Chewy's Stock Declines Amid Upcoming Earnings Report
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 12 2026
0mins
Should l Buy CHWY?
Source: Barron's
Chewy Inc's stock has declined by 5.01% and has crossed below its 5-day SMA, reflecting investor concerns ahead of its upcoming earnings report.
The company is set to announce its fiscal fourth quarter and full year 2025 financial results on March 25, 2026, which may provide insights into its performance and growth in the pet product market. Despite generating over $9.3 billion in sales during the first nine months of fiscal 2025, Chewy faces challenges with a declining net margin and competitive pressures, which could impact investor sentiment.
As Chewy prepares for its earnings report, the market will be closely watching how the company addresses its profitability challenges and whether its new business lines can sustain growth. Investors are likely to react to the earnings results, which could influence the stock's future performance.
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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: 26.120
Low
42.00
Averages
47.06
High
52.00
Current: 26.120
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.
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- Attractive Valuation: Chewy's forward price-to-earnings ratio stands at just 17, lower than the S&P 500's 20, suggesting that its stock is relatively cheap and presents an opportunity for long-term investors amidst market volatility.
See More
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- Positive Growth Outlook: For fiscal 2026, Chewy projects revenue growth of around 8%, forecasting total revenue between $13.6 billion and $13.75 billion, slightly exceeding analyst expectations, indicating robust customer engagement.
- Attractive Stock Valuation: Despite a 21% decline in stock price at the start of 2026, Chewy's forward P/E ratio stands at just 17, significantly lower than the S&P 500's average of over 20, suggesting the stock is undervalued and appealing for long-term investors.
- Market Competitiveness: Chewy's business remains resilient without relying on price increases, positioning it as a strong candidate for long-term investment, particularly as the pet industry continues to grow steadily.
See More
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- Strong Quarterly Performance: The company's quarterly report reveals a 25% year-over-year revenue increase, reaching $100 million, exceeding market expectations and reflecting robust market demand and effective cost control.
- Stock Price Surge: Following the positive news, the stock price rose 15% in the afternoon of March 26, 2026, indicating increased investor confidence in the company's future growth prospects.
- Positive Market Reaction: Analysts generally maintain an optimistic outlook on the company's prospects, anticipating continued growth in the coming quarters, which could further drive stock price appreciation.
- Successful Strategic Adjustments: The company's adjustments in product lines and market strategies have yielded significant results, strengthening its position in a competitive market and signaling sustainable long-term growth potential.
See More
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- Strong Quarterly Performance: The company reported impressive quarterly results, leading to a rise in stock price on the afternoon of March 26, 2026, reflecting market optimism about its future growth prospects.
- AI and Wealth Creation: Discussions on whether AI could create the world's first trillionaire highlight the immense economic potential of technological advancements, capturing investor interest.
- Unique Market Position: A new report identifies a little-known company as an 'Indispensable Monopoly' providing critical technology needed by Nvidia and Intel, underscoring its significance and growth potential in the industry.
- Investment Recommendation Update: The Motley Fool's analyst team has identified 10 top stocks for investors, with Chewy not making the cut; however, the recommended stocks are expected to yield substantial returns in the coming years, reflecting the ongoing pursuit of quality investment opportunities.
See More
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- Emerging Employee Trend: As U.S. companies mandate a full return to office, pet care is increasingly recognized as a vital short-term support service, with approximately 59 million Americans providing family care in 2024, highlighting the strong demand for pet care.
- Significant Absenteeism Impact: A survey by Wagmo reveals that 75% of pet owners missed work due to pet care issues in the past year, with 26% missing six or more days, indicating a direct impact on employee productivity.
- Expanded Corporate Benefits: Wellthy introduced pet care into its back-up services in 2024, with around 50% of clients offering this benefit, showcasing innovation and adaptability in employee welfare aimed at enhancing satisfaction and retention rates.
- Context of Caregiving Crisis: While pet care may not be the most urgent need, Wellthy's service expansion aligns with the founder's personal caregiving experiences, aiming to alleviate financial and emotional stress for families, thereby improving overall workplace productivity.
See More
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- Earnings Highlights: Chewy reported a 0.5% year-over-year revenue growth in Q4, reaching $3.26 billion, which, while slightly below analyst expectations, reflects a stable customer base with active customers increasing by 4% to 21.3 million.
- Margin Expansion: The company's gross margin improved by 90 basis points to 29.4%, and adjusted EBITDA margins rose from 3.8% to 5%, leading to a 30.4% increase in adjusted EBITDA to $162.3 million, indicating enhanced operational efficiency.
- Future Guidance: Chewy anticipates full-year revenue between $13.6 billion and $13.75 billion, representing growth of 8% to 9%, with adjusted EBITDA projected between $900 million and over $930 million, reflecting a growth rate of 20% to 29%, showcasing confidence in future market conditions.
- Market Appeal: Despite a nearly 21% decline in stock price in 2026, Chewy's forward P/E ratio stands at just 17 times current-year estimates, indicating significant undervaluation for a high-growth company, suggesting substantial upside potential ahead.
See More
