Key Takeaways
- CHWY shares gained 1.9% in premarket sessions, reaching $23.20 following an upward revision to annual sales projections
- Second-quarter adjusted earnings per share of $0.36 aligned with analyst forecasts
- Revenue for Q2 increased 7.3% year-over-year to $3.33 billion, narrowly surpassing the $3.32 billion estimate
- Annual net sales forecast increased to $13.46B-$13.57B range, exceeding Street expectations at the midpoint
- CHWY shares have declined approximately 34% over the trailing twelve months
Chewy stock advanced during Wednesday’s premarket session after the online pet products retailer increased its annual revenue projections, providing investors with a positive catalyst despite an otherwise unremarkable quarterly performance.
Shares rose 1.9% to $23.20 in premarket activity after dropping 1.7% during Tuesday’s regular session. The stock had most recently closed at $23.27.
The company reported adjusted earnings of $0.36 per share for its fiscal second quarter ending August 2. This figure precisely met Wall Street’s consensus forecast and represented an improvement from the $0.33 posted in the same period last year.
Quarterly net sales reached $3.33 billion, representing a 7.3% jump compared to the prior year period. This narrowly topped the analyst estimate of $3.32 billion.
While the quarterly results were solid, the more significant development came from the company’s updated forward-looking projections.
Management Increases Annual Revenue Forecast
Chewy elevated its fiscal 2027 net sales guidance to a range between $13.46 billion and $13.57 billion. This represents an increase from the prior guidance range of $13.4 billion to $13.55 billion.
The new midpoint of $13.515 billion exceeds the analyst consensus estimate of $13.48 billion.
Looking toward the fiscal third quarter, the company projected net sales between $3.323 billion and $3.358 billion. With analyst consensus at $3.33 billion, this guidance essentially meets expectations.
Shares Face Headwinds Despite Recent Rally
Even with Wednesday morning’s uptick, CHWY has struggled throughout 2026. Shares have tumbled approximately 34% over the past twelve months and declined roughly 30% year-to-date through Tuesday’s market close.
The stock has shown signs of life recently, climbing about 20% during the past three months, indicating some building momentum prior to this earnings announcement.
Analyst sentiment has tilted negative recently, with InvestingPro data showing zero positive EPS revisions and 12 downward EPS revisions during the last 90 days. This pattern suggested cautious expectations heading into the report.
However, the improved guidance provided the market with sufficient optimism to drive shares higher in early trading.
InvestingPro assigns Chewy’s financial health a “good performance” rating.
The second-quarter figures demonstrate consistent, though not spectacular, expansion. Sales continue trending upward while the company maintains profitability.
Given the dozen negative earnings revisions over recent months combined with significant share price depreciation over the past year, the enhanced guidance likely offered investors much-needed encouragement.
The updated midpoint for Chewy’s annual net sales guidance of $13.515 billion now exceeds Wall Street’s consensus forecast of $13.48 billion.
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