Chewy (NYSE:CHWY) Releases Q3 2025 Earnings Guidance

Key Points

• Chewy updated its Q3 2025 earnings guidance, projecting earnings per share of 0.280-0.330, surpassing consensus estimates of 0.230, and revenue guidance of $3.1 billion, higher than the consensus estimate of $3.0 billion.
• Following the earnings update, Chewy's stock rose by 1.5%, with shares opening at $42.23, while the company's market capitalization is approximately $17.53 billion.
• Significant trading activity occurred with major shareholder Argos Holdings selling approximately 29.9 million shares, leading to insider ownership dropping to 0.43% and raising concerns among investors.

Chewy (NYSE:CHWY - Get Free Report) issued an update on its third quarter 2025 earnings guidance on Wednesday morning. The company provided earnings per share (EPS) guidance of 0.280-0.330 for the period, compared to the consensus estimate of 0.230. The company issued revenue guidance of $3.1 billion-$3.1 billion, compared to the consensus revenue estimate of $3.0 billion. Chewy also updated its FY 2025 guidance to EPS.

Chewy Stock Up 5.2%

Chewy stock traded up $1.82 during mid-day trading on Monday, reaching $36.48. 11,046,287 shares of the company's stock were exchanged, compared to its average volume of 6,611,312. The business's fifty day simple moving average is $38.47 and its 200 day simple moving average is $38.33. The firm has a market capitalization of $15.15 billion, a PE ratio of 104.23, a P/E/G ratio of 7.25 and a beta of 1.65. Chewy has a one year low of $26.28 and a one year high of $48.62.

Chewy (NYSE:CHWY - Get Free Report) last released its earnings results on Wednesday, September 10th. The company reported $0.14 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.33 by ($0.19). Chewy had a return on equity of 50.45% and a net margin of 1.22%.The firm had revenue of $3.10 billion during the quarter, compared to analysts' expectations of $3.08 billion. During the same period in the prior year, the business earned $0.24 earnings per share. The business's quarterly revenue was up 8.6% compared to the same quarter last year. Chewy has set its FY 2025 guidance at EPS. Q3 2025 guidance at 0.280-0.330 EPS. On average, sell-side analysts forecast that Chewy will post 0.24 earnings per share for the current year.

Analyst Ratings Changes

Several equities analysts have recently weighed in on CHWY shares. Barclays reduced their price target on Chewy from $50.00 to $47.00 and set an "overweight" rating for the company in a research report on Thursday. TD Cowen reduced their price target on Chewy from $50.00 to $48.00 and set a "buy" rating for the company in a research report on Thursday. JMP Securities reiterated a "market outperform" rating and issued a $48.00 price target on shares of Chewy in a research report on Thursday. UBS Group reduced their price target on Chewy from $46.00 to $43.00 and set a "neutral" rating for the company in a research report on Thursday. Finally, Evercore ISI set a $52.00 price target on Chewy and gave the company an "outperform" rating in a research report on Thursday, June 12th. Two equities research analysts have rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating and four have assigned a Hold rating to the company. According to data from MarketBeat, Chewy currently has an average rating of "Moderate Buy" and a consensus target price of $45.72.

Insider Buying and Selling

In related news, CAO William G. Billings sold 20,142 shares of the business's stock in a transaction dated Monday, August 4th. The stock was sold at an average price of $35.57, for a total transaction of $716,450.94. Following the transaction, the chief accounting officer owned 29,464 shares in the company, valued at $1,048,034.48. The trade was a 40.60% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CTO Satish Mehta sold 8,727 shares of the business's stock in a transaction dated Tuesday, August 5th. The shares were sold at an average price of $35.82, for a total value of $312,601.14. Following the transaction, the chief technology officer owned 276,467 shares in the company, valued at approximately $9,903,047.94. This represents a 3.06% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders sold 30,008,777 shares of company stock worth $1,252,444,321. Insiders own 0.43% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in CHWY. Osterweis Capital Management Inc. purchased a new position in shares of Chewy during the 2nd quarter worth approximately $30,000. EverSource Wealth Advisors LLC grew its holdings in shares of Chewy by 412.2% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,091 shares of the company's stock worth $46,000 after acquiring an additional 878 shares during the period. Sandia Investment Management LP purchased a new position in shares of Chewy during the 2nd quarter worth approximately $213,000. Keel Point LLC purchased a new stake in shares of Chewy in the 2nd quarter worth approximately $214,000. Finally, M&T Bank Corp purchased a new stake in shares of Chewy in the 2nd quarter worth approximately $226,000. Hedge funds and other institutional investors own 93.09% of the company's stock.

About Chewy

Chewy, Inc, together with its subsidiaries, engages in the pure play e-commerce business in the United States. It provides pet food and treats, pet supplies and pet medications, and other pet-health products, as well as pet services for dogs, cats, fish, birds, small pets, horses, and reptiles through its retail websites and mobile applications.