Chewy (NYSE: CHWY) Stock Analysis: Q2 Results, Updated Guidance, and Analyst Price Targets

• Chewy (NYSE: CHWY) reported largely in-line fiscal second-quarter results, but its shares fell 10.8% as investors focused on slowing organic growth, cautious consumer spending, and competitive pressures.
• Morgan Stanley lowered its price target to $36 while maintaining a positive view of the stock, whereas Evercore ISI downgraded Chewy to In Line and established a more cautious $25 target.
• The pet-products retailer raised its fiscal 2026 net-sales forecast to between $13.46 billion and $13.57 billion and projected an adjusted EBITDA margin of 6.7% to 6.8%.

Chewy (NYSE: CHWY) is an online retailer of pet food, medications, supplies, and other pet-related products. Its direct-to-consumer business operates primarily through its website and mobile app, with its Autoship program supporting recurring purchases. Chewy competes with retailers such as Petco, Amazon, and other online and physical pet-supply businesses.

On September 10, 2026, Morgan Stanley lowered its price target for Chewy to $36. With the shares closing at $20.75 on September 9, the target represented approximately 73.5% potential upside. However, a price target reflects an analyst’s projection and does not guarantee that the stock will reach that level.

Chewy’s fiscal second-quarter results were largely consistent with Wall Street expectations. Net sales increased 7.3% year over year to $3.33 billion, slightly exceeding the $3.32 billion FactSet consensus estimate. Adjusted earnings were $0.36 per share, matching analysts’ expectations and increasing from $0.33 per share in the prior-year period.

Despite the in-line results, Chewy shares fell 10.8% to $20.75, marking their largest one-day percentage decline in a year. Investors appeared concerned about slowing organic growth, subdued discretionary spending on products such as pet treats, and intensifying competition. Active customers increased 3.8% to 21.71 million, slightly below analysts’ projection of approximately 21.74 million.

Chewy raised its fiscal 2026 net-sales guidance to between $13.46 billion and $13.57 billion, up from its June forecast of $13.40 billion to $13.55 billion. However, the revised range remains below the company’s original March outlook of $13.60 billion to $13.75 billion, reflecting continued caution about consumer demand. The company also forecast an adjusted EBITDA margin of 6.7% to 6.8%.

Analysts remain divided on the stock’s outlook. Morgan Stanley’s $36 price target reflects considerable potential upside from the September 9 closing price. In contrast, Evercore ISI analyst Mark Mahaney downgraded Chewy from Outperform to In Line and assigned a $25 price target, citing slower organic growth, weak macroeconomic conditions, competitive pressures, and the maturity of the pet-products category.