E-commerce pet care giant Chewy Inc. (NYSE:CHWY) could show continued diversification into high-gross margin segments when it reports first-quarter financial results Wednesday before the market opens.
Here are the analyst estimates, analyst commentary ahead of the report and key items to watch.
Earnings Estimates: Analysts expect Chewy to report first-quarter revenue of $3.08 billion, up from $2.88 billion in last year’s first quarter, according to data from Benzinga Pro.
The company beat revenue estimates for the fourth quarter and has beaten estimates in seven of the last 10 quarters overall.
Analysts expect Chewy to report first-quarter earnings per share of 19 cents, down from 31 cents per share in last year’s first quarter. The company has beaten analyst estimates for earnings per share in 12 straight quarters.
Chewy’s guidance calls for first-quarter revenue of $3.06 billion to $3.09 billion and first-quarter adjusted earnings per share in the range of 30 cents to 35 cents per share.
Read Also: Chewy Analysts Applaud Customer Growth, Strong Execution Following Upbeat Q4 Results
What Analysts Are Saying: Chewy could be a defensive stock with a strong base of Autoship customers providing recurring, highly visible revenue, said JPMorgan analyst Doug Anmuth in a recent investor note.
Anmuth reiterated an Overweight rating and price target of $36 on Chewy ahead of the earnings.
He said Chewy is seeing rising profitability and pushing into high-margin segments like pharmacy to diversify revenue. Anmuth also highlighted the company’s international expansion, Sponsored Ads and category leadership as reasons to be bullish on the stock.
Anmuth, who said the company gets over 80% of sales from Autoship customers, forecasts Chewy will add 104k net customers in the first quarter.
In the investor note, Anmuth highlights SimilarWeb data that shows Chewy’s web traffic up 4% year-over-year in the first quarter
With the growth in higher margin segments, he sees adjusted EBITDA margin increasing along with net sales growth of 6% year-over-year in the first quarter.
Here are other recent analyst ratings on Chewy and their price targets:
- Mizuho: Downgraded from Outperform to Neutral, raised price target from $43 to $47
- UBS: Maintained Neutral rating, raised price target from $36 to $43
- Jefferies: Downgraded from Buy to Hold, raised price target from $41 to $43
- Barclays: Maintained Overweight rating, raised price target from $44 to $50
Key Items to Watch: As mentioned above, investors and analysts will likely look to Chewy’s autoship customers for potential strength. Autoship customer sales were up 21.2% to $2.62 billion in the fourth quarter.
Another area to be closely monitored is the company’s growth in pharmaceutical, advertising and other high-margin segments. Having started primarily as an e-commerce pet food and supplies company, Chewy is now looking to expand for its next wave of growth.
Expansion efforts center on pharmaceutical and international.
“As we embark on 2025, the momentum in the business has remained strong and we remain committed to executing Chewy’s strategic priorities as we continue to drive innovation across the pet category,” Chewy CEO Sumit Singh said after fourth-quarter results.
Analysts and investors will also be watching to see if Chewy updates if full-year guidance, reiterates guidance, or withdraws guidance as some other companies have done due to tariff and macroeconomic concerns.
CHWY Price Action: Chewy stock was down 2.3% to $45.46 on Tuesday, compared to a 52-week trading range of $19.75 to $48.62. However, Chewy stock is up 34% year-to-date in 2025 and over 100% over the last year.
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