is a new monetary policy development that directly affects Chewy's cost of doing business and consumer spending.
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Chewy's growth slows, AI savings rise, but Wall Street turns cautious
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Chewy cuts 2026 growth outlook Chewy lowered its 2026 growth expectations, signaling weaker demand for pet products. This makes future sales look softer and pushes the stock down because investors pay for growth.
This is the first sign of slowing demand and sets a cautious tone for the period.
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AI cost savings target raised to $50M Chewy said AI will save $50 million a year by fiscal 2027, up from earlier plans. Lower costs mean higher profits without needing more sales, which supports the stock price.
This is a new, concrete profit driver that offsets some demand worries.
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Q2 revenue up 7.3%, vet care and fresh food boom Chewy's second-quarter revenue rose 7.3%, with triple-digit growth in vet clinics and fresh/frozen food. Autoship subscriptions hit 84.6% of sales, showing loyal customers. This beat expectations and points to steady demand.
This is the key earnings report that shows the business is still growing despite a tough pet market.
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JPMorgan downgrade and tariff-benefit concerns JPMorgan cut Chewy to Neutral and lowered its price target to $24, warning that a one-time tariff benefit may have flattered earnings. The stock fell 11% as investors worried the profit beat wasn't sustainable.
This is the latest analyst reaction that explains why the stock dropped even after good results.
Q3 2026
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Chewy's growth slows, AI savings rise, but Wall Street turns cautious
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Chewy cuts 2026 growth outlook Chewy lowered its 2026 growth expectations, signaling weaker demand for pet products. This makes future sales look softer and pushes the stock down because investors pay for growth.
This is the first sign of slowing demand and sets a cautious tone for the period.
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AI cost savings target raised to $50M Chewy said AI will save $50 million a year by fiscal 2027, up from earlier plans. Lower costs mean higher profits without needing more sales, which supports the stock price.
This is a new, concrete profit driver that offsets some demand worries.
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Q2 revenue up 7.3%, vet care and fresh food boom Chewy's second-quarter revenue rose 7.3%, with triple-digit growth in vet clinics and fresh/frozen food. Autoship subscriptions hit 84.6% of sales, showing loyal customers. This beat expectations and points to steady demand.
This is the key earnings report that shows the business is still growing despite a tough pet market.
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JPMorgan downgrade and tariff-benefit concerns JPMorgan cut Chewy to Neutral and lowered its price target to $24, warning that a one-time tariff benefit may have flattered earnings. The stock fell 11% as investors worried the profit beat wasn't sustainable.
This is the latest analyst reaction that explains why the stock dropped even after good results.
News & notes movingCHWY
United States
CHWY▲
Chewy Vet Care Clinics Post Triple-Digit Revenue Growth in Q2
Chewy said its Vet Care business delivered triple-digit revenue growth in the second quarter as its clinic portfolio continues to scale in line with the economic framework management outlined at the company's recent investor event. The company said Chewy Vet Care is posting strong customer satisfaction while maintaining attractive veterinarian productivity and retention, and is demonstrating compelling four-wall economics. Chewy added that the business is driving incremental engagement across its broader ecosystem, and that it is encouraged by progress across Chewy Health, supported by the early performance of Modern Animal. Management believes Chewy Health can deepen customer engagement and expand wallet share while becoming an increasingly meaningful contributor to Chewy's long-term growth and earnings power, and said its outlook does not depend on a meaningful recovery in the broader pet category. Chewy carries a Zacks Rank #4 (Sell), and its shares have lost 28% over the past six months against industry growth of 16.7%.
Chewy Files Omnibus Shelf Registration as Shares Sit 37% Below Fair Value
Chewy has filed an omnibus shelf registration covering Class A common stock, preferred stock, depositary shares, warrants, purchase contracts, and units, giving the retailer broad flexibility to raise capital when conditions are suitable. The filing lands after a tough stretch for the stock, with the share price down 20.5% over the past month and 45.5% year to date to US$18.27, while the 1 year total shareholder return has declined 53.9%. Chewy's most followed valuation narrative points to a fair value of $28.82 against that last close of $18.27, implying the shares are 37% undervalued, though the story could break if Autoship, which drives the bulk of Chewy's sales, stumbles or if new vet clinics and ads underperform expectations. On earnings multiples the picture is less clear: Chewy's current P/E of 26.8x sits above both the US Specialty Retail industry average of 16.2x and the peer average of 15.5x, as well as above a fair ratio of 21.3x. The company is growing revenue and net income while the share price has reset sharply, leaving investors to judge whether that gap represents genuine value or a fair markdown.
CHWY · Capital · Neutral Chewy filed an omnibus shelf registration giving it flexibility to raise capital, a financing event, while shares sit 37% below the narrative fair value.
Chewy Beats Profit Estimates, Raises Full-Year Outlook Despite Soft Pet Spending
Chewy reported fiscal second-quarter net sales of $3.33 billion, up 7.3% year over year, and adjusted earnings per share of $0.36, nearly double the roughly $0.18 analysts had expected, prompting the company to raise its full-year revenue and profitability outlook. Autoship sales jumped 9.3% year over year to $2.82 billion and represented 84.6% of total net sales, while Chewy Health delivered triple-digit revenue growth and specialty categories such as equine and exotics recorded a seventh consecutive quarter of mid-double-digit growth. The company added 208,000 net active customers to reach 21.7 million and returned $200 million to shareholders through share repurchases. CFO Chris Deppe said the quarter's profitability upside included about $10 million from timing benefits and more than $5 million from discrete benefits, while revenue excluding recent acquisitions rose 5.7%, down from 7.7% organic growth in the first quarter. CEO Sumit Singh said the broader pet market did not meaningfully recover during the quarter but also did not deteriorate further, and management said pricing will provide no net benefit in fiscal 2026.
Chewy Files Universal Shelf Registration to Keep Funding Options Open
Chewy filed a universal shelf registration statement covering multiple securities, including common and preferred stock, depositary shares, warrants, purchase contracts, and units the retailer may offer over time. The filing gives the company flexibility to raise capital quickly for potential acquisitions or other corporate investments, and it sits alongside a US$600.0m term loan and sizeable buybacks completed in recent months. The shelf also covers common equity, which could dilute holders and work against those recent share repurchases if Chewy tapped that route. Chewy operates a US-focused e-commerce platform for pet products, and its investment story leans on turning a subscription-heavy pet base and a vet services push into higher, steadier earnings, with new Chewy Vet Care Clinics expected to further penetrate the $25 billion vet services market. Analysts already flag heavy reliance on Autoship and modest customer growth, so the same financing move can read as prudent firepower or potential overreach depending on which Chewy narrative investors find most realistic.
CHWY · Capital · Neutral Chewy filed a universal shelf registration giving it flexibility to raise capital for acquisitions, which could dilute holders and offset recent buybacks.
Chewy Targets Pet Health, AI and Clinics for Next Growth Phase
Chewy is prioritizing U.S. health services, customer spending expansion and artificial intelligence as its next growth phase, CEO Sumit Singh said during a Goldman Sachs conference fireside chat. Singh characterized pet health as a roughly $50 billion total addressable market, including an estimated $12 billion to $15 billion in products such as medications, prescription diets, supplements and flea-and-tick treatments, and said Chewy has become the country's largest pet pharmacy since entering the category in 2018, capturing about $0.70 of every dollar moving online in pet medications and related products. Over the past six years Chewy added approximately $9 billion in incremental revenue, with about $4 billion coming from Chewy Health, and each existing customer who becomes a pharmacy customer adds approximately $300 to $500 in net sales per active customer. The company operates 60 veterinary clinics that Singh said are outperforming expectations, with a Chewy Vet Care clinic expected to generate about $3.5 million in revenue plus roughly $800,000 in additional website sales for approximately $4.3 million combined, reaching break-even in about 20 months, and it acquired Modern Animal to immediately double its clinic base. Chewy continues to target 150,000 to 250,000 net active-customer additions and aims for long-term high-single-digit to low-double-digit revenue growth, self-funding most initiatives through its base business, clinic margins and an expected $50 million in AI savings in 2027, with health acquisitions the next capital-allocation priority after reinvestment and international expansion remaining a lower priority.
CHWY · Capital · Positive Chewy expects $50M in AI savings in 2027 and names health acquisitions as next capital-allocation priority.
CHWY · Demand · Positive Chewy targets pet health growth, with Chewy Health adding ~$4B incremental revenue and pharmacy customers adding $300-500 net sales each.
Chewy Posts 7.3% Sales Gain, Raised Outlook as Evercore Downgrades on Thin Margin Beat
Chewy reported second-quarter results on September 9, 2026, with net sales up 7.3% to $3.33 billion, adjusted EPS of $0.36, and a raised full-year outlook. Following the results, Evercore ISI downgraded Chewy to In Line, while RBC and TD Cowen cut their price targets, and the stock fell roughly 10% intraday before bouncing, sitting about 48% below its 52-week high. Active customers rose 3.8% to 21.7 million, and AI is expected to deliver approximately $50 million of annualized savings in fiscal 2027, but organic revenue growth excluding M&A slowed to 5.7%. The 6.8% adjusted EBITDA margin benefited from tariff refunds, rebate timing and other discrete items that management said accounted for essentially all of the quarter's adjusted EBITDA outperformance versus expectations. According to Evercore ISI, the quarter delivered only a minimal beat-and-raise, leaving the stock in need of an obvious growth catalyst, with none on the horizon, and the shares trade at 35x earnings. Insider Monkey data shows 44 hedge funds held CHWY in the second quarter of 2026, down from 53 in the first quarter.
CHWY · Capital · Negative Evercore downgraded Chewy to In Line and RBC/TD Cowen cut price targets after a thin beat-and-raise, with the margin outperformance driven by one-off tariff refunds and rebate timing.
CHWY · Demand · Positive Chewy posted 7.3% net sales growth to $3.33 billion, raised its full-year outlook, and active customers rose 3.8% to 21.7 million.
EVR · Capital · Negative Evercore ISI downgraded Chewy to In Line, saying the quarter was only a minimal beat-and-raise with no obvious growth catalyst.
RY · Capital · Negative RBC cut its price target on Chewy following the second-quarter results.
Morgan Stanley Cuts Chewy Price Target to $36, Calls 11% Sell-Off Overdone
Morgan Stanley cut its price target on Chewy to $36 from $37 while maintaining an Overweight rating, calling the stock's 11% sell-off on earnings day an overreaction in a note titled Managing Through the Treat-cession. Chewy's Q2 fiscal 2026 net sales of $3.33 billion grew 7.3% year over year, but organic growth was 5.7% after stripping out contributions from the SmartPak and Modern Animal acquisitions, decelerating approximately 120 basis points from Q1. The EBITDA beat included roughly $15 million in one-time items, and excluding those, the midpoint of fiscal year 2026 EBITDA guidance decreased by approximately 6 basis points, while stock-based compensation jumped 17% quarter over quarter. Morgan Stanley sees weakness stabilizing at roughly 6% organic growth and views the redesigned Chewy+ membership program, launching very shortly, as the key catalyst that could drive fiscal 2027 top-line acceleration. The firm's DCF yields a $36 base case, a $55 bull case requiring 8% revenue growth and 13% margins, and a $14 bear case assuming 4% revenue growth.
CHWY · Capital · Neutral Morgan Stanley cut its Chewy price target to $36 from $37 while keeping Overweight, calling the 11% earnings-day sell-off overdone.
CHWY · Demand · Negative Organic growth decelerated to 5.7% in Q2 from Q1, with FY2026 EBITDA guidance midpoint lowered and stock-based compensation up 17% QoQ.
MS · Capital · Neutral Morgan Stanley issued the analyst note cutting Chewy's price target and maintaining its Overweight rating.
Oracle surges on AI growth, ACV Auctions jumps on $1.9B Copart deal
Oracle shares surged 6.3% in premarket trading after the software and cloud computing company reported fiscal first-quarter 2027 results that beat Wall Street expectations across several key measures. Revenue rose 30% year over year to $19.35 billion, topping the $19.13 billion consensus, while adjusted earnings per share of $1.92 comfortably exceeded expectations in the $1.73 to $1.75 range. The strongest part of the report was Oracle's cloud infrastructure business, where revenue jumped 121% from a year earlier to $7.4 billion, and the company said GPU utilization stood at 97.9%. Oracle also secured about $30 billion in new AI-related contracts during the quarter and raised its fiscal 2027 revenue guidance to above $90 billion. Separately, ACV Auctions shares soared 43.6% in premarket trading after Copart announced a definitive agreement to acquire the online automotive marketplace in an all-cash deal valued at approximately $1.9 billion, with Copart launching a tender offer for all outstanding ACV Auctions shares at $10.50 in cash. Copart shares gained 6.2% premarket after reporting fiscal fourth-quarter revenue of $1.15 billion, narrowly beating the $1.14 billion consensus, though earnings per share of $0.35 fell below the $0.39 analyst estimate. Adobe shares fell 2.8% before the open after its fourth-quarter revenue guidance midpoint came in just below analyst expectations, even as fiscal third-quarter revenue of $6.76 billion and non-GAAP earnings per share of $6.13 each beat consensus by about 1%; longtime CEO Shantanu Narayen said Anil Chakravarthy will become President and CEO on Dec. 1, 2026, with Narayen moving to Executive Chair. Chewy slipped 1.9% after JPMorgan downgraded the online pet retailer to Neutral from Overweight and cut its price target to $24 from $29, while Frequency Electronics jumped 30.5% on record fiscal first-quarter 2027 results and Alliance Entertainment Holding surged 69.1% on fiscal 2026 results that beat expectations.
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ACVA · Capital · Positive Copart agreed to acquire ACV Auctions in an all-cash deal valued at ~$1.9B, with a $10.50/share tender offer.
ADBE · Capital · Negative Adobe's Q4 revenue guidance midpoint came in just below analyst expectations, overshadowing its Q3 beat.
CHWY · Capital · Negative JPMorgan downgraded Chewy to Neutral from Overweight and cut its price target to $24.
CPRT · Capital · Positive Copart announced a definitive agreement to acquire ACV Auctions for ~$1.9B and reported Q4 revenue of $1.15B beating consensus.
ORCL · Capital · Positive Oracle's fiscal Q1 2027 results beat expectations with revenue up 30% and adjusted EPS of $1.92, and it raised FY2027 revenue guidance above $90B.
ORCL · Demand · Positive Oracle secured about $30 billion in new AI-related contracts during the quarter, with cloud infrastructure revenue up 121%.
Chewy Shares Fall 11% Despite Q2 Beat and Raised Guidance
Chewy shares are down 11% this week as of noon ET on Thursday, even after the online pet goods retailer beat Wall Street's sales expectations in its second-quarter earnings report on Wednesday and posted adjusted earnings per share in line with analyst hopes. The company also raised its full-year guidance, but analysts noted that a one-time tariff benefit may have helped Chewy beat earnings, and the stock tumbled regardless. Second-quarter highlights included sales growth of 7.3%, with 5.7% organic growth, a 3.8% increase in active customers to 21.7 million, a 1.9% rise in net spend per active customer, autoship revenue growth of 9.3%, adjusted EPS climbing 9.1%, and Chewy Vet Care clinic revenue soaring by triple digits. Management guided for 6.8% to 7.7% revenue growth in 2026. CEO Sumit Singh said the pressured consumer backdrop for the pet market did not see a meaningful recovery but did not deteriorate further, adding that the environment has broadly stabilized and Chewy continues to outperform the broader pet category by roughly 2x to 3x.
John Ternus's First Apple Product Launch as CEO: What to Watch
Apple is kicking off a new era with COO John Ternus taking the stage for the first time for the company's iPhone event, expected to include the debut of Apple's first foldable iPhone as well as upgrades to its iPhone models and the Apple Watch lineup. Investors can also expect an earnings bash that includes Jersey Mike's, Chewy, and American Eagle, with Jersey Mike's reporting its first quarterly financial results as a public company. Wall Street will be watching Jersey Mike's pricing power and traffic amid high food costs, while American Eagle and Chewy will offer insights on consumer spending, with focus on American Eagle's ability to beat earnings expectations and Chewy's sales momentum and profitability.
Chewy, the e-commerce pet food and supplies retailer, will announce earnings this Wednesday before market hours. Analysts expect revenue to grow 6.9% year on year, slowing from the 8.6% increase in the same quarter last year. Last quarter, Chewy met revenue expectations with $3.36 billion, up 7.7% year on year, and impressed with an EBITDA beat. Analysts have generally reconfirmed their estimates over the past 30 days, and Chewy rarely misses revenue expectations. Peers Revolve and Amazon reported strong Q2 results, with Revolve up 12.4% and Amazon up 19.6%, both beating expectations. Chewy shares are up 4.7% over the past month, with an average analyst price target of $30.32 versus the current price of $23.66.
Few Companies Quantify AI Gains Despite Heavy Spending
Despite widespread discussion of artificial intelligence, few companies are quantifying its financial benefits, according to a Barclays strategist note. Venu Krishna wrote that while nearly half of all companies mentioned AI on recent earnings calls, only 12% were willing to quantify AI-related value capture, with tech, financials, and healthcare firms making up 68% of that group. The average reported gain in operational efficiencies was 56%, but these assessments have not changed meaningfully over three years, raising questions about their precision. Notable exceptions include Meta, whose AI tools boosted Facebook ad clicks by 8.3% and conversions by 15.7%; Chewy, targeting $50 million in cost savings by fiscal 2027; and Hilton, aiming for 75-100 basis points of margin expansion for hotel owners. Meanwhile, PwC's new Global Data Centre Outlook projects global AI infrastructure investment will hit a record $31.6 trillion through 2050, with annual data center capital expenditure rising from about $800 billion in 2026 to $1.8 trillion by 2050.
Chewy CEO Sumit Singh Sells 81,841 Shares for $1.9 Million
Chewy CEO Sumit Singh sold 81,841 shares of Class A Common Stock for approximately $1.9 million at a weighted average price of $22.93 per share. The transactions, executed between July 31 and August 3, 2026, included 49,477 shares sold under pre-arranged Rule 10b5-1 trading plans and 32,364 shares withheld for tax obligations on vested restricted stock units. Following the sales, Singh retains direct ownership of about 887,000 shares and indirect ownership of 5,526 shares held by his spouse, representing a combined stake valued at $20.49 million based on the August 3 closing price of $22.97. The disposition reduced his total equity holdings by 8%.
Carillon Eagle Mid Cap Growth Fund reported that Chewy underperformed in the second quarter of 2026 as macroeconomic headwinds pressured results. Higher gas prices and lower consumer confidence led the online pet retailer to slightly reduce its revenue forecast. The fund noted that Chewy continues to gain new customers profitably, although the current backdrop is weighing on customers' willingness to purchase premium products. Chewy shares closed at $22.82 on July 30, 2026, with a one-month return of 6.71% and a 52-week loss of 38.04%, giving the company a market capitalization of $9.34 billion.
CHWY · Demand · Negative Higher gas prices and lower consumer confidence reduced demand for premium products, leading to a slight revenue forecast cut.
Chewy Posts 8% Sales Growth While Petco Revenue Stays Flat
Chewy reported an 8% increase in sales for the quarter ended May 2026, while Petco Health and Wellness saw flat revenue in the same period. Chewy's quarterly revenue reached $3.3 billion, compared to Petco's $1.5 billion. Chewy trades at 0.7 times sales and 19 times EBITDA with a slight net cash balance, whereas Petco trades at 0.12 times sales and 10 times EBITDA but carries $2.3 billion in debt against a $750 million market cap. Chewy generates 84% of its sales from Autoship repurchases and is expanding into vet care, private label goods, and advertising to boost margins.
Gen Z rushes to save for retirement, defying the spend-now trend in pursuit of financial independence
Bloomberg reports that a segment of Gen Z is accelerating savings and investments for retirement from a young age, sparking a movement dubbed Retirement-Maxxing. One example is Natalie Badour, age 26, who has amassed around 300,000 US dollars by saving more than half her income and holding shares in Chewy Inc. Data from Charles Schwab shows Gen Z begins saving on average at age 19, while Gen X started at 32 and Baby Boomers at 35. Vanguard Group reveals that one-third of Gen Z who opened an IRA last year chose to invest the full annual limit of 7,000 US dollars. A report by the Investment Company Institute and the University of Chicago found that older Gen Z members have nearly three times as much in retirement accounts as Gen X did at the same age, after adjusting for inflation. Analysts see this behavior rooted in economic uncertainty, such as high home prices, elevated interest rates, and risks to Social Security. Many savers also embrace the FIRE concept for financial independence and early retirement. However, experts at Vanguard caution that excessive saving may lead to neglecting credit card debt, resulting in high interest costs.
SCHW · Demand · Positive Charles Schwab is mentioned as a data source showing Gen Z starts saving earlier, implying potential growth in assets under management from young investors.
The Vanguard Group, Inc. · Demand · Positive Vanguard Group is cited for data on Gen Z IRA contributions, suggesting increased assets under management from young savers.
CHWY · Demand · Positive Gen Z saver Natalie Badour holds shares in Chewy, indicating retail demand for the stock, but no direct impact on Chewy's product demand.
Chewy's upcoming earnings report has drawn investor attention as forecasts point to higher earnings per share and revenue compared to a year earlier, yet the stock holds a Zacks Rank of #5 (Strong Sell). The rank reflects downward earnings estimate revisions even as expectations still call for year-over-year EPS growth, highlighting fragile sentiment around margins, customer acquisition costs, and competition. Chewy's narrative projects $15.7 billion in revenue and $569.8 million in earnings by 2029, requiring 6.8% annual revenue growth and a $314.6 million earnings increase from the current $255.2 million. Some of the most optimistic analysts model earnings of about $683.7 million by 2029, but rising acquisition costs and competition could alter that outlook.
ClearBridge Says Chewy Concerns Overstated, Maintains Position
ClearBridge Investments stated in its second-quarter 2026 investor letter that concerns about Chewy being an AI loser are overstated, citing the online pet retailer's competitive positioning, customer purchasing dynamics, and margin expansion opportunities. The comments came as part of the firm's SMID Cap Growth Strategy commentary, which noted that Chewy shares were pressured by mixed end-market growth trends and AI-related fears despite solid company-specific execution. Chewy closed at $20.88 per share on July 10, 2026, with a market capitalization of $8.55 billion, and posted a one-month return of 7.96% while losing 44.78% over the past 52 weeks.
CHWY · Demand · Positive ClearBridge says concerns about Chewy being an AI loser are overstated, citing competitive positioning and customer purchasing dynamics
Chewy shares rise 10.1% since last earnings report
Chewy shares have gained about 10.1% over the past month, outperforming the S&P 500. The company reported first-quarter fiscal 2026 adjusted earnings of 43 cents per share, meeting estimates, while net sales of $3,357.2 million beat expectations. Autoship customer sales grew 10.5% to $2,832.6 million, representing 84.4% of total net sales. Chewy revised its full-year net sales outlook to between $13.4 billion and $13.55 billion, down from prior guidance of $13.6 billion to $13.75 billion, citing softer consumer trends. The consensus earnings estimate has since declined 18.29%, and the stock carries a Zacks Rank #5 (Strong Sell).
Kohl's, Chewy, Wayfair draw retail meme-stock attention on diverging fundamentals
Kohl's posted its best comparable sales in over four years, Chewy's near-zero debt and record 8% EBITDA margin sparked acquisition talk on Reddit, and Wayfair surged 29% in a month toward analyst fair value above $93. Kohl's comparable sales fell 1.1% in the fiscal first quarter, revenue reached $3.17 billion, inventory dropped 8% year over year, and revolving credit borrowings fell to zero from $545 million. Chewy's first-quarter revenue rose 8% to $3.36 billion, with Autoship at 84% of net sales and 21.5 million active customers, while a $200 million buyback was completed in the quarter. Wayfair's 5.2% adjusted EBITDA margin was its strongest first quarter in five years, but a stockholders' deficit of $2.84 billion and $2.9 billion in long-term debt keep the risk profile elevated.
Online retail stocks post strong Q1, but shares dip 1.7% on average
Online retail stocks delivered a very strong first quarter, with aggregate revenues beating analyst consensus estimates by 2.3% and next-quarter revenue guidance coming in 4% above expectations. Among the six companies tracked, Amazon stood out with revenues of $181.5 billion, up 16.6% year on year and 2.4% above estimates, while Chewy reported $3.36 billion in revenue, up 7.7% and in line with expectations, alongside an impressive EBITDA beat. Coupang was the weakest performer relative to estimates, with revenue of $8.50 billion missing by 0.6%, though it still beat EBITDA forecasts. Despite the strong overall results, the group's average share price has declined 1.7% since reporting, with Wayfair surging 25.3% and Coupang falling 11.1%.
CPNG · Capital · Negative Coupang missed revenue estimates by 0.6% and its shares fell 11.1% since reporting.
W · Capital · Positive Wayfair shares surged 25.3% since reporting, though the article does not specify the driver.
AMZN · Capital · Neutral Amazon beat revenue estimates but is part of a group whose shares dipped 1.7% on average; no specific negative news for Amazon.
CHWY · Capital · Neutral Chewy reported revenue in line with expectations and an EBITDA beat, but group shares dipped; no specific negative news for Chewy.
TD Cowen Names Chewy Top Small and Mid Cap Pick for 2026
TD Cowen has named Chewy its top small and mid cap idea for 2026, citing business initiatives and market share potential. The call follows Chewy securing a new seven-year senior secured term loan credit facility and its addition to the Russell 2500 Index and Russell 2500 Growth Benchmark. Chewy's share price gained 9.63% over the past week but remains down 36.43% year to date, with a one-year total shareholder return decline of 48.10%. A Simply Wall St narrative model estimates a fair value of $31.05 per share versus a last close of $21.29, implying the stock is undervalued, though its current P/E of 34.2x is well above the US Specialty Retail industry average of 19.4x and the peer average of 14.8x.
CHWY · Capital · Positive TD Cowen named Chewy top small/mid cap pick for 2026, citing business initiatives and market share potential, and the stock is deemed undervalued by a narrative model.
LegalZoom, Angi, Instacart, and Chewy Stocks Rise on Improved Consumer Outlook
Shares of LegalZoom, Angi, Instacart, and Chewy rose in afternoon trading after consumer confidence edged up to 91.2 in June. While the Present Situation Index contracted, the Expectations Index strengthened, signaling improved consumer outlook for income, business, and labor market conditions. LegalZoom gained 3.1%, Angi rose 3%, Instacart climbed 3.4%, and Chewy advanced 3.2%. The uptick in forward-looking optimism suggests consumers may increase spending on non-essential goods and services, benefiting consumer discretionary companies.
Reddit's 69% revenue growth and 40% EBITDA margin dwarf Chewy's single-digit equivalents, exposing two fundamentally different business models. Reddit's confirmed AI licensing deals with Google and OpenAI create high-margin revenue streams Chewy's warehouse-bound model structurally cannot replicate. Reddit posted advertising revenue of $625 million, up 74% year over year, and total revenue of $663.41 million at a 40.1% adjusted EBITDA margin, while Chewy's revenue rose 7.7% to $3.357 billion with Autoship sales hitting $2.833 billion. Reddit's quarterly capex was just $1.09 million compared to Chewy's $37.7 million, and Reddit authorized a $1.0 billion buyback versus Chewy's $200 million in Q1. Reddit's next ARPU print remains the key catalyst to watch.
Chewy shares jumped 5.5% after the e-commerce pet retailer announced it is expanding its use of artificial intelligence and automation across customer service, pharmacy operations, fulfillment, and marketing to improve efficiency. The company built the required infrastructure in the first quarter of fiscal 2026 to deploy AI at a larger scale and expects these initiatives to generate efficiency benefits in the low tens of millions of dollars during fiscal 2026, with a more significant contribution anticipated in 2027 and beyond. Chewy's stock is down 37.9% year-to-date and trading at $20.79 per share, 50.9% below its 52-week high of $42.33 from September 2025.
Chewy's management team has lowered its 2026 growth expectations. The announcement was made during afternoon trading on June 24, 2026, with the video published on June 26, 2026. No further details on the revised outlook were provided.
Analyst Optimism on Chewy’s Margin Initiatives Reshapes Investment Case
Several major banks including Citi, Goldman Sachs, TD Cowen, RBC and UBS have reiterated positive views on Chewy following its latest quarterly results, pointing to improving profitability, efficiency gains and multiple growth initiatives across advertising, healthcare and subscriptions. Goldman Sachs highlighted stronger than expected first quarter 2026 EBITDA margins driven by advertising, product mix and AI powered efficiency, though cautious guidance and insider selling temper enthusiasm. Analysts see Chewy’s expansion into pet healthcare and enhanced advertising platform as key levers that could deepen customer relationships and support margins over time. The investment narrative projects $15.9 billion revenue and $622.1 million earnings by 2029, requiring 8.0% yearly revenue growth and an earnings increase of about $399 million from $222.8 million today, with a fair value estimate of $39.85 representing a 120% upside to the current price.
Wall Street's Favorite Stocks: Insulet a Buy, Chewy and Alarm.com to Avoid
StockStory identifies Insulet as a stock where Wall Street's bullishness is justified, while recommending investors avoid Chewy and Alarm.com despite high consensus price targets. Insulet, maker of the Omnipod insulin delivery system, is favored for its steady constant currency growth, expanding free cash flow margin, and rising returns on capital. Chewy faces sluggish sales growth and low gross margins, while Alarm.com struggles with slowing demand and static operating margins. Insulet trades at 21.5 times forward earnings, Chewy at 7.9 times forward EV/EBITDA, and Alarm.com at 2.3 times forward price-to-sales.
Chewy Stock Soars 6.6% After Amazon Prime Day Hits Record $8.3 Billion in U.S. Online Sales
Shares of Chewy jumped 6.6% in afternoon trading after Adobe reported that Amazon Prime Day drove $8.3 billion in U.S. online sales, the biggest shopping day of the year so far. The 5.3% year-over-year increase surpassed Adobe's initial estimates and exceeded the previous year's Thanksgiving sales of $6.4 billion, signaling resilient consumer spending during promotional events. The broader consumer discretionary sector found support, with Amazon and Shopify also seeing positive momentum, while a drop in the 10-year yield below 4.5% provided valuation support. Chewy's stock remains down 43.2% year-to-date and is trading 56.2% below its 52-week high of $43.43 from June 2025.
CHWY · Demand · Positive Chewy shares rose 6.6% after Amazon Prime Day record sales signaled resilient consumer spending, benefiting pet supply demand.
AMZN · Demand · Positive Amazon Prime Day drove record $8.3B in U.S. online sales, signaling strong consumer demand for Amazon's platform.
Central Garden & Pet Holds Edge Over Chewy in Pet-Care Stock Comparison
Central Garden & Pet currently offers a more compelling opportunity than Chewy, according to a Zacks Investment Research analysis. Chewy, with a market capitalization of roughly $8 billion, saw its shares lose 32.8% over the past three months and carries a Zacks Rank #4 (Sell), while Central Garden & Pet, valued at approximately $3 billion, gained 15.2% and holds a Zacks Rank #1 (Strong Buy). Central Garden & Pet's diversified portfolio, operational improvements, and focus on higher-margin categories contributed to a pet segment operating margin expansion of 290 basis points to 16.3% in its latest quarter, and the company reaffirmed fiscal 2026 adjusted EPS guidance of $2.70 or better. Chewy continues to gain market share through its Autoship subscription model and healthcare expansion, but lowered its fiscal 2026 sales outlook to $13.40-$13.55 billion amid a cautious consumer backdrop. The Zacks Consensus Estimate for Central Garden & Pet's current fiscal-year EPS has increased 7 cents to $2.89 over the past 60 days, while Chewy's estimate decreased 10 cents to $1.53.
Reddit Sentiment Diverges from Wall Street on Celsius, Chewy, and Estée Lauder
Reddit users are showing bullish sentiment on Celsius Holdings, Chewy, and Estée Lauder, but Wall Street analysts agree with only two of the three. Celsius sentiment scores ranged from 86 to 90 in early June, driven by a post calling the stock criminally undervalued, yet shares are down 38% year to date and gross margins have compressed to 48% from 52%. Chewy sentiment rose from 78 to 88, supported by an acquisition thesis and a 52% jump in GAAP net income, with analysts setting a $31 target well above the $18 price. Estée Lauder sentiment swung from 35 to 72 after a viral thread about Michael Burry's position, but analysts remain cautious with a $95 target versus an $84 price, citing a $100 million tariff headwind and a 10,000-position restructuring.
Tractor Supply Favored Over Chewy as a Defensive Consumer Stock Pick for 2026
The Motley Fool compares Chewy and Tractor Supply as investment options for 2026, concluding that Tractor Supply is the better defensive buy. Chewy reported fiscal 2025 revenue of nearly $12.6 billion and net income of roughly $222.8 million, while Tractor Supply posted revenue close to $15.5 billion and net income of approximately $1.1 billion. Tractor Supply trades at a forward price-to-earnings ratio of 14.3 times versus Chewy's 23.1 times, and it is the only one of the two that pays a dividend. Both stocks have declined significantly over the past five years, with Chewy down 78% and Tractor Supply down nearly 10%, but the analysis favors Tractor Supply's established physical footprint and fewer competitive threats over Chewy's e-commerce disruption model.
CHWY · Capital · Negative Article compares Chewy unfavorably to Tractor Supply, citing lower revenue, lower net income, higher P/E ratio, no dividend, and 78% stock decline over 5 years.
TSCO · Capital · Positive Article favors Tractor Supply as a defensive buy, highlighting higher revenue, higher net income, lower P/E ratio, dividend payment, and only 10% decline over 5 years.
Adobe, Chewy, and Duolingo Are Trading at Multi-Year Lows and Could Be Contrarian Buys
Adobe, Chewy, and Duolingo have seen their stock prices fall to levels not seen in years, presenting potential contrarian buying opportunities. Adobe is down 66% over five years and trades at just eight times forward earnings, yet it posted record revenue of $6.6 billion in its latest quarter, up 13% year over year. Chewy has dropped 77% in five years but grew net sales nearly 8% to $3.4 billion and net income 52% to $95 million, with a forward price-to-earnings ratio of 12. Duolingo lost over 70% in the past 12 months, but daily active users rose 21% to 56.5 million and revenue increased 27% to $292 million, giving it a forward P/E of under 19.
Chewy acquires Modern Animal to expand pet healthcare platform
Chewy is acquiring technology-enabled veterinary care provider Modern Animal, accelerating its push into the pet healthcare market. The combined businesses are expected to operate 60 clinics by the end of fiscal 2026, with embedded revenue contribution approaching $290 million at steady state. Chewy's fiscal 2026 outlook includes an estimated $70 million revenue contribution from Modern Animal, with total net sales guidance of $13.40 billion to $13.55 billion, representing year-over-year growth of 6.3% to 7.5%. Management expects the acquisition to create a modest margin-rate drag during 2026 as integration progresses, while the company plans to open 10 to 12 Chewy Vet Care locations this year. Chewy shares have fallen 22.8% in the past three months, and the stock currently carries a Zacks Rank #4 (Sell).
CHWY · Capital · Positive Chewy acquires Modern Animal to expand pet healthcare platform, with expected revenue contribution and clinic growth
WOOF · Competition · Negative Chewy's acquisition of Modern Animal intensifies competition in pet healthcare, potentially pressuring Petco's market position
Chewy launches Rare Breed premium dog treats to expand pet care offering
Chewy has launched Rare Breed, a new premium dog treat line focused on simple, high-quality ingredients and tied to animal welfare initiatives. The product expands Chewy's presence in premium pet products and adds a mission-driven angle to its pet care offering. The launch comes as Chewy's stock trades at $18.21, with multi-year returns declining as much as 77.3% over five years. The company aims to deepen its role in everyday pet care and attract higher-spending pet owners through welfare partnerships and quality ingredients.
CHWY · Demand · Positive Chewy launches Rare Breed premium dog treats, expanding its product offering and aiming to attract higher-spending pet owners.
The Motley Fool highlights Chewy, DraftKings, and Rocket Lab as three growth stocks worth buying now for long-term holds. Chewy shares have slumped despite a 7.7% revenue increase and expanding autoship sales, with analysts maintaining a strong buy consensus and a $30.82 price target that implies over 60% upside. DraftKings has rebounded more than 30% from its March low as fears over new rivals Polymarket and Kalshi ease, with last quarter's revenue up 17% to $1.65 billion and the company launching its own prediction market app. Rocket Lab is down nearly 30% from its recent peak, but the SpaceX IPO has spotlighted the $370 billion space industry, where Rocket Lab's small and medium-lift rockets and satellite technology business position it for growth in a market where medium-lift launches are expected to dominate.
Chewy edges out American Eagle Outfitters as the better consumer stock for 2026
A head-to-head analysis of American Eagle Outfitters and Chewy concludes that Chewy is the more resilient consumer stock for 2026. American Eagle Outfitters reported fiscal 2025 revenue of nearly $5.5 billion and net income of $192.0 million, while Chewy posted revenue of nearly $12.6 billion and net income of approximately $222.8 million. Chewy's Autoship program and expansion into veterinary clinics through the acquisition of Modern Animal are cited as key strengths, whereas American Eagle Outfitters faces headwinds from a new 10% global tariff and discretionary spending pressure. American Eagle Outfitters trades at a forward P/E of 10.3x and a P/S ratio of 0.6x, compared to Chewy's forward P/E of 23.0x and identical P/S ratio of 0.6x. The analysis favors Chewy for its predictable, recurring revenue model and diversified growth into pet health services.
Chewy's Autoship Sales Hit $2.83 Billion, Driving Customer Growth
Chewy's Autoship program generated customer sales of approximately $2.83 billion in the first quarter of fiscal 2026, a more than 10% year-over-year increase that accounted for 84.4% of total net sales. Autoship growth outpaced overall company growth, reinforcing the durability and predictability of the recurring revenue model. Net sales per active customer rose 4.6% to $597, while management highlighted plans to enhance the Autoship platform and digital marketing to accelerate product line attachment rates and customer acquisition. Chewy continues to gain market share, with Autoship adoption and resilient customer spending positioning the program as a key long-term growth driver.
Chewy Stock Tumbles 45% in Three Months Amid Slowing Growth and Lowered Sales Outlook
Chewy shares have plunged 45.3% over the past three months, underperforming the industry's 0.2% dip and the S&P 500's 11% gain. Management lowered fiscal 2026 net sales guidance to $13.40-$13.55 billion from $13.60-$13.75 billion, citing a softer consumer environment and weaker category growth, while also warning that active customer additions may trend toward the lower end of 150,000-250,000 per quarter. The company faces pressure on premiumization and net sales per active customer, and growth initiatives like Autoship enhancements have been muted by macroeconomic headwinds. Chewy's trailing 12-month price-to-sales ratio of 0.58 sits below the industry average of 2.22, and the stock closed at $17.77, 59.5% below its 52-week high of $43.84. Zacks Investment Research assigns Chewy a Rank #4 (Sell), advising existing investors to consider reducing exposure and prospective investors to remain on the sidelines.
CHWY · Demand · Negative Chewy lowered sales guidance and warned of slower customer additions due to softer consumer environment and weaker category growth.
Carvana and Chewy Stocks Fall After Fed Holds Rates and Signals Potential Hike
Shares of online retailers Carvana and Chewy declined sharply after the Federal Reserve voted unanimously to hold its benchmark rate at 3.5% to 3.75% and its dot plot pointed toward a potential hike rather than a cut. Carvana fell 9.5% and Chewy dropped 4% as the sector, which increasingly relies on buy-now-pay-later and consumer credit, faces higher funding costs when short-end rates are expected to rise. A stronger dollar also pressured international revenue for e-commerce platforms. Carvana is now trading 33.8% below its 52-week high of $95.69 from January 2026.
CVNA · Monetary · Negative Carvana fell 9.5% as higher rates raise funding costs for its buy-now-pay-later model and a stronger dollar pressures international revenue.
CHWY · Monetary · Negative Chewy fell 4% as higher rates increase funding costs for buy-now-pay-later and consumer credit, and a stronger dollar hurts international revenue.
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