Chewy Reports 8.3% Revenue Growth in Q3, But Low Profit Margins Persist
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3d ago
0mins
Source: NASDAQ.COM
- Revenue Growth: Chewy achieved an 8.3% year-over-year revenue growth in Q3 2025, although this growth rate has been slowing over the past three years, indicating limited growth potential in a highly competitive market.
- Profit Margin Challenges: Chewy'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%, highlighting the company's ongoing struggles in a low-margin industry.
- Strategic Acquisition: Chewy's acquisition of SmartEquine aims to penetrate the high-margin equine health market, planning to offer subscription-based supplements and personalized nutrition plans, which should enhance customer lifetime value and revenue predictability.
- Market Valuation: With a current P/E ratio of 67, Chewy's valuation appears expensive given its growth rate, leading analysts to recommend caution until profitability improves and valuation decreases.
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: 31.300
Low
42.00
Averages
47.06
High
52.00
Current: 31.300
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.
