Chewy (CHWY) stock took a beating on Wednesday after the pet supplies e-commerce company released its earnings report for the second quarter of 2025. The report started with adjusted diluted earnings per share of 33 cents, which was well above Wall Street’s estimate of 14 cents. The company’s EPS also increased 37.5% year-over-year from 24 cents.
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Chewy reported revenue of $3.1 billion in Q2 2025, which was another beat compared to analysts’ estimate of $3.08 billion. That also represented revenue growth of 8.4% year-over-year from $2.86 billion. This was largely fueled by a 15% increase in Autoship customer net sales, as that represented 83% of the revenue reported for the quarter.
Chewy stock was down 7.24% in pre-market trading on Wednesday, despite the strong earnings beat. Even so, the company’s shares have rallied 25.71% year-to-date and 39.22% over the past 12 months.
Chewy Guidance
Chewy provided investors with updated guidance in its Q2 2025 earnings report. The company expects Q3 adjusted EPS to range from 28 cents to 33 cents alongside revenue of $3.07 billion to $3.1 billion. With midpoints of 31 cents and $3.09 billion, the company is on track to match or beat Wall Street’s estimates of 31 cents per share and revenue of $3.05 billion.
Chewy also released guidance for the full year of 2025 in its latest earnings report. It expects revenue for the year to come in between $12.5 billion and $12.6 billion, which would see it beat analysts’ estimate of $12.48 billion.
Is Chewy Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Chewy is Strong Buy, based on 16 Buy and four Hold ratings over the past three months. With that comes an average CHWY stock price target of $48.12, representing a potential 14.3% upside for the shares. These ratings and price targets will likely change as analysts update their coverage after today’s earnings report.
