Chewy's Stock Declines Amid Upcoming Earnings Report
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 12 2026
0mins
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: 20.640
Low
42.00
Averages
47.06
High
52.00
Current: 20.640
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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- Upcoming Earnings Reports: Cramer highlights key earnings reports on the horizon, including Apple's Worldwide Developers Conference, suggesting that Apple's decision to refrain from aggressive AI infrastructure spending may prove wise and could influence its stock performance.
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Chewy's Stock Drops 11% Amid Analyst Downgrades and Economic Concerns
- Cautious CEO Remarks: Chewy's CEO Sumit Singh highlighted at the J.P. Morgan conference that while the pet food industry remains resilient, consumers are feeling increased economic pressure, indicating market concerns about the company's future performance.
- Analyst Price Target Cuts: Analysts from Morgan Stanley and Barclays lowered their price targets for Chewy to $43 and $40 respectively, reflecting pessimistic expectations for the company's revenue guidance, although both maintained their buy ratings on the stock.
- Stock Hits All-Time Low: Chewy's stock reached an all-time low on May 20, and despite a slight recovery, it has dropped over 11% overall, indicating a lack of investor confidence in the company's growth prospects.
- Cautious Optimism in Market: Despite the significant drop in Chewy's stock price, some investors express guarded optimism regarding the growth potential of its Autoship program, suggesting that the current stock price has fallen to realistic levels and may present a buying opportunity.
See More
Chewy Stock Hit by Analyst Price Target Cuts
- Stock Decline: Chewy's stock fell over 11% in May, hitting an all-time low on the 20th, reflecting investor concerns about the company's future performance amid increasing economic pressures.
- Analyst Target Cuts: Analysts from Morgan Stanley and Barclays lowered their price targets for Chewy from $49 and $48 to $43 and $40, respectively, yet maintained their 'overweight' ratings, indicating confidence in the company's long-term potential despite short-term challenges.
- Macroeconomic Impact: CEO Sumit Singh highlighted that while the pet food industry remains resilient, consumers are feeling more economic strain, which may lead to adjustments in the company's revenue guidance, affecting market expectations.
- Cautious Market Reaction: Although Chewy's stock has seen a slight rebound after significant declines, investor optimism regarding its Autoship program remains cautious, with overall market sentiment still subdued and not significantly improving the stock's performance.
See More
Apple's WWDC 2026: New AI Strategy Sparks Interest
- WWDC 2026 Launch: Apple kicks off its 2026 Worldwide Developers Conference in Cupertino, with expectations to unveil a new version of its Siri digital assistant, marking a strategic shift in AI that could enhance user experience and strengthen market competitiveness.
- New AI Integration System: The introduction of CoreAI will enable developers to more easily integrate AI into their applications, with consumer rollout expected in the fall, potentially accelerating app innovation and increasing the attractiveness of Apple's ecosystem.
- Market Reaction: Despite the Nasdaq's 4.7% decline last week, Apple's AI strategy may draw investor interest, especially against the backdrop of broader tech stock pressures, potentially creating new investment opportunities for the company.
- Analyst Perspectives: While some analysts express skepticism about the new Siri's functionality, suggesting it lacks significant differentiation from competitors, Apple's ongoing innovation efforts may still enhance its market position and brand value in the long run.
See More
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- Apple Conference Highlights: Apple's Worldwide Developers Conference is set to unveil a new conversational Siri assistant powered by Google's Gemini AI model, which is expected to enhance user experience and solidify its leadership in the smart assistant market.
- Strong Stock Performance: Since the end of March, Apple's stock has surged over 20%, gaining an additional 12.5% after reporting near-perfect earnings on April 30, closing at a record high of $315 on Tuesday, leading to high investor expectations for the upcoming product announcements.
- Honeywell's Outlook Update: Honeywell will host a 2026 guidance update on Monday, projecting its technology division to achieve at least $6.5 billion in adjusted EBIT by 2030 after spinning off its aerospace business, indicating significant future growth potential.
- Market Data Focus: The Consumer Price Index (CPI) set to be released this week is expected to show a 4.3% annual increase and a 2.9% rise in core CPI, with market expectations for future interest rate changes heavily influenced by these figures, particularly amid fluctuating energy prices.
See More
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- Market Pressure Intensifies: The market is under increasing pressure due to rising interest rates and elevated oil prices, particularly amid a wave of new stock offerings that require investors to sell existing shares to participate, leading to declines in major indexes.
- Employment Report Impact: A stronger-than-expected jobs report has pushed Treasury yields higher, diminishing hopes for near-term rate cuts and further exacerbating market uncertainty, leaving investors concerned about future economic prospects.
- Divergent Tech Stock Performance: With Apple's Worldwide Developers Conference approaching, despite questions surrounding its AI strategy, Cramer believes the company's cautious approach to AI infrastructure spending has proven wise, resulting in its stock outperforming other large tech companies.
- Upcoming SpaceX IPO: As SpaceX is expected to debut on the Nasdaq on June 12, Cramer urges investors to quickly raise the necessary funds to participate in the offering, arguing that the market may struggle to advance as long as new stock pressures exist.
See More
Market Faces Pressure from Rising Rates and Oil Prices
- Market Pressure Factors: Jim Cramer warns that the combination of rising interest rates and elevated oil prices could continue to pressure the market, especially with a wave of upcoming AI-related stock offerings that investors must navigate cautiously.
- Major Index Performance: Following a stronger-than-expected jobs report that pushed Treasury yields higher, all three major indexes closed lower, indicating a diminished hope for near-term rate cuts and impacting investor sentiment negatively.
- Upcoming Earnings Reports: Cramer highlights key earnings reports on the horizon, including Apple's Worldwide Developers Conference, suggesting that Apple's decision to refrain from aggressive AI infrastructure spending may prove wise and could influence its stock performance.
- Impact of SpaceX IPO: Cramer anticipates that SpaceX will debut on the Nasdaq on June 12, urging investors to raise the necessary funds to participate, arguing that the market may struggle to advance until new stock offerings are addressed.
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