Chewy Posts 7.3% Sales Gain, Raised Outlook as Evercore Downgrades on Thin Margin Beat

EarningsAnalyst
โดย Insider Monkey·US·Read original
Summary · why it matters

Chewy reported second-quarter results on September 9, 2026, with net sales up 7.3% to $3.33 billion, adjusted EPS of $0.36, and a raised full-year outlook. Following the results, Evercore ISI downgraded Chewy to In Line, while RBC and TD Cowen cut their price targets, and the stock fell roughly 10% intraday before bouncing, sitting about 48% below its 52-week high. Active customers rose 3.8% to 21.7 million, and AI is expected to deliver approximately $50 million of annualized savings in fiscal 2027, but organic revenue growth excluding M&A slowed to 5.7%. The 6.8% adjusted EBITDA margin benefited from tariff refunds, rebate timing and other discrete items that management said accounted for essentially all of the quarter's adjusted EBITDA outperformance versus expectations. According to Evercore ISI, the quarter delivered only a minimal beat-and-raise, leaving the stock in need of an obvious growth catalyst, with none on the horizon, and the shares trade at 35x earnings. Insider Monkey data shows 44 hedge funds held CHWY in the second quarter of 2026, down from 53 in the first quarter.

Impact on stocks 3

Financials▼ · 2 stocks
Evercore Partners Inc
EVR
▼ NegativeCapitalrelevance

Evercore ISI downgraded Chewy to In Line, saying the quarter was only a minimal beat-and-raise with no obvious growth catalyst.

Royal Bank of Canada
RY
▼ NegativeCapitalrelevance

RBC cut its price target on Chewy following the second-quarter results.

Consumer Discretionary▲ · 1 stocks
Chewy Inc
CHWY
± MixedCapitalDemandrelevance

Evercore downgraded Chewy to In Line and RBC/TD Cowen cut price targets after a thin beat-and-raise, with the margin outperformance driven by one-off tariff refunds and rebate timing.

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