revenue
13.46–13.57 $billion
FY 2026
official guidance
CHEWY, INC.
Last · —$20.83+1.12 (+5.68%)live · yahoo · 3h ago
Market cap$8.70B—
P/E · TTM31.4fwd — · eps —
Beta—vs S&P 500
Div yield—annual · TTM
52w range
——
Volume—session
| Revenue | $13.1B |
|---|---|
| Operating income | $328.2M |
| Net income | $273.7M |
| Free cash flow | $568.1M |
| Operating margin | 2.5% |
| Net margin | 2.1% |
| Return on equity | 73.9% |
| Period | TTM 2026-08-02 |
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OpenFilings analyst
Our analyst
Agentic read of the latest earnings call — recommendation updates when we process a new transcript. Research synthesis, not investment advice.
Strong BuyBuyHoldSellStrong Sell
Strong execution and recurring revenue are offset by modest organic growth, macro pressure, and nonrecurring Q2 margin benefits.
Hold: Chewy delivered solid execution, with Q2 sales up 7.3% to $3.33 billion, organic sales up 5.7%, active customers up 3.8%, Autoship up 9.3%, and adjusted EBITDA margin of 6.8%.
However, nearly all EBITDA upside versus expectations came from timing and discrete benefits, while FY2026 organic growth guidance remains only 5.5%-6.3% amid weak discretionary demand and no assumed consumer recovery. The call supports durable share gains and margin expansion, but not yet a clean reacceleration thesis.
Themes
- Autoship
- Organic Growth
- Chewy Health
- Modern Animal
- Ai Productivity
- Consumer Pressure
Near term
Q3 margin is guided to 6.6%-6.7%, with gross margin expected to decline sequentially as tariff refunds, rebates, and other Q2 benefits normalize.
Second-half advertising will increase, weighted toward Q3, creating a near-term test of customer acquisition returns and operating leverage.
Treats and other discretionary consumables remain pressured, while fuel costs are expected to create a mid-single-digit-million-dollar headwind through year-end.
The redesigned Chewy Plus program and additional product launches could improve attachment and growth, but management has not quantified adoption or financial impact.
Modern Animal and SmartPak are ahead of expectations, but Modern Animal is still a modest EBITDA margin drag and its customer conversion remains unquantified.
Longer term
Autoship represents 84.6% of sales and grew faster than the company, supporting revenue durability and retention through a soft consumer environment.
Chewy Health, including Chewy Vet Care and Modern Animal, could expand wallet share and improve mix; Vet Care continues to post triple-digit revenue growth, but the acquired platform still needs to prove scalable economics.
Automation and AI-enabled productivity are credible structural levers: more than 50% of shipping volume runs through automated fulfillment centers, supporting continued SG&A leverage.
AI could reduce cost to serve, but management explicitly cautioned that savings may offset wage and operating inflation or be reinvested rather than flow directly to EBITDA.
Competitive positioning remains favorable in online pet retail, with management claiming 2x-3x category outperformance, but analyst questioning exposed limited disclosure on discretionary category mix and the magnitude of AI-driven demand or cost benefits.
Red flags
Q2 adjusted EBITDA outperformance was essentially attributable to timing-related and discrete benefits, including approximately $10 million of tariff and rebate timing benefits and more than $5 million of other discrete items.
Management declined to quantify treats penetration or the discretionary portion of consumables, limiting visibility into the severity and duration of the category slowdown.
The FY2026 outlook assumes no consumer recovery and only narrows the downside case; the high end still requires better market conditions, stronger execution, or both.
Management expressed high confidence in AI savings of low-tens of millions in FY2026 and approximately $50 million annualized in FY2027, but Kai is exposed to less than 10%-15% of traffic and inference costs may constrain scaling.
The stated long-term 10%-plus EBITDA margin ambition remains unsupported by a dated roadmap, while management has not yet determined 2027 reinvestment levels.
Forward outlook
revenue growth
6.8–7.7 pct
FY 2026
official guidance
revenue growth
5.5–6.3 pct
FY 2026
official guidance
ebitda
6.7–6.8 pct
FY 2026
official guidance
revenue
3.323–3.358 $billion
Q3 2026
official guidance
revenue growth
6.6–7.7 pct
Q3 2026
official guidance
ebitda
6.6–6.7 pct
Q3 2026
official guidance
adjusted eps
0.39 $per share
Q3 2026
official guidance
OpenFilings analyst view from primary-source filings and earnings calls — not investment advice.
From latest 10-K · 2026-03-25
- Earnings Decline
- Autoship Retention
- Liquidity
- Controlled Company
- Dual Class Shares
- Lease Commitments
- Share Repurchases
Red flags
- FY2025 earnings attributable to common stockholders fell to $222.8 million from $392.7 million; diluted EPS declined to $0.52 from $0.91, while the excerpts do not show the operating drivers.
- The company remains a controlled company, with Class B shares carrying 10 votes per share versus one vote for Class A shares; BC Partners and affiliated sponsors retain meaningful governance and potential conflict-of-interest influence.
- Operating lease liabilities totaled $556.8 million at February 1, 2026, with $837.9 million of undiscounted lease payments and $19.5 million of additional future commitments for leases not yet commenced.
- Chewy repurchased $500 million of stock from a sponsor affiliate at $28.49 per share and conducted a further $300 million concurrent repurchase, creating capital-allocation and related-party concentration risk.
Upcoming earnings
1:30 PM UTC+1
Period
Oct 2026
Est. EPS
$0.38
Est. revenue
3.3B