Chewy Projects $12.6 Billion Revenue with Significant Customer Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 30 2025
0mins
Source: Fool
- Revenue Growth: Chewy is projected to achieve $12.6 billion in revenue for the fiscal year, reflecting over 6% year-over-year growth, indicating stable growth potential in the pet food market despite modest overall growth rates.
- Customer Base Expansion: The company added 250,000 new customers last quarter, bringing the total to 21.2 million, with an average spend of $595 per customer over the past four quarters, showcasing the strength of its subscription model.
- Market Competitiveness: Despite competition from e-commerce giants like Amazon, Chewy's 84% revenue from recurring deliveries enhances customer loyalty and market share, demonstrating its unique advantages in a niche market.
- Stock Price Correction Opportunity: Chewy's stock has pulled back 33% since the beginning of 2024, potentially providing an attractive entry point for investors, especially as the company's fundamentals continue to improve.
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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: 31.020
Low
42.00
Averages
47.06
High
52.00
Current: 31.020
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 Stock Valuation Attractiveness Analysis
- Valuation Appeal: Chewy's forward P/E ratio of 24 is significantly lower than its five-year average of 73, and its price-to-sales ratio of 1.1 is below the average of 1.4, indicating potential investment value.
- Revenue Growth: In the third quarter, Chewy reported an 8.3% year-over-year revenue increase, along with improved net and gross profit margins, reflecting steady growth in the e-commerce sector.
- Autoship Service: The autoship service revenue grew by 5%, accounting for 84% of total sales, providing Chewy with a more reliable revenue stream and enhancing customer loyalty.
- Customer Loyalty: Chewy has cultivated strong customer loyalty through thoughtful gestures like sending condolence cards, maintaining its market position despite competition from Amazon and Walmart.
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Investment Outlook for Chewy Stock
- Valuation Appeal: Chewy's forward P/E ratio of 24 is significantly lower than its five-year average of 73, and its price-to-sales ratio of 1.1 is below the 1.4 average, indicating potential investment value in the current market.
- Steady Growth: Despite competition from giants like Amazon and Walmart, Chewy's revenue continues to grow steadily, primarily driven by its autoship service, which enhances customer loyalty and revenue predictability.
- Diversification Expansion: Chewy is expanding into pet insurance, veterinary telehealth, and pet prescriptions, which not only diversifies its revenue streams but also strengthens its competitive position in the market.
- Customer Loyalty: Chewy has built trust with customers through thoughtful gestures like sending condolence cards, and while it faces challenges, its future growth potential remains promising, with expectations of continued stable growth.
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