| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 52 | 31.0x | 17.8x | Around median | |
Growth | 66 | 5.9% | 7.1% | Top tier | |
Quality | 90 | 20.2% | 4.5% | Top tier | |
Safety | 75 | 1.2x | 2.6x | Top tier | |
Capital Return | 50 | — | 2.12% | Around median | |
Momentum | 12 | -44.4% | 2.9% | Bottom tier | |
Sentiment | 43 | 14 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Chewy is a specialized pet products and services commerce platform that generates revenue from the sale of staple foods, medications, supplies, health products, and durable goods, alongside the Chewy Health ecosystem, which includes pharmacy, Chewy Vet Care, and Modern Animal. Its Autoship program provides a recurring revenue base; sales reached $2.8 billion, or 84.6% of net sales, in the second quarter of fiscal 2026, while the business also expanded through SmartPak, equine, farm, and exotic-animal products, and sponsored advertising.
In the second quarter of fiscal 2026, net sales reached $3.33 billion, up 7.3% year over year, while organic growth was 5.7% excluding SmartPak and Modern Animal. The company recorded gross profit of approximately $1 billion and a gross margin of 30.4%, GAAP net income of $80.5 million with a net margin of approximately 2.4% and earnings per share of $0.20, while adjusted net income reached $149 million and adjusted earnings per share were $0.36.
Adjusted earnings before interest, taxes, depreciation, and amortization reached $227 million, with a margin of 6.8% versus prior guidance of between 6.3% and 6.4%. Active customers reached 21.7 million, up 3.8%, while sales per active customer increased to $602; however, approximately $10 million of the quarterly improvement was related to the timing of fee reimbursements and incentives, and other discrete benefits exceeded $5 million, so the full margin strength does not represent a recurring operating run rate.
The average analyst price target is $30.07, within a wide range of $23 to $37, with a consensus rating of “Buy”; the average is below the 52-week range high of $40.55, while the highest target is equivalent to approximately 91% of that high. The 52-week range extends from $17.40 to $40.55, and no specific price-to-earnings ratio is available in the data despite trailing-twelve-month net income of $273.7 million, making the stock’s valuation sensitive to margin sustainability and the conversion of earnings into cash flow. The wide target range reflects differing views between Autoship and Chewy Health growth and raised guidance on one hand, and consumer weakness and non-recurring items in the second-quarter fiscal 2026 margin on the other.
Figures in the text are as of 2026-09-10; the live price is shown at the top of the page.
Net sales increased 7.3% to $3.33 billion, while organic growth was 5.7% excluding SmartPak and Modern Animal. Active customers grew 3.8% to 21.7 million, the company added 208 thousand net customers sequentially, and sales per active customer reached $602. Market-share gains, 9.3% growth in Autoship, and the expansion of Chewy Health contributed to the results.
Autoship generated sales of $2.8 billion in the second quarter of fiscal 2026 and represented 84.6% of total net sales. The program grew 9.3% year over year, exceeding the company’s overall growth of 7.3%. This high proportion provides Chewy with a recurring demand base, particularly in staple foods and medications, which customers continued to prioritize over discretionary purchases.
Chewy launched the Kai text assistant for a selected group of mobile-app users, and it was able to handle approximately 30% of conversations autonomously across orders, returns, Autoship, and account management topics. Callie, a voice assistant, is also used at some Chewy Vet Care locations to confirm and schedule appointments and conduct routine follow-ups, while other tools are applied in pharmacy and customer service. Management expects savings in the low tens of millions in fiscal 2026 and approximately $50 million annually in fiscal 2027, with some potentially used to offset cost inflation or fund growth.
Automated analysis for informational purposes only — not investment advice.
The company expects net sales of between $13.46 billion and $13.57 billion, representing annual growth of 6.8% to 7.7%, and organic growth of 5.5% to 6.3%. It expects an adjusted earnings before interest, taxes, depreciation, and amortization margin of between 6.7% and 6.8%, with the midpoint implying approximately $912 million of these earnings. The midpoint of guidance does not assume a meaningful recovery in consumer spending, but rather a continuation of the conditions observed during the months preceding September 9, 2026.
Gross margin reached 30.4%, and the adjusted earnings before interest, taxes, depreciation, and amortization margin reached 6.8% versus guidance of between 6.3% and 6.4%. However, approximately $10 million of the improvement came from the timing of fee reimbursements and incentives, in addition to more than $5 million of discrete benefits related to gift cards, inventory, and vendor funding. Management therefore expects gross margin to decline modestly sequentially in the third quarter of fiscal 2026, while remaining higher year over year.
Chewy completed its $400 million acquisition of Modern Animal during the second quarter of fiscal 2026 and said that Modern Animal and SmartPak performed above the assumptions included in prior guidance. SmartPak added approximately 43 thousand unique customers to the active customer count, while Modern Animal has approximately 100 thousand customers, 40% to 50% of whom the company expects to be new to Chewy. Nevertheless, Modern Animal remained a modest headwind to the adjusted earnings margin during the quarter, and the company has not yet included its customer additions in its reported outlook.
