Chewy Reports Q4 Sales Above Forecasts

Chewy (CHWY) exceeded management's sales forecast in its latest quarter, boosting investor confidence. The stock has seen a surge in value, with afternoon prices on Sept. 21, 2025, contributing to the positive sentiment. The company's performance suggests strong demand for its products and services, which bodes well for future growth.

Chewy, Inc. (CHWY) reported strong second-quarter 2025 earnings, surpassing management's sales forecast and boosting investor confidence. The company's net sales grew by nearly 9% year over year to $3.1 billion, exceeding the high end of its guidance range Chewy Autoship Sales Up 15% in Q2: Have Investors Missed the Catalyst?^[1]. This performance was driven by the exceptional momentum of its Autoship subscription program, which accounted for 83% of total net sales and grew by 15% year over year to $2.58 billion Chewy Autoship Sales Up 15% in Q2: Have Investors Missed the Catalyst?^[1].

The company's Autoship program not only enhanced demand forecasting and inventory placement but also contributed to a gross margin expansion of 90 basis points year over year to 30.4% Chewy Autoship Sales Up 15% in Q2: Have Investors Missed the Catalyst?^[1]. This operational efficiency supports both revenue growth and cost efficiency as Chewy scales.

Chewy's shares have seen a significant surge in value, with afternoon prices on September 21, 2025, contributing to the positive sentiment. The stock has outperformed key peers such as Central Garden & Pet Company (CENT), Petco Health and Wellness Company (WOOF), and Spectrum Brands Holdings (SPB) Chewy Autoship Sales Up 15% in Q2: Have Investors Missed the Catalyst?^[1].

Following the earnings announcement, several analysts revised their price targets for Chewy. Barclays analyst Trevor Young maintained a "Overweight" rating but lowered the price target from $50 to $47. Similarly, Baird analyst Justin Kleber, RBC Capital analyst Steven Shemesh, Morgan Stanley analyst Lauren Schenk, TD Cowen analyst Bill Kerr, JP Morgan analyst Doug Anmuth, Citigroup analyst Steven Zaccone, and UBS analyst Michael Lasser all revised their price targets downward Chewy Analysts Slash Their Forecasts Following Q2 Results^[2].

Chewy's performance suggests strong demand for its products and services, which bodes well for future growth. The company expects third-quarter adjusted earnings of 28-33 cents per share and sales of $3.07 billion-$3.1 billion, compared to the consensus estimates of 23 cents and $3.05 billion, respectively Chewy Analysts Slash Their Forecasts Following Q2 Results^[2]. Additionally, Chewy raised its fiscal 2025 sales guidance from $12.3 billion-$12.45 billion to $12.5 billion-$12.6 billion, with an adjusted EBITDA margin expected to be 5.4%-5.7% Chewy Analysts Slash Their Forecasts Following Q2 Results^[2].

The company's Autoship program, which now accounts for about 20.9 million active customers, provides a more stable and recurring revenue foundation heading into the second half of fiscal 2025 Chewy Autoship Sales Up 15% in Q2: Have Investors Missed the Catalyst?^[1]. Chewy Plus membership adoption has also contributed to higher customer spend and Autoship enrollment, further boosting customer engagement and frequency Chewy Autoship Sales Up 15% in Q2: Have Investors Missed the Catalyst?^[1].

Chewy's strong performance in the second quarter has set a positive tone for the remainder of the fiscal year. Investors should closely monitor the company's upcoming third-quarter earnings report, scheduled for December 3, 2025 Chewy Q2 2026 Earnings Report^[3].