Chewy Analysts Lower Forecasts Despite Q2 Results Beating Expectations

Chewy Inc. reported Q2 2025 adjusted earnings of 33 cents per share, beating the consensus of 14 cents and the management guidance of 30-35 cents. Sales of $3.10 billion, up 8.6% YoY, also exceeded expectations. The company raised its fiscal 2025 sales guidance from $12.3 billion-$12.45 billion to $12.5 billion-$12.6 billion. Analysts have slashed their forecasts following the Q2 results, with Barclays lowering its price target from $50 to $47 and Baird lowering its target from $52 to $48.

Chewy Inc. (CHWY) reported its Q2 2025 earnings, showcasing steady growth in revenue and earnings per share (EPS). The pet e-commerce giant achieved an EPS of $0.33, surpassing analyst expectations and management guidance of 30-35 cents. Revenue of $3.1 billion, up 8.6% year-over-year (YoY), also exceeded forecasts, reaching $3.08 billion Earnings call transcript: Chewy Q2 2025 sees steady growth, stock dips^[1].

Despite meeting earnings expectations, Chewy's stock fell 9.67% in premarket trading, closing at $38.03. This decline was likely driven by investor concerns over future guidance and market conditions, as the stock's 52-week high was $48.62 Earnings call transcript: Chewy Q2 2025 sees steady growth, stock dips^[1].

The company raised its full-year net sales guidance to $12.5-$12.6 billion, signaling confidence in sustained growth. This revision reflects Chewy's strong performance in the quarter, with key drivers including a 15% growth in Autoship customer sales and a 15% increase in Hardgoods business revenue. Additionally, the Chewy Plus membership program exceeded expectations, contributing to the company's success Earnings call transcript: Chewy Q2 2025 sees steady growth, stock dips^[1].

Chewy's gross margin reached 30.4%, up 90 basis points YoY, and adjusted EBITDA was $183.3 million, representing a 5.9% margin. The company also generated $106 million in free cash flow, enabling it to invest in strategic growth initiatives and share repurchases Earnings call transcript: Chewy Q2 2025 sees steady growth, stock dips^[1].

Analysts have revised their price targets following the Q2 results. Barclays lowered its price target from $50 to $47, while Baird reduced its target from $52 to $48 Earnings call transcript: Chewy Q2 2025 sees steady growth, stock dips^[1].

For deeper insights into Chewy’s valuation metrics and growth potential, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 US stocks with expert analysis and actionable intelligence Earnings call transcript: Chewy Q2 2025 sees steady growth, stock dips^[1].

Earnings call transcript: Chewy Q2 2025 sees steady growth, stock dips^[1]: Chewy Inc. (CHWY) Q2 2025 Earnings Call Transcript, Investing.com, September 10, 2025.