Chewy has been upgraded to a strong buy due to expected improvements in profitability driven by AI initiatives, which are projected to increase its adjusted EBITDA margin by 100 basis points to 6.7%. The company plans to accelerate growth through private-label pet food and market share gains rather than price hikes. Its 2026 earnings guidance suggests an EPS of $1.96 and a potential 33% upside to $35.36 per share, exceeding current Wall Street estimates. This new growth outlook marks a positive shift for Chewy's future performance.
Chewy reported a 7.7% year-over-year net sales increase in Q1, generating $71 million in free cash flow and achieving record profitability. The company added nearly 200,000 net customers despite facing consumer headwinds. While Chewy's guidance antic...
Chewy's stock was upgraded from Hold to Buy following a 40% decline and compressed earnings multiples. Despite some earnings estimate misses, Chewy has shown consistent revenue and profit growth. The pet products market remains strong, supporting con...
