Chewy Inc. (NYSE: CHWY), the online pet supplies and pet health platform, heads into a key earnings week with its share price hovering in the low‑$30s and Wall Street laser‑focused on profitability, subscription growth, and the company’s expanding vet‑care ecosystem.
As of the close on December 5, 2025, Chewy stock traded at about $33.47, giving the company a market capitalization of roughly $13.8 billion. The shares sit well below their 52‑week high near $48.62 and just above the 52‑week low around $29.83, leaving Chewy in the lower half of its one‑year trading range. [1]
Below is a deep dive into today’s setup for CHWY – including the latest news, insider moves, earnings expectations, and how analysts are valuing the stock going into 2026.
1. Chewy stock today: price, range and valuation snapshot
- Latest close (Dec 5, 2025): ~$33.47
- Day’s range: roughly $33.10 – $33.62 [2]
- 52‑week range:$29.83 – $48.62 [3]
- Market cap: ~$13.8B [4]
- 52‑week change: roughly +7–8%, underperforming the S&P 500 over the same period [5]
- Valuation: trailing P/E ~94x and a 200‑day moving average around $37.6, above the current price. [6]
In plain English: Chewy is profitable, but thinly so, and the market still prices it like a growth stock. A premium multiple on modest margins is one of the core debates around CHWY today.
2. Recent share price performance and volatility
Chewy shares have been choppy in late November and early December:
- On December 2, the stock fell about 3.1% after a Piper Sandler note flagged growing investor concern that the story is shifting from “growth at all costs” to “show me the profits,” highlighting only modest beats on some margin metrics in recent quarters. [7]
- On December 4, Zacks reported that Chewy closed at $33.47, down 3.79% on the day even as the broader market advanced, underscoring short‑term risk‑off sentiment toward the name. [8]
Chewy’s 52‑week range of $29.83–$48.62 tells the same story: the stock has swung nearly 60% peak‑to‑trough over the past year. [9]
For traders and momentum investors, this volatility is an opportunity. For long‑term investors, it highlights how quickly sentiment can shift when a richly valued retailer misses, or even just narrowly meets, expectations.
3. 2025 fundamentals so far: steady growth, tight margins
Q1 2025: solid start, but margin scrutiny
For the quarter ended May 4, 2025, Chewy reported: [10]
- Net sales:$3.12 billion (+8.3% year over year)
- Gross margin:29.6% (down 10 bps YoY)
- Net income:$62.4 million, net margin 2.0%
- Adjusted EBITDA:$192.7 million, margin 6.2% (+50 bps YoY)
- Adjusted diluted EPS:$0.35, slightly ahead of expectations
While revenue and adjusted earnings beat estimates, some investors were disappointed that GAAP net income came in a bit light versus consensus, and that gross margin slipped modestly. Several commentaries described Q1 as “strong top‑line, but not a clean beat on profitability.” [11]
Q2 2025: guidance raised, Autoship engine humming
Chewy’s Q2 2025 (quarter ended August 3, 2025) was, operationally, one of its strongest yet: [12]
- Net sales:$3.10 billion, +8.6% YoY (above the high end of guidance)
- Gross margin:30.4%, up 90 bps YoY
- Net income:$62.0 million (net margin 2.0%)
- Adjusted EBITDA:$183.3 million (margin 5.9%, +80 bps YoY)
- Autoship customer net sales: up 15%, representing ~83% of total net sales
- Active customers: nearly 21 million, +4.5% YoY
- Net sales per active customer (NSPAC): about $591, +4–5% YoY
Crucially, management raised full‑year 2025 net sales guidance to roughly $12.5–$12.6 billion, implying high‑single‑digit growth, and reiterated a mid‑single‑digit adjusted EBITDA margin target. [13]
Still, the stock fell sharply after the Q2 release, with several outlets noting that expectations had simply run ahead of what even a good quarter could justify. Barron’s and others highlighted that the results beat on revenue and matched EPS, yet shares dropped around 13–15% as investors locked in gains and refocused on valuation. [14]
4. Strategic growth drivers: subscriptions, pet health and new categories
Despite the volatility, the core operational story at Chewy continues to revolve around three pillars:
4.1 Autoship and membership: recurring revenue flywheel
- In Q2 2025, Autoship represented roughly 82–83% of total net sales and grew 15% year over year. [15]
- Autoship orders are mostly consumables (food, litter, pharmacy), which tend to be non‑discretionary even in weaker macro conditions.
- Chewy’s Chewy+ membership program is ramping, with management indicating a mid‑single‑digit contribution to net sales and higher engagement from members. [16]
Analysts at BofA and others have repeatedly called out this subscription‑like revenue as a key reason Chewy remains one of the more resilient “everyday goods” e‑commerce plays, with consumables and pharmacy making up more than 85% of sales. [17]
4.2 Pet health push: vet clinics, pharmacy and insurance
Chewy is also leaning aggressively into pet health and vet care:
- The company has been expanding its Chewy Vet Care clinic network and telehealth offerings, with Q3 commentary (from earlier periods) noting that vet clinics are boosting NSPAC and deepening engagement. [18]
- A Fortune feature this summer highlighted that U.S. households spend nearly $40 billion annually on vet care and pet pharmaceuticals, and noted that Chewy’s expansion into vet services and pharmacy is designed to capture more of this fast‑growing pool. [19]
- Simply Wall St’s November piece on Chewy’s “new pet health push” argued that this strategy, combined with recurring revenue, underpins a discounted cash‑flow (DCF) valuation suggesting the stock trades well below its estimated intrinsic value. [20]
4.3 New categories and acquisitions
Chewy is also extending its reach into adjacent categories:
- In September 2025, Chewy launched “Get Real™”, a minimally processed fresh dog food line aimed at higher‑margin, premium nutrition. [21]
- In October 2025, the company agreed to acquire SmartPak Equine from Covetrus, expanding its position in equine health and supplements. [22]
These moves are designed to push Chewy further into higher‑value, stickier segments of pet ownership beyond basic kibble and litter.
5. The very latest news (early December 2025)
Heading into the December 10, 2025 earnings release, three themes dominate the newsflow around Chewy stock: institutional flows, insider selling, and pre‑earnings nerves.
5.1 Institutional positioning: big holders reshuffle
Fresh 13F filings show that institutional investors are actively rebalancing their exposure to Chewy:
- On December 6, MarketBeat reported that Prudential Financial cut its stake by about 62% in Q2, ending the period with roughly 38,445 shares worth about $1.64 million. [23]
- Other recent filings show firms like Franklin Resources, New York State Common Retirement Fund and Seven Grand Managers either initiating or increasing positions, while several pensions and asset managers trimmed holdings. [24]
Taken together, the data suggest no simple “smart money” consensus: some large holders are de‑risking after a big run earlier in 2025, while others see current levels as an attractive entry.
5.2 Insider selling: CEO and CTO transactions in focus
Insider activity has also caught traders’ attention:
- A filing reported that CEO Sumit Singh sold about 40,789 shares of Class A stock on December 2, 2025 at an average price around $33.73, for proceeds of roughly $1.38 million; his spouse sold a smaller block at the same price. [25]
- A separate Form 4 details December stock sales by Chewy’s CTO, executed under Rule 10b5‑1 trading plans, alongside disclosures about performance‑based and time‑based RSU awards that will vest between 2026 and 2027. [26]
These transactions don’t automatically signal trouble – executives frequently sell to diversify or cover taxes – but they add to the narrative that some insiders are taking advantage of earlier share price strength.
5.3 Pre‑earnings jitters: profitability under the microscope
Several recent notes and articles underscore growing pre‑earnings tension:
- Zacks’ piece “Chewy (CHWY) Stock Declines While Market Improves” highlighted the 3.79% drop on December 2 and framed it as a sign of shifting sentiment ahead of earnings. [27]
- A StockStory/Yahoo article titled “Why Chewy (CHWY) Shares Are Trading Lower Today” pinned the December 2 sell‑off on a Piper Sandler report that questioned the pace of margin improvement, noting Chewy has recently only modestly beaten key profitability metrics rather than delivering the double‑digit outperformance investors grew used to. [28]
- Simply Wall St’s early‑December “valuation check” flagged repeated gross‑margin misses and pre‑earnings volatility, arguing that while a DCF model still shows upside, investors must weigh that against near‑term profitability risk. [29]
In short, the market no longer gives Chewy a free pass on profits: any sign of margin slippage on December 10 is likely to be punished.
6. Next catalyst: Q3 2025 earnings on December 10
Chewy will report fiscal Q3 2025 results on Wednesday, December 10, 2025, before the market opens, followed by an 8:00 a.m. ET conference call. [30]
Consensus expectations for the quarter (ended around late October 2025) currently center on: [31]
- Revenue: ~$3.09–$3.10 billion
- EPS: around $0.31, within management’s earlier guidance range of $0.28–$0.33
Beyond the headline numbers, analysts will be watching:
- Active customers and NSPAC – is growth in customers and wallet share holding up after Q2’s strong 4–5% increases?
- Autoship penetration – does Autoship remain above 80% of sales, and is growth still mid‑teens?
- Vet Care and health services – how fast are clinics and health subscriptions scaling, and what are their margin profiles? [32]
- Updated 2025 guidance – does management keep its $12.5–$12.6B net sales outlook and mid‑single‑digit EBITDA margin target, or tweak it up or down? [33]
The tone of the call around 2026 investment spending vs. near‑term margins could be just as market‑moving as the raw EPS print.
7. Wall Street view: ratings, price targets and forecasts
Despite recent volatility, analyst sentiment on Chewy remains broadly constructive:
- MarketBeat reports that 26 brokerages currently cover CHWY with an average recommendation of “Moderate Buy”: 19 Buy, 5 Hold, and 2 Strong Buy ratings, and a 12‑month average price target of about $45.83. [34]
- Forecast aggregators such as StockAnalysis and other consensus platforms show a similar picture: around 20–21 analysts rate Chewy “Buy” or “Strong Buy”, with average 1‑year price targets around $45–$46, implying roughly 35–40% upside from the ~$33–34 level. [35]
- Citigroup, for example, trimmed its target from $48 to $42 in late November but reiterated a “Buy” rating, signalling that while near‑term expectations have cooled, the longer‑term thesis remains intact. [36]
Some research notes and independent platforms go further:
- Simply Wall St’s DCF‑based analysis has at times suggested Chewy may be 20–40% undervalued, driven by the combination of recurring revenue and growth in pet health services. [37]
- On the bearish side, StockStory’s fundamental report labels the stock “Underperform” on a risk‑reward basis, pointing to low‑30% gross margins, a forward EV/EBITDA multiple near 18–19x, and relatively modest forecast sales growth (~6% over the next 12 months) as reasons to prefer other opportunities. [38]
For longer‑dated projections, some forecast services compile analyst and model‑driven estimates suggesting: [39]
- Median 2026–2027 price targets in a similar mid‑$40s range,
- High‑scenario targets in the low‑$50s,
- Low‑scenario targets in the mid‑$30s, not far above current levels.
These projections are not guarantees; they simply reflect how professionals currently handicap Chewy’s growth, profitability and competitive position.
8. Competitive landscape: Chewy vs. Amazon, Petco and others
Chewy operates in an unusually competitive corner of e‑commerce:
- In paid‑search click share for U.S. online pet retail, one digital‑ad intelligence provider estimates Chewy leads with ~28.9% click share, ahead of Petco (~12%), PetSmart (~9%), Amazon (~4%) and Walmart (~4%). [40]
- At the same time, a recent Financial Times piece on UK retailer Pets at Home highlighted how online competition from Amazon, Temu and Chewy has pressured traditional pet chains’ profitability – underscoring both Chewy’s disruptive role and the intensity of the fight for pet‑owner wallets. [41]
Chewy’s edge has historically been category focus, customer service, and Autoship convenience, but giants like Amazon and Walmart continue to push deeper into pet consumables and pharmacy, limiting Chewy’s ability to raise prices aggressively.
9. Key risks for Chewy stock
Even with a largely positive analyst backdrop, several risks keep Chewy controversial:
- Margin pressure and valuation
- Despite improving mix, Chewy still runs on thin GAAP net margins (~2%), and the stock trades at a high earnings and cash‑flow multiple relative to those margins. [42]
- Any stumble on gross margin (freight, promotions, mix shift) can quickly compress earnings and send the share price lower, as seen after both Q1 and Q2 earnings.
- Competition and “petcession” fears
- While pet food and medicine are more resilient than many discretionary categories, the overall pet market has slowed from pandemic highs. Competitors and discounters continue to push promotional pricing, which can squeeze Chewy’s margins if it chooses to match discounts to defend share. [43]
- Execution risk in new ventures
- Vet clinics, fresh food and international expansion (such as Canada) are promising but capital‑intensive. It may take time for these newer businesses to reach scale and profitability, and investors may balk if Chewy’s opex or capex ramps faster than revenue.
- Share‑supply and governance dynamics
- In June 2025, Chewy’s largest shareholder, an entity affiliated with BC Partners, conducted a large secondary offering of stock, while Chewy repurchased a portion of those shares. [44]
- Continued share sales by major holders and insiders can overhang the stock in the near term, even if they don’t change the fundamental thesis.
10. What to watch on and after December 10
For investors following Chewy stock around the upcoming earnings, some of the most important checkpoints will be:
- Revenue growth: does Q3 land at or above the ~$3.09–$3.10B consensus, keeping growth in the high‑single‑digit range? [45]
- Profitability:
- Gross margin relative to Q2’s 30.4%,
- Adjusted EBITDA margin relative to the ~6% level Chewy has been flirting with. [46]
- Customer metrics: active customer count, Autoship penetration, and NSPAC; these are the heartbeat of the long‑term story. [47]
- Pet health & Vet Care updates: how many clinics are open, what growth they’re seeing, and whether management offers more detailed economics for these units. [48]
- 2025–2026 guidance: any change to the $12.5–$12.6B sales target for 2025, and commentary on growth and investment intensity in 2026, will feed directly into analyst models and price targets. [49]
A clean beat on revenue and margins plus reaffirmed (or raised) guidance would likely support the bullish case that Chewy’s subscription‑driven, pet‑health‑powered model deserves its premium multiple. A miss on margins or a cautious outlook, by contrast, could reinforce skeptics’ view that the stock is still priced for perfection.
11. Bottom line: how the Chewy story looks on December 6, 2025
As of December 6, 2025, Chewy stock sits at a crossroads:
- The bull case points to:
- Recurring, high‑retention Autoship revenue now above 80% of sales,
- Expanding pet health offerings in a structurally growing ~$40B vet and pharma market,
- A still‑positive Wall Street consensus with meaningful implied upside to average price targets. [50]
- The bear case emphasizes:
- Thin margins and a rich valuation,
- Intensifying competition in both online and offline pet retail,
- Insider and major‑shareholder selling plus a pattern of sharp post‑earnings sell‑offs. [51]
Which narrative ultimately wins out will depend heavily on what Chewy delivers – and says – on December 10 and how convincingly management can show that today’s investments in health services, membership, and new categories will translate into durable, higher‑margin growth over the next several years.
Important note:
This article is for informational and educational purposes only and does not constitute financial or investment advice. Chewy stock (CHWY), like any equity, carries risk. Before buying or selling any security, consider your own objectives, risk tolerance and financial situation, and consider speaking with a qualified financial adviser.
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