Chewy’s Strong Q3 and Higher 2025 Sales Outlook Might Change The Case For Investing In CHWY

• Chewy reported past third-quarter 2025 results showing net sales rising to US$3,116.6 million and net income improving to US$59.2 million, while also issuing fourth-quarter guidance and narrowing full-year 2025 sales expectations to about US$12.58–US$12.60 billion, implying roughly 8% adjusted year-over-year growth.
• The quarter underscored the growing weight of Chewy’s Autoship subscriptions and newer health services, as these higher-engagement offerings helped lift profitability and supported management’s decision to raise full-year sales guidance despite integration costs from the Smart Equine acquisition.
• Next, we’ll explore how Chewy’s raised full-year sales outlook reshapes its investment narrative built around subscriptions, health services, and margin expansion.

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Chewy Investment Narrative Recap

To own Chewy, you need to believe its subscription heavy model, expanding health ecosystem, and margin focus can offset slowing category growth and intense competition. The latest quarter supports that case near term, with better profitability and raised full year sales guidance, while leaving the key risks of Autoship concentration and modest customer growth largely intact.

The most relevant update here is Chewy’s tighter full year 2025 net sales outlook of about US$12.58 to US$12.60 billion, implying roughly 8% adjusted growth. That guidance leans on Autoship subscriptions and newer vet and health offerings as near term growth and margin catalysts, but also highlights how dependent the investment case is on these higher engagement services continuing to scale efficiently.

Yet despite those positives, investors still need to consider how Chewy’s heavy reliance on Autoship could affect...

Read the full narrative on Chewy (it's free!)

Chewy’s narrative projects $15.1 billion revenue and $467.3 million earnings by 2028. This requires 7.7% yearly revenue growth and about a $79 million earnings increase from $388.2 million today.

Uncover how Chewy's forecasts yield a $44.95 fair value, a 27% upside to its current price.

Exploring Other Perspectives

Seven members of the Simply Wall St Community currently see Chewy’s fair value between about US$44 and US$56, reflecting a wide spread of views. Against this backdrop, Chewy’s raised 2025 sales guidance and margin ambitions put even more focus on whether its Autoship driven model and newer health services can sustain growth and profitability over time.

Explore 7 other fair value estimates on Chewy - why the stock might be worth as much as 60% more than the current price!

Build Your Own Chewy Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Chewy research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Chewy research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Chewy's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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