Chewy (CHWY) Reports 8.3% Revenue Growth in Q3 2025 Amid 70% Stock Decline
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- Revenue Growth Trend: Chewy reported an 8.3% year-over-year revenue growth in Q3 2025, although this growth rate has been slowing over the past three years, indicating challenges in sustaining revenue growth that may affect long-term investor confidence.
- Profit Margin Status: The company's net profit margins were 0.4% and 3.3% for fiscal years 2023 and 2024, respectively, with a third-quarter 2025 margin of 1.9%, reflecting ongoing struggles in profitability that make it difficult to compete with high-growth tech firms.
- Acquisition Strategy: Chewy's acquisition of SmartEquine aims to penetrate the lucrative equine health market, planning to offer subscription-based supplements and personalized nutrition plans, which could enhance customer lifetime value and revenue predictability, despite the overall low margins in the pet industry.
- Market Valuation Analysis: With a current P/E ratio of 67, Chewy's valuation appears high relative to its growth rate, suggesting that investors should exercise caution and consider waiting for improvements in profitability and a drop in valuation before investing.
Analyst Views on CHWY
Wall Street analysts forecast CHWY stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CHWY is 47.06 USD with a low forecast of 42.00 USD and a high forecast of 52.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
20 Analyst Rating
17 Buy
3 Hold
0 Sell
Strong Buy
Current: 32.490
Low
42.00
Averages
47.06
High
52.00
Current: 32.490
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.
