CHWY

The upcoming report from Chewy (CHWY) is expected to reveal quarterly earnings of $0.36 per share, indicating an increase of 9.1% compared to the year-ago period. Analysts forecast revenues of $3.32 billion, representing an increase of 6.8% year over year. The consensus EPS estimate for the quarter has undergone a downward revision of 0.6% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe. Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock. While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight. With that in mind, let's delve into the average projections of some Chewy metrics that are commonly tracked and projected by analysts on Wall Street. Based on the collective assessment of analysts, 'Net Sales- Consumables' should arrive at $2.25 billion. The estimate indicates a change of +4.9% from the prior-year quarter. The average prediction of analysts places 'Net Sales- Hardgoods' at $384.21 million. The estimate points to a change of +11% from the year-ago quarter. The consensus estimate for 'Net Sales- Other' stands at $399.29 million. The estimate indicates a change of -34.4% from the prior-year quarter. The collective assessment of analysts points to an estimated 'Active customers' of 21,662 . The estimate is in contrast to the year-ago figure of 20,906 . The combined assessment of analysts suggests that 'Net sales per active customer' will likely reach $603.42 . The estimate compares to the year-ago value of $591.00 . View all Key Company Metrics for Chewy here>>> Over the past month, shares of Chewy have returned +0.6% versus the Zacks S&P 500 composite's +2.5% change. Currently, CHWY carries a Zacks Rank #4 (Sell), suggesting that it may underperform the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> . Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Chewy (CHWY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Wall Street expects a year-over-year increase in earnings on higher revenues when Chewy (CHWY) reports results for the quarter ended July 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on September 9. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. This online pet store is expected to post quarterly earnings of $0.36 per share in its upcoming report, which represents a year-over-year change of +9.1%. Revenues are expected to be $3.32 billion, up 6.8% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 0.61% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction). The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Chewy, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -0.61%. On the other hand, the stock currently carries a Zacks Rank of #4. So, this combination makes it difficult to conclusively predict that Chewy will beat the consensus EPS estimate. While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Chewy would post earnings of $0.43 per share when it actually produced earnings of $0.43, delivering no surprise. Over the last four quarters, the company has beaten consensus EPS estimates just once. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Chewy doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Chewy (CHWY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Chewy (NYSE:CHWY) primarily generates revenue by acting as an online retailer that sells roughly 100,000 unique items--including food, treats, prescribed medications, and everyday wellness supplies for domestic companion animals--supplied by thousands of partner brands across the United States. While simultaneously expanding its physical veterinary care practices into new locations and launching a consolidated private-label brand identity for pet essentials, it reported an operating margin of approximately 4.2% for the quarter ended May 3, 2026. Shopify (NASDAQ:SHOP) primarily generates revenue by providing software and related commercial services across multiple international regions, enabling global merchants to set up digital storefronts, manage physical inventory, process payments, and coordinate shipping logistics. It recently authorized an additional $3 billion for share repurchases and experienced intermittent service disruptions over the summer, while concurrently reporting an operating margin of approximately 17% for the quarter ended June 30, 2026. Revenue here refers to the standardized income-statement revenue line item. This is the most fundamental measure of a company's performance. It serves as a practical gauge of the total incoming money a business generates from its daily operations during a specific quarter before accounting for any subsequent operating costs or taxes. Data source: Company filings. Data as of Aug. 26, 2026. The relative performance of these companies' revenue largely reflects each company's addressable market. Chewy is seeing steady, but slower revenue growth in the $150 billion pet industry. However, Shopify serves the $6 trillion global e-commerce market, which is why it continues to grow revenue at higher rates. Chewy is investing to expand into other business lines, such as pet health and vet care, to maintain revenue growth. Meanwhile, Shopify has seen a slight acceleration in revenue over the last year, driven by increased shopping activity from people using AI to find products. It's unclear if Chewy will be able to meaningfully accelerate its revenue to regain the lead over Shopify in revenue size. Shopify seems to be racing ahead as it rides two major tailwinds: a growing e-commerce market and AI-driven commerce activity. The question for investors is how much growth is already priced into Shopify stock relative to Chewy's. The latter may offer better value, with the pet food retailer trading at a forward price-to-earnings ratio of about 15, while Shopify trades at much higher multiples. If Chewy can successfully expand margins through healthcare products and services, in addition to advertising, it could deliver market-beating returns. Before you buy stock in Chewy, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Chewy wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $440,710!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,335,252!* That performance is why people listen. With a track record of beating the S&P 500 by nearly 5x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 31, 2026. John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chewy and Shopify. The Motley Fool has a disclosure policy. Chewy vs. Shopify: Stable Patterns vs. Rapid Acceleration in Quarterly Revenue was originally published by The Motley Fool

Chewy (CHWY) is back in focus ahead of its fiscal second quarter earnings report on September 9, 2026, following a 2% daily gain and an increase of more than 15% over the past month. Chewy’s recent momentum, including an 18.36% 30-day share price return and a 16.52% 90-day share price return, comes against a weaker backdrop, with the year-to-date share price return down 26.28% and the 1-year total shareholder return down 39.41%. Seize this earnings momentum moment around Chewy to review a hand picked 49 high quality undervalued stocks that combine resilient cash flows with solid balance sheets. Chewy’s share price has rebounded after a weak year, yet the business still sits well below its past peaks and recent returns remain mixed. Does that reset leave enough potential upside to justify the risk now? Chewy's most followed narrative pegs fair value at $31.05, above the last close at $24.69, which frames the current debate around its earnings reset. Read the complete narrative. Read the complete narrative. Investors may want to understand what sits behind the vet care and membership initiatives. The fair value depends on specific growth paths for revenue, earnings, and future margins, as well as clarity on which assumptions would need to align for Chewy to reach that narrative target. Result: Fair Value of $31.05 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, Chewy still leans heavily on Autoship subscription revenue, and slower active customer growth could challenge the vet clinics and membership-driven upside in this narrative. Find out about the key risks to this Chewy narrative. The fair value narrative for Chewy suggests the stock trades at a discount to future cash flows, yet the current P/E of 39.6x tells a different story. That ratio is above the US Specialty Retail industry at 19.2x, peers at 20.6x, and the fair ratio of 24.3x. Does this premium point to valuation risk if expectations slip? For a closer look at how this pricing gap could close over time, including what a move toward the fair ratio might mean for returns, See what the numbers say about this price — find out in our valuation breakdown. Chewy's situation clearly divides opinions, with both risks and rewards on the table. Consider evaluating it while sentiment is in flux and test the data yourself through the 2 key rewards and 1 important warning sign. If you stop with Chewy, you risk missing other opportunities. Spend a few more minutes and line up a wider watchlist that matches your goals. Target potential value opportunities by scanning a curated 49 high quality undervalued stocks that already filters for strong fundamentals. Strengthen your focus on financial resilience by searching the list of solid balance sheet and fundamentals (51 results) to see which companies pass tighter balance sheet checks. Spot earlier stage opportunities by reviewing a hand picked 22 elite penny stocks with strong financials that already screens for stronger financial profiles. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include CHWY. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

PDD Holdings Inc. Sponsored ADR (PDD) came out with quarterly earnings of $2.85 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $3.08 per share a year ago. These figures are adjusted for non-recurring items. A quarter ago, it was expected that this company would post earnings of $2.23 per share when it actually produced earnings of $1.38, delivering a surprise of -38.12%. Over the last four quarters, the company has surpassed consensus EPS estimates just once. PDD Holdings Inc. Sponsored ADR, which belongs to the Zacks Internet - Commerce industry, posted revenues of $16.56 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 3.35%. This compares to year-ago revenues of $14.52 billion. The company has not been able to beat consensus revenue estimates over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. PDD Holdings Inc. Sponsored ADR shares have lost about 22.1% since the beginning of the year versus the S&P 500's gain of 12.1%. While PDD Holdings Inc. Sponsored ADR has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for PDD Holdings Inc. Sponsored ADR was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.67 on $17.82 billion in revenues for the coming quarter and $10.37 on $70.74 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Commerce is currently in the bottom 39% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Chewy (CHWY), another stock in the same industry, has yet to report results for the quarter ended July 2026. The results are expected to be released on September 9. This online pet store is expected to post quarterly earnings of $0.36 per share in its upcoming report, which represents a year-over-year change of +9.1%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Chewy's revenues are expected to be $3.32 billion, up 6.8% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report PDD Holdings Inc. Sponsored ADR (PDD) : Free Stock Analysis Report Chewy (CHWY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

PLANTATION, Fla., August 19, 2026--(BUSINESS WIRE)--Chewy, Inc. (NYSE: CHWY) ("Chewy"), a trusted destination for pet parents and partners everywhere, announced today that it will report fiscal second quarter 2026 financial results before the market opens on Wednesday, September 9, 2026. Management will host a conference call and webcast to discuss the company's financial results at 8:00 am ET. To access the conference call by phone, please visit this link for registration (Phone Registration Link) to be provided with dial in details, including a unique PIN to access the conference call. To avoid delays, we encourage participants to register in advance or at a minimum 15 minutes before the start of the call. A live audio webcast can be accessed on the company’s investor relations website at https://investor.chewy.com and a replay of the conference call will also be available on the company’s investor relations website for at least 90 days following the event. Chewy Fiscal Second Quarter 2026 Financial Results Conference CallWhen: Wednesday, September 9, 2026Time: 8:00 am ETLive webcast and replay: https://investor.chewy.com Conference call registration: Phone Registration Link About Chewy Our mission is to be the most trusted and convenient destination for pet parents and partners everywhere. We believe that we are the preeminent online source for pet products, supplies and prescriptions as a result of our broad selection of high-quality products and services, which we offer at competitive prices and deliver with an exceptional level of care and a personal touch to build brand loyalty and drive repeat purchasing. We seek to continually develop innovative ways for our customers to engage with us, as our websites and mobile applications allow our pet parents to manage their pets’ health, wellness, and merchandise needs, while enabling them to conveniently shop for our products. We partner with approximately 4,000 of the best and most trusted brands in the pet industry, and we create and offer our own private brands. Through our websites and mobile applications, we offer our customers approximately 190,000 products and services offerings, to bring what we believe is a high-bar, customer-centric experience to our customers. View source version on businesswire.com: https://www.businesswire.com/news/home/20260819903749/en/ Contacts Investor Contact: [email protected] Media Contact: Diane [email protected]

Recently, Chewy’s upcoming earnings report and revised analyst estimates drew heightened investor attention, with forecasts pointing to higher earnings per share and revenue than a year earlier. An interesting tension has emerged as Chewy’s improving earnings outlook coincides with a Zacks Rank of #5 (Strong Sell), highlighting mixed sentiment around its near-term prospects. We’ll now explore how this mix of cautious analyst sentiment and expectations for higher earnings could influence Chewy’s broader investment narrative. Explore 26 top quantum computing companies leading the revolution in next-gen technology and shaping the future with breakthroughs in quantum algorithms, superconducting qubits, and cutting-edge research. To own Chewy, you need to believe its pet-focused e-commerce model, Autoship subscriptions, and newer services like vet care and ads can support durable profitability despite modest active-customer growth. The recent earnings buzz, with expectations for higher EPS and revenue, does not materially change the key near term catalyst, which is execution on customer and margin growth, or the main risk around heavy reliance on Autoship and subscription-like behavior. Against this backdrop, Chewy’s Zacks Rank of #5 (Strong Sell) stands out as the most relevant signal from recent news. It reflects downward earnings estimate revisions even as forecasts still point to year over year EPS growth, underscoring how fragile sentiment can be around margins, customer acquisition costs, and competition at a time when Chewy is also investing in areas like Chewy Vet Care and its first party ad platform. But while expectations for rising EPS are encouraging, investors should also be aware that... Read the full narrative on Chewy (it's free!) Chewy's narrative projects $15.7 billion revenue and $569.8 million earnings by 2029. This requires 6.8% yearly revenue growth and a $314.6 million earnings increase from $255.2 million today. Uncover how Chewy's forecasts yield a $31.05 fair value, a 48% upside to its current price. Some of the most optimistic analysts were modeling earnings of about US$683.7 million by 2029, yet rising acquisition costs and competition could push that story in a very different direction. Explore 4 other fair value estimates on Chewy - why the stock might be worth over 2x more than the current price! Don't just follow the ticker - dig into the data and build a conviction that's truly your own. A great starting point for your Chewy research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision. Our free Chewy research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Chewy's overall financial health at a glance. Markets shift fast. These stocks won't stay hidden for long. Get the list while it matters: Invest in the nuclear renaissance through our list of 90 elite nuclear energy infrastructure plays powering the global AI revolution. We've uncovered the 8 dividend fortresses yielding 5%+ that don't just survive market storms, but thrive in them. Find 47 companies with promising cash flow potential yet trading below their fair value. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include CHWY. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

It has been about a month since the last earnings report for Chewy (CHWY). Shares have added about 10.1% in that time frame, outperforming the S&P 500. But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Chewy due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for Chewy before we dive into how investors and analysts have reacted as of late. Chewy reported solid first-quarter fiscal 2026 results, wherein the top line beat the Zacks Consensus Estimate, and the bottom line met the same. Both metrics showed year-over-year growth.Chewy noted that while the overall pet category remains resilient, the consumer environment has become more challenging since the company established its initial fiscal 2026 outlook. In response to these evolving conditions, management is updating its full-year sales outlook to reflect softer consumer trends and more conservative internal assumptions. Chewy posted adjusted earnings of 43 cents per share, which came in line with the Zacks Consensus Estimate. The figure increased from 35 cents in the prior-year period.The company reported net sales of $3,357.2 million, surpassing the Zacks Consensus Estimate of $3,352 million. The figure increased 7.7% from $3,116 million posted in the year-ago period.The Autoship subscription program remained a cornerstone of Chewy’s model. Autoship customer sales grew 10.5% year over year to $2,832.6 million from $2,562.7 million, outpacing overall net sales growth. The metric represented 84.4% of total net sales.The company ended the quarter with 21.5 million active customers, increasing 3.6% year over year. Chewy’s net sales per active customer reached $597. The metric reflects a 2.4% year-over-year increase from $583. Chewy’s gross profit increased 3.6% year over year to $1,011.4 million from $923.8 million. The gross margin expanded by 50 basis points (bps) year over year to 30.1%, driven primarily by continued growth in sponsored ads, favorable category mix and operating discipline.Adjusted SG&A expenses reached $593 million in the fiscal first quarter. As a percentage of net sales, this metric declined 90 basis points year over year to 17.7%, due to lower variable costs from productivity improvements and AI-led efficiencies.Advertising and marketing expenses for the fiscal first quarter were $206.1 million compared with $193.8 million in the prior-year period. As a percentage of sales, advertising and marketing expenses were 6.1%.The adjusted EBITDA increased 31.3% year over year to $253.1 million from $192.7 million. The adjusted EBITDA margin increased 130 bps year over year to 7.5% from 6.2%, driven by adjusted EBITDA flow-through of greater than 25%. This level of profitability expansion reflects the structural strengthening of Chewy's earnings model. CHWY ended the quarter with approximately $485.2 million in cash, cash equivalents and $34.9 million in marketable securities. Total shareholders’ equity stood at $424.2 million.The company generated net cash provided by operating activities of $108.5 million and free cash flow of $70.8 million for the quarter, up 45.4% from the prior-year period. Capital expenditures were $37.7 million, consistent with ongoing investment needs across the network.Capital allocation remained active. The company repurchased $200 million of common stock during the quarter, reflecting continued emphasis on returning cash to shareholders alongside strategic investments. Chewy revised its full-year fiscal 2026 net sales outlook, with expectations between $13.4 billion and $13.55 billion compared with the previous guidance range of $13.6 billion to $13.75 billion. The updated outlook includes expected net sales contributions of approximately $80 million from SmartPak and approximately $70 million from Modern Animal during fiscal 2026.Adjusted EBITDA margin is expected to be in the range of 6.6-6.8%, roughly a 100 bps year-over-year increase at the midpoint. This outlook reflects a more conservative view of consumer spending patterns and category growth assumptions. Management emphasized that the change was tied to slower expected net sales per active customer expansion, driven by weaker discretionary attachment and premiumization.For the second quarter of fiscal 2026, the company expects net sales in the range of $3.3-$3.33 billion, reflecting 6-7% year-over-year growth. The outlook assumes a generally stable operating environment and consumer trends compared with the end of the first quarter. The company continues to see healthy customer engagement, strength in Autoship and ongoing market share gains. However, near-term pressure remains on discretionary attachment and premiumization behavior. Management is also introducing quarterly adjusted EBITDA margin guidance to provide greater transparency amid varying profitability drivers.Chewy expects second-quarter adjusted EBITDA margin to be between 6.3% and 6.4%, representing approximately 50 basis points of year-over-year expansion at the midpoint. Profitability is expected to face pressure from tougher gross margin comparisons due to prior-year non-recurring MAP pricing benefits and elevated fuel surcharge costs. However, ongoing SG&A discipline and operational efficiency improvements are expected to support margin performance during the quarter. Since the earnings release, investors have witnessed a downward trend in fresh estimates. The consensus estimate has shifted -18.29% due to these changes. Currently, Chewy has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a score of C on the value side, putting it in the middle 20% for this investment strategy. Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Chewy has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months. Chewy is part of the Zacks Internet - Commerce industry. Over the past month, PetMed (PETS), a stock from the same industry, has gained 6.5%. The company reported its results for the quarter ended March 2026 more than a month ago. PetMed reported revenues of $42.82 million in the last reported quarter, representing a year-over-year change of -7.9%. EPS of -$0.19 for the same period compares with -$0.56 a year ago. PetMed is expected to post earnings of $0.12 per share for the current quarter, representing a year-over-year change of +135.3%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged. The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for PetMed. Also, the stock has a VGM Score of B. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Chewy (CHWY) : Free Stock Analysis Report PetMed Express, Inc. (PETS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Looking back on online retail stocks’ Q1 earnings, we examine this quarter’s best and worst performers, including Chewy (NYSE:CHWY) and its peers. Consumers ever rising demand for convenience, selection, and speed are secular engines underpinning ecommerce adoption. For years prior to Covid, ecommerce penetration as a percentage of overall retail would grow 1-2% annually, but in 2020 adoption accelerated by 5%, reaching 25%, as increased emphasis on convenience drove consumers to structurally buy more online. The surge in buying caused many online retailers to rapidly grow their logistics infrastructures, preparing them for further growth in the years ahead as consumer shopping habits continue to shift online. The 6 online retail stocks we track reported a very strong Q1. As a group, revenues beat analysts’ consensus estimates by 2.3% while next quarter’s revenue guidance was 4% above. While some online retail stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.7% since the latest earnings results. Founded by Ryan Cohen, who later became known for his involvement in GameStop, Chewy (NYSE:CHWY) is an online retailer specializing in pet food, supplies, and healthcare services. Chewy reported revenues of $3.36 billion, up 7.7% year on year. This print was in line with analysts’ expectations, and overall, it was a strong quarter for the company with an impressive beat of analysts’ EBITDA estimates. Interestingly, the stock is up 1.3% since reporting and currently trades at $20.67. Is now the time to buy Chewy? Access our full analysis of the earnings results here, it’s free. Founded by Jeff Bezos after quitting his stock-picking job at D.E. Shaw, Amazon (NASDAQ:AMZN) is the world’s largest online retailer and provider of cloud computing services. Amazon reported revenues of $181.5 billion, up 16.6% year on year, outperforming analysts’ expectations by 2.4%. The business had a stunning quarter with an impressive beat of analysts’ EPS estimates and revenue guidance for next quarter exceeding analysts’ expectations. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 6.8% since reporting. It currently trades at $245.13. Is now the time to buy Amazon? Access our full analysis of the earnings results here, it’s free. Founded in 2010 by Harvard Business School student Bom Kim, Coupang (NYSE:CPNG) is an e-commerce giant often referred to as the "Amazon of South Korea". Coupang reported revenues of $8.50 billion, up 7.5% year on year, falling short of analysts’ expectations by 0.6%. Still, it was a satisfactory quarter as it posted an impressive beat of analysts’ EBITDA estimates. Coupang delivered the weakest performance against analyst estimates in the group. The company reported 23.9 million active buyers, up 2.1% year on year. As expected, the stock is down 11.1% since the results and currently trades at $18.46. Read our full analysis of Coupang’s results here. Founded in 2002 by Niraj Shah, Wayfair (NYSE:W) is a leading online retailer of mass-market home goods in the US, UK, Canada, and Germany. Wayfair reported revenues of $2.93 billion, up 7.4% year on year. This print topped analysts’ expectations by 1.4%. Overall, it was a strong quarter as it also logged a solid beat of analysts’ EBITDA estimates. Wayfair had the slowest revenue growth among its peers. The company reported 21.4 million active buyers, up 1.4% year on year. The stock is up 25.3% since reporting and currently trades at $91.83. Read our full, actionable report on Wayfair here, it’s free. Launched in 2003 by software engineers Michael Mente and Mike Karanikolas, Revolve (NYSE:RVLV) is a fashion retailer leveraging social media and a community of fashion influencers to drive its merchandising strategy. Revolve reported revenues of $342.9 million, up 15.6% year on year. This result surpassed analysts’ expectations by 4.2%. Overall, it was a strong quarter as it also produced a narrow beat of analysts’ EBITDA estimates and solid growth in its buyers. The company reported 2.93 million active buyers, up 8.3% year on year. The stock is down 3.9% since reporting and currently trades at $22.53. Read our full, actionable report on Revolve here, it’s free. Late in 2025 into early 2026, there was hand-wringing around artificial intelligence. For software companies, the fear was that AI would erode pricing power and compress margins as new tools made it easier to replicate what once required expensive enterprise platforms. Crypto investors had their own version of the same anxiety: if AI agents could trade, allocate capital, and manage wallets autonomously, what exactly was the long-term value of today’s crypto infrastructure? These concerns triggered a noticeable rotation away from these sectors and into safer havens. But markets rarely dwell on one narrative for long. Spring 2026 came, and the focus shifted abruptly from technological disruption to geopolitical risk. The US’ conflict with Iran became the dominant driver of market psychology, and when geopolitics takes center stage, the script changes quickly. Investors stop debating growth rates and start worrying about oil supply, inflation, and global stability. Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

Get insights on thousands of stocks from the global community of over 7 million individual investors at Simply Wall St. Chewy stock is coming off a difficult stretch, with the share price significantly below its level of five years ago, while the current valuation checks still lean on the expensive side rather than flagging a clear bargain. Over the last five years, Chewy has delivered a cumulative decline of about 74.8%, which means long term holders have seen substantial value eroded. Recent enthusiasm around AI and automation initiatives can support expectations for better efficiency and growth, but mixed sentiment and insider selling leave a risk that the market is still cautious on how durable those benefits will be. Chewy scores 2 out of 6 on broader valuation checks, which points to a stock that currently looks more expensive than cheap on these measures. The issue now is whether the recent optimism around Chewy is enough to justify its valuation after such a weak longer term share price record. Find out why Chewy's -48.1% return over the last year is lagging behind its peers. The P/E ratio is a useful way to think about what you are paying today for each dollar of Chewy’s earnings. On this measure, Chewy trades on a P/E of 34.2x, which is well above the Specialty Retail industry average of 19.4x and also higher than the peer group average of 14.8x. The fair P/E for Chewy, based on a model that considers its growth profile, margins, size and risk, is estimated at 23.1x. The current multiple sits clearly above that mark. Despite recent optimism around Chewy’s AI and automation announcements lifting interest in the stock, the present valuation suggests investors are already paying a premium compared with both sector norms and what the tailored fair multiple implies. On the P/E multiple, Chewy stock currently screens as overvalued relative to its own fair ratio and broader industry benchmarks. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives picks up where Chewy's valuation puzzle leaves off by spelling out which combinations of future growth, margins and earnings would need to hold for the stock to be worth materially more or less than today's market price, and by turning each view of Chewy's fair value into a thesis about the business that you can revisit over time as new information comes through on the Community page. One of the top community narratives on Chewy: 31% undervalued Read one of the top narratives on Chewy Do you think there's more to the story for Chewy? Head over to our Community to see what others are saying! Chewy stock currently sits on a market multiple that screens as overvalued, with investors paying a clear premium to sector norms and a tailored fair P/E ratio. That premium only makes sense if you think Chewy can convert its AI and automation efforts into sustained earnings power that the wider market is not already pricing in. The crux from here is whether those efficiency gains and any future margin improvements are strong and consistent enough to justify the higher multiple, or whether sentiment has moved ahead of what the business is likely to deliver. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include CHWY. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Chewy’s fourth quarter results were met positively by the market, reflecting steady execution in a challenging environment for pet retail. Management credited robust recurring revenue from its Autoship program, which now accounts for over 80% of net sales, and emphasized gains in operational efficiency. CEO Sumit Singh highlighted a continued focus on premium product mix and disciplined expense management, stating, “We are delivering share gains, expanding margins through structural efficiencies and generating growing free cash flow.” The company also noted that customer net additions remained healthy, driven by new initiatives in health and private brands. Notably, net sales for Q4 grew 8.1% year over year on a comparable 52-week basis. Is now the time to buy CHWY? Find out in our full research report (it’s free). Revenue: $3.36 billion vs analyst estimates of $3.35 billion (7.7% year-on-year growth, in line) Adjusted EPS: $0.43 vs analyst estimates of $0.43 (in line) Adjusted EBITDA: $253.1 million vs analyst estimates of $240.1 million (7.5% margin, 5.4% beat) Operating Margin: 3.8%, up from 2.5% in the same quarter last year Market Capitalization: $7.69 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Mark Stephen Mahaney (Evercore ISI) asked about the sustainability of marketing leverage and the impact of the Chewy Made strategy. CEO Sumit Singh emphasized ongoing marketing efficiency and noted that private brands should drive both margin and customer spend per order. Eric Sheridan (Goldman Sachs) questioned the scale of AI-driven cost savings and how they would be balanced between profit growth and reinvestment. Singh explained that AI is already reducing customer service costs and that future savings would support both higher margins and reinvestment. Douglas Anmuth (JPMorgan) inquired about the impact of Agentic Commerce and the resilience of Chewy’s Autoship model. Singh stated that Chewy’s service-rich, recurring model is well-insulated from industry disruption and is positioned to benefit from new distribution channels. David Bellinger (Mizuho) asked for detail on quarterly revenue ramp and margin expansion drivers. CFO Chris Deppe said growth would be broad-based with no reliance on a single factor, and that margin gains are rooted in structural business improvements rather than one-time items. Anna Andreeva (Piper Sandler) pressed for expectations around the SmartEquine acquisition and gross margin trajectory. Singh and Deppe said 2026 will focus on stabilizing the acquired business and that gross margin gains will increasingly come from mix and operational leverage. In the next few quarters, our analyst team will watch (1) the ramp and customer adoption of the Chewy Made private brand platform, (2) the measurable impact of AI-driven cost savings on operating margins, and (3) the continued growth and profitability of Chewy Vet Care. Progress in integrating the SmartEquine acquisition and expansion in health services will also be important signposts. Chewy currently trades at $18.95, down from $20.40 just before the earnings. Is there an opportunity in the stock?See for yourself in our full research report (it’s free for active Edge members). ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies. Our AI system flagged Palantir before it ran 1,662%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.