Chewy posted second quarter fiscal 2026 results with adjusted earnings matching forecasts and net sales ahead of expectations, then raised its outlook as Autoship and AI driven efficiencies took center stage. The update lands after a tough stretch for the stock, with the share price down 43.42% year to date and the 1-year total shareholder return declining 51.45%, even as the 3-year total shareholder return remains positive at 11.47%. A 7-day share price return of 4.29% suggests investors are tentatively reassessing the balance between future growth potential and perceived risk at the current US$18.95 level. Chewy is priced at $18.95 against a widely followed fair value estimate of $28.64 that uses an 8.56% discount rate, a gap that turns the Autoship, pet health and AI cost story into a valuation question rather than just an earnings story. On the earnings multiple, Chewy trades at 27.8x earnings compared with a fair ratio of 20.7x, the US Specialty Retail average of 16.5x and a 15.6x peer average, a richer tag that increases the risk any stumble in the thesis affects the multiple first.
Chewy IncChewy beat on Q2 fiscal 2026 net sales, matched adjusted earnings, and raised its outlook.
