Chewy Shares Surge on Strong 2026 Outlook and Solid Q4 Results
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 26 2026
0mins
Should l Buy CHWY?
Source: Fool
- 2026 Revenue Guidance: Chewy forecasts an 8%-9% revenue growth for 2026, reaching $13.6 billion to $13.75 billion, surpassing the market average estimate of $13.59 billion, indicating strong growth potential in the pet products retail market.
- Solid Q4 Performance: Despite a modest 8.1% year-over-year revenue increase to $3.26 billion in Q4, which met expectations, adjusted EBITDA rose from $124.5 million to $162.3 million, with gross margin improving by 90 basis points to 29.4%, reflecting enhanced operational efficiency.
- Veterinary Service Expansion: Chewy's Vet Care (CVC) added 10 new practices last year, bringing the total to 18, exceeding expectations and serving as a customer acquisition engine that strengthens relationships with high-value customers, supporting long-term growth.
- SmartEquine Acquisition: The acquisition is expected to contribute approximately $80 million in net sales, although it represents less than 1% of total revenue, it helps Chewy expand into equine health, further enhancing its competitive position in the market.
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Analyst Views on CHWY
Wall Street analysts forecast CHWY stock price to rise
20 Analyst Rating
17 Buy
3 Hold
0 Sell
Strong Buy
Current: 21.280
Low
42.00
Averages
47.06
High
52.00
Current: 21.280
Low
42.00
Averages
47.06
High
52.00
About CHWY
Chewy, Inc. is an e-commerce business geared toward pet products and services. The Company’s products consist of pet food and treats, pet supplies and pet medications, other pet-health products, and pet services. It serves its customers through its retail websites, and its mobile applications and focuses on delivering customer service, competitive prices, convenience, including Chewy’s Autoship subscription program, and a range of pet food, treats and supplies, and pet healthcare products and services. It partners with approximately 3,200 of the brands in the pet industry, and it creates and offers its own private brands. It owns a number of trademark registrations and applications in the United States and in foreign jurisdictions. These trademarks include American Journey, Blue Box Event, Careplus, Chewy, Chewy.com, Chewy Vet Care, Dr. Lyon’s, Frisco, Goody Box, Onguard, PetMD, PracticeHub, Tiny Tiger, True Acre Farms, Tylee’s, Vibeful, and The Zoo.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Chewy to Report Q1 2026 Financial Results on June 10
- Earnings Release Schedule: Chewy will announce its fiscal Q1 2026 financial results before the market opens on June 10, 2026, which is expected to significantly impact investor sentiment.
- Conference Call Details: Management will host a conference call and webcast at 8:00 am ET, providing an in-depth analysis of the financial results to help investors understand the company's performance.
- Registration Recommendation: To avoid delays, Chewy encourages participants to register for the conference call in advance to ensure smooth access and obtain a unique PIN, enhancing the overall experience.
- Replay Availability: A replay of the conference call will be available on the company's investor relations website for at least 90 days post-event, ensuring that investors who cannot attend live can still access critical information.
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Grab, Norwegian Cruise Line, and Chewy Stocks Hit New Lows Amid Economic Concerns
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- Norwegian Cruise Line Struggles: Norwegian Cruise Line Holdings (NCLH) shares dropped to a 52-week low of $15.45 on Friday, driven by rising fuel costs and high debt levels, compounded by a recent hantavirus outbreak that has raised global health concerns, resulting in a year-to-date decline of over 31%.
- Chewy's Price Target Cut: Chewy's stock slipped to a fresh 52-week low of $21.16 on Friday, with Citi lowering its price target from $40 to $37 while maintaining a 'Buy' rating, reflecting broader sector weakness amid softening consumer demand and persistent inflation, leading to a year-to-date decline of over 36%.
- Shifting Market Sentiment: Retail sentiment on Stocktwits shows Grab in 'bearish' territory, while NCLH remains in 'bullish' territory, indicating differing market perceptions; Chewy, despite challenges, is in 'extremely bullish' territory, suggesting investor optimism about its future prospects.
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- Shareholder Communication Plan: Despite the rejection, Cohen plans to take his proposal directly to eBay shareholders, reflecting his dissatisfaction with the company's governance and board composition, which may provoke shareholder scrutiny of management.
- Strong Financial Performance: eBay's latest quarterly results show an 18% year-over-year increase in gross merchandise volume and a 19% rise in revenue, alongside 136 million active buyers, demonstrating robust market performance that counters Cohen's claims of poor management.
- Market Competition and Strategic Adjustments: While eBay faces increasing competition in e-commerce, analysts suggest that the company has carved out a niche in collectibles and trading cards, indicating a need to explore alternative revenue streams, particularly in advertising, to sustain growth momentum.
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- Chewy Margin Expansion: Chewy (CHWY) trades at a forward P/E of less than 14, aiming to increase adjusted EBITDA margins from 5.7% to 10% by pursuing higher-margin revenue streams and leveraging artificial intelligence for operational efficiency, with EBITDA expected to surge around 27% this year, demonstrating strong operating leverage.
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- Market Environment Challenges: Despite the market nearing all-time highs, the consumer sector faces challenges such as tariffs, high gasoline prices, and consumer confidence issues, yet these factors also present investors with opportunities to find undervalued stocks, particularly in the consumer goods sector outside of technology.
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- Competitive Pressure Analysis: Boston Scientific's stock has declined due to increased competition, yet analysts suggest holding the stock, indicating confidence in its future potential and reflecting market interest in the medical device sector.
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- Chewy's Sustained Growth: Although Chewy's stock has plummeted nearly 80% from its all-time high, its net sales grew by 6% to $12.6 billion in fiscal 2025, with operating income surging by 125%, indicating successful cost control, and net sales are projected to grow by 9% in fiscal 2026.
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See More
Chewy to Report Q1 2026 Financial Results on June 10
- Earnings Release Schedule: Chewy will announce its fiscal Q1 2026 financial results before the market opens on June 10, 2026, which is expected to significantly impact investor sentiment.
- Conference Call Details: Management will host a conference call and webcast at 8:00 am ET, providing an in-depth analysis of the financial results to help investors understand the company's performance.
- Registration Recommendation: To avoid delays, Chewy encourages participants to register for the conference call in advance to ensure smooth access and obtain a unique PIN, enhancing the overall experience.
- Replay Availability: A replay of the conference call will be available on the company's investor relations website for at least 90 days post-event, ensuring that investors who cannot attend live can still access critical information.
See More
Grab, Norwegian Cruise Line, and Chewy Stocks Hit New Lows Amid Economic Concerns
- Grab's Stock Decline: Grab Holdings' shares fell 0.6% on Friday to $3.46, marking a six-day decline and a new 52-week low, despite a 24% revenue growth in Q1; concerns over inflation and rising oil prices have heavily impacted investor sentiment, leading to a year-to-date decline of over 30%.
- Norwegian Cruise Line Struggles: Norwegian Cruise Line Holdings (NCLH) shares dropped to a 52-week low of $15.45 on Friday, driven by rising fuel costs and high debt levels, compounded by a recent hantavirus outbreak that has raised global health concerns, resulting in a year-to-date decline of over 31%.
- Chewy's Price Target Cut: Chewy's stock slipped to a fresh 52-week low of $21.16 on Friday, with Citi lowering its price target from $40 to $37 while maintaining a 'Buy' rating, reflecting broader sector weakness amid softening consumer demand and persistent inflation, leading to a year-to-date decline of over 36%.
- Shifting Market Sentiment: Retail sentiment on Stocktwits shows Grab in 'bearish' territory, while NCLH remains in 'bullish' territory, indicating differing market perceptions; Chewy, despite challenges, is in 'extremely bullish' territory, suggesting investor optimism about its future prospects.
See More
GameStop CEO Ryan Cohen's $55B eBay Bid Rejected
- Acquisition Offer Rejected: GameStop CEO Ryan Cohen's unsolicited $55 billion bid for eBay was rejected, with eBay labeling the offer as neither credible nor attractive, indicating strong resistance to external takeover attempts.
- Shareholder Communication Plan: Despite the rejection, Cohen plans to take his proposal directly to eBay shareholders, reflecting his dissatisfaction with the company's governance and board composition, which may provoke shareholder scrutiny of management.
- Strong Financial Performance: eBay's latest quarterly results show an 18% year-over-year increase in gross merchandise volume and a 19% rise in revenue, alongside 136 million active buyers, demonstrating robust market performance that counters Cohen's claims of poor management.
- Market Competition and Strategic Adjustments: While eBay faces increasing competition in e-commerce, analysts suggest that the company has carved out a niche in collectibles and trading cards, indicating a need to explore alternative revenue streams, particularly in advertising, to sustain growth momentum.
See More
Investment Opportunities in Consumer Stocks
- e.l.f. Beauty Growth Potential: e.l.f. Beauty (ELF) trades at a forward P/E of just 15, despite consistently gaining market share in the mass cosmetics sector, and the recently acquired premium skincare brand Rhode is poised for growth through product line expansion and distribution channels, enhancing the company's position in the competitive beauty industry.
- Chewy Margin Expansion: Chewy (CHWY) trades at a forward P/E of less than 14, aiming to increase adjusted EBITDA margins from 5.7% to 10% by pursuing higher-margin revenue streams and leveraging artificial intelligence for operational efficiency, with EBITDA expected to surge around 27% this year, demonstrating strong operating leverage.
- JAKKS Pacific Future Opportunities: JAKKS Pacific (JAKK) trades at a forward P/E of 10, achieving its highest gross margins in over 15 years despite declining toy sales, and plans to launch a large-scale next-generation anime and digital creator cultural platform, which is expected to attract high-priced, high-margin products and drive future growth.
- Market Environment Challenges: Despite the market nearing all-time highs, the consumer sector faces challenges such as tariffs, high gasoline prices, and consumer confidence issues, yet these factors also present investors with opportunities to find undervalued stocks, particularly in the consumer goods sector outside of technology.
See More
Market Analysis: Stock Performance and Investment Recommendations
- Competitive Pressure Analysis: Boston Scientific's stock has declined due to increased competition, yet analysts suggest holding the stock, indicating confidence in its future potential and reflecting market interest in the medical device sector.
- Cloud and Defense Opportunities: Nokia is seen as a dual beneficiary in cloud computing and defense, with analysts recommending its stock, highlighting its strong performance in technology and defense contracts, which may drive future growth.
- Retail Sector Challenges: Chewy faces challenges in the retail sector, with analysts unable to recommend buying due to the impact of war, reflecting a cautious market attitude towards high-growth retail companies.
- Infrastructure Investment Outlook: Caterpillar is viewed as a beneficiary of growing infrastructure and energy demands, with analysts recommending its stock, demonstrating confidence in its strong demand in construction and energy sectors.
See More
Investment Opportunities Amid Record High Stock Markets
- MercadoLibre's Growth Potential: MercadoLibre achieved $8.8 billion in revenue for Q1 2026, marking a 49% year-over-year increase, and despite competitive pressures from Amazon, its diversified business model continues to generate additional revenue streams, showcasing strong growth potential in the Latin American e-commerce market.
- Chewy's Sustained Growth: Although Chewy's stock has plummeted nearly 80% from its all-time high, its net sales grew by 6% to $12.6 billion in fiscal 2025, with operating income surging by 125%, indicating successful cost control, and net sales are projected to grow by 9% in fiscal 2026.
- Shopify's Ecosystem Advantage: Shopify's revenue reached nearly $3.2 billion in Q1 2026, a 34% year-over-year increase, and despite facing competitive pressures from AI tools, its established e-commerce ecosystem helps maintain its market competitiveness, with expected revenue growth of 28% for fiscal 2026.
- Market Valuation and Investment Outlook: Despite high P/E ratios of 47 for MercadoLibre and 110 for Shopify, the ongoing revenue growth may prompt investors to reassess these companies' valuations, particularly in light of the long-term growth potential in the Latin American and global e-commerce markets.
See More
