Chewy (CHWY) Stock Gains on Upgraded Sales Forecast Despite Challenging Year

Key Highlights

• Shares of Chewy advanced 1.9% to $23.20 in premarket activity following upgraded annual revenue projections
• Second quarter adjusted earnings reached $0.36 per share, in line with analyst forecasts
• Quarterly revenue increased 7.3% year-over-year to $3.33 billion, narrowly surpassing the $3.32 billion estimate
• Management elevated full-year revenue forecast to $13.46B-$13.57B range, exceeding Street expectations at the midpoint
• The stock has declined approximately 34% during the trailing twelve-month period

Shares of Chewy moved higher during Wednesday’s premarket session after the online pet products retailer enhanced its annual revenue projections, offering investors a bright spot following an otherwise unremarkable quarterly earnings release.

Chewy, Inc., CHWY

The equity gained 1.9% to reach $23.20 in early trading, recovering from Tuesday’s 1.7% pullback. Shares had most recently settled at $23.27.

During the second fiscal quarter that concluded on August 2, Chewy reported adjusted profits of $0.36 per share. This figure aligned precisely with analyst projections and represented an improvement from the $0.33 posted in the same period last year.

Quarterly revenue totaled $3.33 billion, marking a 7.3% climb compared to the prior year period. This marginally topped the Street’s $3.32 billion projection.

While the quarterly results themselves lacked fireworks, the forward-looking projections captured investor attention.

Management Boosts Annual Revenue Forecast

Chewy enhanced its fiscal 2027 revenue outlook to a $13.46 billion to $13.57 billion band. This represents an upgrade from the company’s prior $13.4 billion to $13.55 billion range.

The midpoint of the revised guidance stands at $13.515 billion, modestly exceeding the Wall Street consensus target of $13.48 billion.

Looking to the third fiscal quarter, management projected revenue between $3.323 billion and $3.358 billion. With analysts anticipating $3.33 billion, Chewy’s outlook essentially met expectations for the coming period.

Challenging Market Performance Continues

Even with Wednesday’s premarket advance, CHWY has endured a difficult stretch in 2026. The shares have tumbled approximately 34% during the past year and dropped roughly 30% year-to-date through Tuesday’s market close.

Over the past three-month window, the stock has rebounded about 20%, indicating some positive momentum was building ahead of this quarterly report.

According to InvestingPro data, analysts issued zero upward EPS revisions and 12 downward EPS adjustments for Chewy during the previous 90 days. This pattern hardly reflects bullish sentiment leading into the earnings announcement.

Nevertheless, the enhanced guidance provided enough ammunition for the market to bid shares higher in early action.

InvestingPro assigns Chewy a “good performance” rating regarding financial health metrics.

The second quarter figures demonstrate stable, albeit modest, expansion. Top-line growth continues trending positively while the company maintains profitability.

Given the dozen negative earnings estimate revisions over three months and the stock’s substantial year-long decline, the upgraded sales outlook likely offered enough encouragement to drive near-term buying interest.

Chewy’s revised annual revenue guidance midpoint of $13.515 billion now exceeds the analyst consensus benchmark of $13.48 billion.

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