Chewy Set to Report Earnings; Investors Eye Key Metrics
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy CHWY?
Source: Fool
- Customer Growth Trends: Chewy experienced a 43% year-over-year increase in active customers during fiscal 2020, but growth has slowed post-pandemic, with rates of 8%, 1%, and 2% from 2021 to 2023, indicating intensified market competition and changing consumer behaviors.
- Sales Performance: While Chewy's total net sales surged by 47% in fiscal 2020, the growth rate has declined annually, dropping to just 6% in fiscal 2024, reflecting the impact of inflation and macroeconomic pressures on non-essential pet product sales.
- Subscription Stability: In Q3 2025, Chewy's Autoship customers accounted for 83.9% of total net sales, up from 79.2% in fiscal 2024, indicating positive progress in customer retention and repeat purchase rates.
- Future Outlook: Analysts project Chewy's revenue to grow by 6% and 7% in 2025 and 2026, respectively, with adjusted EBITDA increasing by 25% and 24%, showcasing the company's potential in expanding its service ecosystem, even as its high-growth phase may be over.
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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: 23.370
Low
42.00
Averages
47.06
High
52.00
Current: 23.370
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 Set to Report Earnings; Investors Eye Key Metrics
- Customer Growth Trends: Chewy experienced a 43% year-over-year increase in active customers during fiscal 2020, but growth has slowed post-pandemic, with rates of 8%, 1%, and 2% from 2021 to 2023, indicating intensified market competition and changing consumer behaviors.
- Sales Performance: While Chewy's total net sales surged by 47% in fiscal 2020, the growth rate has declined annually, dropping to just 6% in fiscal 2024, reflecting the impact of inflation and macroeconomic pressures on non-essential pet product sales.
- Subscription Stability: In Q3 2025, Chewy's Autoship customers accounted for 83.9% of total net sales, up from 79.2% in fiscal 2024, indicating positive progress in customer retention and repeat purchase rates.
- Future Outlook: Analysts project Chewy's revenue to grow by 6% and 7% in 2025 and 2026, respectively, with adjusted EBITDA increasing by 25% and 24%, showcasing the company's potential in expanding its service ecosystem, even as its high-growth phase may be over.
See More
Chewy Shows Signs of Stock Stabilization
- Customer Growth Trends: Chewy experienced a 43% increase in active customers during fiscal 2020, but post-pandemic growth has declined, with a -2% rate in fiscal 2023, reflecting intensified market competition and changing consumer behaviors.
- Sales Stability: Despite inflation and competition from Amazon, Chewy has stabilized its business by locking in more Autoship subscription customers, with 83.9% of net sales in Q3 2025 coming from Autoship customers, indicating a shift towards a more resilient business model.
- Optimistic Financial Outlook: Analysts project Chewy's revenue and adjusted EBITDA to grow by 6% and 25% respectively in 2025, highlighting the company's potential in expanding its service ecosystem, even as overall growth rates slow down.
- Attractive Valuation: With an enterprise value of $8.9 billion, Chewy's valuation stands at just 9 times next year's adjusted EBITDA, suggesting that its stock is undervalued in the market, potentially offering a good buying opportunity for investors.
See More
Elliott Builds Major Stake in Synopsys to Enhance Profitability
- Investor Stake Increase: Elliott Investment Management has built a multibillion-dollar stake in chip design software company Synopsys, aiming to enhance its software and services profitability, which is expected to positively impact the company's future financial performance.
- Positive Market Reaction: Following the news of Elliott's stake increase, Synopsys's stock rose by 2.5% in early trading, indicating optimistic market sentiment regarding its growth potential and likely attracting more investor interest.
- Strong Industry Demand: Nvidia CEO Jensen Huang stated at the Synopsys Converge 2026 conference that the number of Synopsys tool users is set to soar, reflecting the ongoing demand for efficient tools in the chip design industry and further solidifying Synopsys's market position.
- AI's Profound Impact: Analysts noted that while AI will change workflows, the demand for subscriptions to Synopsys and Cadence will remain robust, with expectations that user engagement will significantly rise as AI features expand, thereby driving revenue growth for the company.
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Oil Price Surge Raises Market Concerns
- Oil Price Surge: Following Iraq's declaration of force majeure on foreign-operated oil fields, Brent crude prices have surged past $112 per barrel and WTI over $98, which will directly impact the global economy by increasing living costs and reducing corporate profitability.
- Job Market Focus: Investors are set to closely monitor upcoming initial jobless claims and productivity reports; while these are not primary employment indicators, their significance has risen amid growing concerns about economic stagnation, potentially influencing future monetary policy decisions.
- Consumer Sentiment Survey: The University of Michigan's consumer survey will provide a fuller picture of how the Iran conflict is affecting consumer sentiment, which is crucial as consumer spending accounts for about two-thirds of the U.S. economy, thus impacting growth prospects significantly.
- KB Home Earnings: As one of the largest home builders in the U.S., KB Home's earnings report will shed light on housing market dynamics, particularly as high energy prices and the ongoing Iran conflict may suppress housing activity.
See More
Next Week's Market Focus: Middle East Developments and Earnings Reports
- Middle East Tensions: The U.S. is intensifying efforts to pressure Iran to reopen the Strait of Hormuz, a critical chokepoint for approximately 20% of global oil supply, which may exacerbate uncertainty in global energy markets.
- Military Escalation: American warplanes and helicopters are targeting Iranian vessels and drones, with officials indicating that full security of the waterway could take weeks, leading to sustained impacts on oil prices.
- GameStop Earnings Focus: GameStop is set to report its fourth-quarter results on Tuesday, with notable investor Michael Burry increasing his stake, raising market interest in the stock's long-term value potential.
- KB Home Earnings Outlook: KB Home will also announce results on Tuesday, with analysts projecting a sharp earnings drop of over 60% and a 20% year-over-year revenue decline, providing critical insights into the U.S. housing market.
See More
Small Investors' Opportunity to Double Returns
- Chewy's Market Performance: Despite Chewy's stock plummeting nearly 80% from pandemic highs, its sales continue to grow, with revenue expected to increase by 6% in fiscal 2025 and 8% in the following year, indicating a positive impact from new business lines.
- Innovation with Chewy Plus: The introduction of Chewy Plus, offering free shipping and 5% rewards, aims to enhance customer loyalty and drive sales growth, similar to Amazon Prime's model.
- Target's Transformation Plans: New CEO Michael Fiddelke has announced a $5 billion investment in store remodeling and technology upgrades, with a projected sales increase of about 2% for fiscal 2026, signaling hope for recovery.
- Target's Dividend Advantage: Despite challenges, Target maintains a 54-year streak of dividend increases, with an annual dividend of $4.56 per share yielding 3.9%, significantly higher than the S&P 500 average of 1.2%, providing investors with stable returns.
See More
Chewy Set to Report Earnings; Investors Eye Key Metrics
- Customer Growth Trends: Chewy experienced a 43% year-over-year increase in active customers during fiscal 2020, but growth has slowed post-pandemic, with rates of 8%, 1%, and 2% from 2021 to 2023, indicating intensified market competition and changing consumer behaviors.
- Sales Performance: While Chewy's total net sales surged by 47% in fiscal 2020, the growth rate has declined annually, dropping to just 6% in fiscal 2024, reflecting the impact of inflation and macroeconomic pressures on non-essential pet product sales.
- Subscription Stability: In Q3 2025, Chewy's Autoship customers accounted for 83.9% of total net sales, up from 79.2% in fiscal 2024, indicating positive progress in customer retention and repeat purchase rates.
- Future Outlook: Analysts project Chewy's revenue to grow by 6% and 7% in 2025 and 2026, respectively, with adjusted EBITDA increasing by 25% and 24%, showcasing the company's potential in expanding its service ecosystem, even as its high-growth phase may be over.
See More
Chewy Shows Signs of Stock Stabilization
- Customer Growth Trends: Chewy experienced a 43% increase in active customers during fiscal 2020, but post-pandemic growth has declined, with a -2% rate in fiscal 2023, reflecting intensified market competition and changing consumer behaviors.
- Sales Stability: Despite inflation and competition from Amazon, Chewy has stabilized its business by locking in more Autoship subscription customers, with 83.9% of net sales in Q3 2025 coming from Autoship customers, indicating a shift towards a more resilient business model.
- Optimistic Financial Outlook: Analysts project Chewy's revenue and adjusted EBITDA to grow by 6% and 25% respectively in 2025, highlighting the company's potential in expanding its service ecosystem, even as overall growth rates slow down.
- Attractive Valuation: With an enterprise value of $8.9 billion, Chewy's valuation stands at just 9 times next year's adjusted EBITDA, suggesting that its stock is undervalued in the market, potentially offering a good buying opportunity for investors.
See More
Elliott Builds Major Stake in Synopsys to Enhance Profitability
- Investor Stake Increase: Elliott Investment Management has built a multibillion-dollar stake in chip design software company Synopsys, aiming to enhance its software and services profitability, which is expected to positively impact the company's future financial performance.
- Positive Market Reaction: Following the news of Elliott's stake increase, Synopsys's stock rose by 2.5% in early trading, indicating optimistic market sentiment regarding its growth potential and likely attracting more investor interest.
- Strong Industry Demand: Nvidia CEO Jensen Huang stated at the Synopsys Converge 2026 conference that the number of Synopsys tool users is set to soar, reflecting the ongoing demand for efficient tools in the chip design industry and further solidifying Synopsys's market position.
- AI's Profound Impact: Analysts noted that while AI will change workflows, the demand for subscriptions to Synopsys and Cadence will remain robust, with expectations that user engagement will significantly rise as AI features expand, thereby driving revenue growth for the company.
See More
Oil Price Surge Raises Market Concerns
- Oil Price Surge: Following Iraq's declaration of force majeure on foreign-operated oil fields, Brent crude prices have surged past $112 per barrel and WTI over $98, which will directly impact the global economy by increasing living costs and reducing corporate profitability.
- Job Market Focus: Investors are set to closely monitor upcoming initial jobless claims and productivity reports; while these are not primary employment indicators, their significance has risen amid growing concerns about economic stagnation, potentially influencing future monetary policy decisions.
- Consumer Sentiment Survey: The University of Michigan's consumer survey will provide a fuller picture of how the Iran conflict is affecting consumer sentiment, which is crucial as consumer spending accounts for about two-thirds of the U.S. economy, thus impacting growth prospects significantly.
- KB Home Earnings: As one of the largest home builders in the U.S., KB Home's earnings report will shed light on housing market dynamics, particularly as high energy prices and the ongoing Iran conflict may suppress housing activity.
See More
Next Week's Market Focus: Middle East Developments and Earnings Reports
- Middle East Tensions: The U.S. is intensifying efforts to pressure Iran to reopen the Strait of Hormuz, a critical chokepoint for approximately 20% of global oil supply, which may exacerbate uncertainty in global energy markets.
- Military Escalation: American warplanes and helicopters are targeting Iranian vessels and drones, with officials indicating that full security of the waterway could take weeks, leading to sustained impacts on oil prices.
- GameStop Earnings Focus: GameStop is set to report its fourth-quarter results on Tuesday, with notable investor Michael Burry increasing his stake, raising market interest in the stock's long-term value potential.
- KB Home Earnings Outlook: KB Home will also announce results on Tuesday, with analysts projecting a sharp earnings drop of over 60% and a 20% year-over-year revenue decline, providing critical insights into the U.S. housing market.
See More
Small Investors' Opportunity to Double Returns
- Chewy's Market Performance: Despite Chewy's stock plummeting nearly 80% from pandemic highs, its sales continue to grow, with revenue expected to increase by 6% in fiscal 2025 and 8% in the following year, indicating a positive impact from new business lines.
- Innovation with Chewy Plus: The introduction of Chewy Plus, offering free shipping and 5% rewards, aims to enhance customer loyalty and drive sales growth, similar to Amazon Prime's model.
- Target's Transformation Plans: New CEO Michael Fiddelke has announced a $5 billion investment in store remodeling and technology upgrades, with a projected sales increase of about 2% for fiscal 2026, signaling hope for recovery.
- Target's Dividend Advantage: Despite challenges, Target maintains a 54-year streak of dividend increases, with an annual dividend of $4.56 per share yielding 3.9%, significantly higher than the S&P 500 average of 1.2%, providing investors with stable returns.
See More
