CHWY
The leash got tugged both ways
Chewy came in with Q2 adjusted earnings of 36 cents a share, right on the money, but sales of $3.33 billion landed just under Wall Street’s $3.361 billion target. That’s not exactly a face-plant, but it’s enough to make investors squint at the transcript.
The part Wall Street actually cares about
Here’s the twist: Chewy raised its fiscal 2026 sales outlook to $13.46 billion-$13.57 billion, up from $13.4 billion-$13.55 billion, and nudged its adjusted EBITDA margin forecast higher too. In other words, management is saying the business still has enough juice to keep growing and squeeze out a bit more profitability.
Analysts did the post-earnings shuffle
The Street responded the way it usually does after earnings: by moving the goalposts.
- Evercore ISI downgraded Chewy from Outperform to In-Line and set a $25 target.
- Baird kept an Outperform rating but trimmed its target to $28 from $30.
- Rosenblatt stayed Neutral and cut its target to $24 from $25.
Chewy shares slipped 1.5% to $20.44 in premarket trading, which tells you investors are focused less on the earnings tie and more on whether that raised outlook can actually hold up.
Big picture: Chewy isn’t booming, but it’s still doing the most important thing a growth stock can do — convincing Wall Street the story isn’t over yet.