Chewy Matches Q4 Estimates, Offers Optimistic 2026 Guidance
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 days ago
0mins
Should l Buy CHWY?
Source: NASDAQ.COM
- Performance Meets Expectations: Chewy's Q4 revenue rose 8.1% year-over-year to $3.26 billion, matching analyst estimates, while gross margin improved by 90 basis points to 29.4%, indicating the company's stability and profitability in the market.
- Optimistic Future Guidance: The company forecasts revenue growth of 8%-9% for 2026, reaching $13.6 billion to $13.75 billion, exceeding market average expectations and reflecting Chewy's strong growth potential in the pet product retail sector.
- Veterinary Service Expansion: Chewy's veterinary care platform added 10 new practices last year, bringing the total to 18, enhancing customer satisfaction and strengthening relationships with high-value customers, showcasing its strategic advantage in a competitive market.
- SmartEquine Acquisition: This acquisition is expected to contribute approximately $80 million in net sales, although a small fraction of total revenue, it aids Chewy in expanding its business scope and strengthening its market position in pet health.
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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: 25.880
Low
42.00
Averages
47.06
High
52.00
Current: 25.880
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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- Positive Outlook: Chewy projects an 8% revenue growth for fiscal 2026, with expected total revenue between $13.6 billion and $13.75 billion, surpassing analyst expectations and reflecting an increase in active customers.
- 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.
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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.
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- 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.
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See More
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- Revenue Growth: Chewy's net sales increased by 6% in fiscal 2025, totaling $12.6 billion, demonstrating the resilience of its business model and potentially attracting long-term investors.
- Operating Income Doubling: The company's operating income more than doubled from $112.6 million in 2024 to $254.3 million in 2025, indicating a significant improvement in profitability and boosting market confidence.
- Positive Outlook: Chewy projects an 8% revenue growth for fiscal 2026, with expected total revenue between $13.6 billion and $13.75 billion, surpassing analyst expectations and reflecting an increase in active customers.
- 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
Chewy Reports Strong Earnings Amid Stock Decline, Potential Buy Opportunity
- Strong Financial Performance: Chewy's Q4 and fiscal 2025 results showed net sales rising over 6% to $12.6 billion, with operating income more than doubling from $112.6 million in 2024 to $254.3 million, demonstrating resilience amid challenges.
- 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
Company Reports Fantastic Quarterly Results, Stock Price Rises
- 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
Company Delivers Strong Quarterly Results, Stock Price Rises
- 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
Employers Recognize Employee Pet Care Needs
- 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
