Dear Chewy Stock Fans, Mark Your Calendars for September 9

Dear Chewy Stock Fans, Mark Your Calendars for September 9

Subhasree Kar

Wed, September 9, 2026 at 4:58 PM GMT+3 4 min read

• CHWY +1.59%

Chewy (CHWY) investors have a key date to watch as the online pet retailer prepares to report its second-quarter fiscal 2026 financial results on Wednesday, Sept. 9. Wall Street will be closely monitoring the report for signs that Chewy can maintain steady sales growth and customer engagement while continuing to expand profitability, particularly as a more cautious consumer environment weighs on discretionary pet spending and premiumization.

The upcoming report will also give investors a fresh look at the strength of Chewy's Autoship subscription business, customer additions, net sales per active customer, and the company's ability to gain market share despite softer consumer spending. Plus, updates on its recently acquired Modern Animal business, Chewy Health, and AI-enabled productivity initiatives could also provide important clues about the company's longer-term growth and margin potential.

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About Chewy Stock

Chewy is a Plantation, Florida-based e-commerce company focused on pet food, treats, supplies, medications, and other pet-health products and services. The company operates through its website and mobile applications and has built a highly recurring business around its Autoship subscription program. Chewy has a market cap of around $9.5 billion.

CHWY has faced a difficult trading environment in 2026, with the stock falling 29.6% year-to-date (YTD). The stock has also declined about 44.9% from its 52-week high of $42.24. The stock is down 44.1% over the past year.

Notably, CHWY has remained under pressure following management's decision to lower its fiscal 2026 revenue outlook in June. Although first-quarter results exceeded expectations, investors focused on the company's more cautious assessment of consumer spending, particularly weaker discretionary attachment and premiumization trends.

However, Chewy's underlying business continues to demonstrate improving profitability, strong Autoship engagement, and healthy cash generation. The company added nearly 200,000 customers in the first quarter, while Autoship sales increased 10.5% from the year-ago quarter and accounted for 84.4% of total sales.

Consequently, the upcoming earnings report will be closely watched to determine whether Chewy can stabilize its sales trajectory while preserving its improving margin profile.

Despite the price decline, Chewy trades at roughly 29.71x forward earnings, which is a premium to industry peers. Though its price-to-sales ratio of 0.77 is at a discount to the sector median.

Stable Profitability and Autoship Growth

Chewy reported its first-quarter fiscal 2026 financial results on Jun. 10 for the quarter ended May 3. Net sales increased 7.7% year-over-year (YoY) to $3.4 billion, while gross margin expanded 50 basis points to 30.1%. Net income rose 51.9% YoY to $94.8 million.

The bottom line showed meaningful improvement. Its adjusted EPS increased to $0.43 from $0.35, ahead of expectations, while adjusted EBITDA climbed 31.3% YoY to $253.1 million. The adjusted EBITDA margin expanded to 7.5%, up from 6.2% a year earlier.

Customer engagement remained another positive. Chewy ended the quarter with 21.5 million active customers, up 3.6% YoY, while net sales per active customer increased 2.4% to $597. Autoship customer sales rose 10.5% YoY to $2.8 billion and represented 84.4% of total sales, highlighting the recurring nature of Chewy's business model.

Cash generation also improved. Chewy generated $108.5 million in operating cash flow and $70.8 million in free cash flow, up 25.6% and 45.4% YoY, respectively.

For the second quarter of fiscal 2026, Chewy expects net sales of approximately $3.30 billion to $3.33 billion. Management also expects adjusted EPS of about $0.36.

However, for the full fiscal year, Chewy reduced its net sales outlook to $13.40 billion to $13.55 billion. The outlook reflects a more challenging consumer environment, with management citing pressure on discretionary behavior.

In addition, analysts expect EPS of $0.80 for fiscal 2026, representing about 48.1% YoY growth, while fiscal 2027 earnings are expected to grow 36.3% to $1.09. For the soon-to-be-reported second quarter, the consensus estimate calls for EPS of $0.18, up about 28.6% from the prior-year period.

What Do Analysts Expect for CHWY Stock?

Analyst sentiment toward CHWY remains fairly positive despite the stock's steep decline. On Sept. 4, Raymond James maintained an "Outperform" rating and raised its price target to $28 from $25, signaling greater confidence in the stock's risk-reward profile following its substantial pullback.

Furthermore, Mizuho maintained an "Outperform" rating but slashed its price target to $32 from $40, citing concerns about Chewy's growth outlook.

Overall, CHWY stock has a consensus "Moderate Buy" rating. Out of 28 analysts covering the stock, 18 recommend a "Strong Buy," two suggest a "Moderate Buy," and eight analysts stay cautious with a "Hold" rating.

CHWY's average analyst price target of $30.64 reflects an upside of 31.7%, while the Street-high target price of $54 suggests 132.1% upside ahead.

On the date of publication, Subhasree Kar did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com