Chewy Analysts Boost Their Forecasts Following Upbeat Q3 Earnings

Core Insights - Chewy Inc. reported better-than-expected earnings for Q3 2025, with adjusted earnings of 32 cents per share, surpassing the consensus of 13 cents and falling within management guidance of 28-33 cents [1] - The company achieved sales of $3.117 billion, reflecting an 8.3% year-over-year increase, compared to the consensus of $3.099 billion and management guidance of $3.07 billion-$3.1 billion [1] Financial Performance - Chewy's Q3 2025 adjusted earnings exceeded expectations, indicating strong financial performance [1] - The company anticipates Q4 adjusted earnings of 24-27 cents per share, above the consensus of 12 cents, and forecasts Q4 sales between $3.24 billion and $3.26 billion, slightly below the consensus of $3.272 billion [2] Sales Guidance - Chewy raised its fiscal 2025 sales guidance from $12.50 billion-$12.60 billion to $12.58 billion-$12.60 billion, while the consensus stands at $12.67 billion [3] - The adjusted EBITDA margin is expected to be between 5.6%-5.7%, an increase from the prior guidance of 5.4%-5.7% [3] Market Reaction - Following the earnings announcement, Chewy shares fell by 2.15% to trade at $34.47 [3] - Analysts have adjusted their price targets for Chewy, reflecting a positive outlook despite the share price decline [3] Analyst Ratings - Barclays analyst Trevor Young maintained an Overweight rating on Chewy and raised the price target from $47 to $52 [4] - Goldman Sachs analyst Alexandra Steiger also maintained a Buy rating and increased the price target from $44 to $52 [4]