Chewy, Inc. (NYSE: CHWY) heads into its next earnings release with improving analyst sentiment, stable revenue growth, and a share price that continues to recover from earlier-year volatility. The pet-focused e-commerce retailer has shown consistent performance throughout FY25, and investors are now looking closely at its profitability trajectory heading into 2026.

Company Overview

Chewy operates one of the largest online marketplaces for pet food, supplies, medications, and wellness services in the United States. Founded on a subscription-based, high-retention model, the company has built a loyal customer base through AutoShip recurring orders, fast delivery, and competitive pricing. Its expansion into pet healthcare—including pharmacy, insurance, and tele-vet services—continues to strengthen its long-term growth narrative.

With more than 20,000 employees and a national fulfillment network, Chewy supports a product catalog that spans consumables, specialty products, and vet-authorized prescriptions. The company has gradually shifted toward higher-margin verticals while investing in logistics automation and AI-powered customer interaction tools.

Stock Performance

Chewy closed at $35.00, up from a previous close of $34.62, reflecting renewed optimism ahead of its Q3 FY26 earnings announcement. Shares have been trading within a 52-week range of $29.83 to $48.62, with a market capitalization of $14.45 billion, supported by robust liquidity and improving fundamentals. Despite challenges seen earlier in the year, recent trading momentum aligns with growing expectations of sustained revenue growth.

Earnings Trends

Chewy has delivered a mix of earnings beats and misses over recent quarters. In Q1 FY26, the company outperformed expectations with EPS of $0.35, slightly above the $0.34 forecast. Earlier periods showed similar strength, such as its Q4 FY25 beat (+$0.08), reinforcing the trend of Chewy outperforming consensus on profitability.

Revenue remains steady, with Q2 FY26 sales at $3.1 billion and earnings of $141.1 million, demonstrating consistent growth across its core categories. Analysts expect continued margin expansion as the company improves automation, customer engagement, and operational efficiency.

Forward Estimates

Analysts covering Chewy project:

Earnings Outlook
Current quarter (Oct 2025): EPS estimate of $0.30, up sharply from $0.20 last year.
Next quarter (Jan 2026): EPS estimate of $0.29.
Full-year FY26: EPS expected to reach $1.28.
FY27 outlook: EPS forecast rising to $1.51, signaling meaningful long-term profitability improvement.

Revenue Expectations
Current quarter: $3.30B on average estimates.
FY26 revenue forecast: $33.08B.
FY27 revenue forecast: $35.35B, pointing to steady mid-single-digit annual growth.

Sales growth projections of 4.8% in 2026 and 6.1% in 2027 reflect stable industry demand and strong subscription retention.

Upcoming Earnings

Chewy will report fiscal Q3 2026 results on December 10, 2025 at 9:30 PM GMT+8, a release closely watched by analysts due to recent profitability improvements and the firm’s push into higher-margin services.

Corporate Governance

Chewy maintains a forward-leaning governance approach supported by strong operational transparency and leadership oversight. While ISS governance scores were not provided, the company historically ranks near industry averages, with emphasis on risk controls and shareholder alignment.

Outlook

Chewy enters 2026 with rising profitability, a strong customer retention engine, and stable revenue growth. Investors will closely monitor margin progress, the scalability of healthcare initiatives, and the company’s ongoing push toward operational automation. With expectations trending higher, the upcoming earnings release may serve as a pivotal signal for Chewy’s valuation trajectory going into the new year.