Chewy Analysts Boost Their Forecasts Following Upbeat Q3 Earnings - Chewy (NYSE:CHWY)

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 aligning with management guidance of 28-33 cents [1] - The company achieved sales of $3.117 billion, reflecting an 8.3% year-over-year increase, exceeding the consensus of $3.099 billion and management guidance of $3.07 billion-$3.1 billion [1] Group 1: Earnings and Sales Performance - Chewy's CEO, Sumit Singh, noted that the company continues to outperform the pet category and expand market share, with profits growing faster than sales [2] - For Q4, Chewy expects adjusted earnings of 24-27 cents per share, compared to the consensus of 12 cents, and forecasts sales of $3.24 billion-$3.26 billion against the consensus of $3.272 billion [2] Group 2: Fiscal Guidance and Market Reaction - 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; the adjusted EBITDA margin is expected to be 5.6%-5.7% [3] - Following the earnings announcement, Chewy shares fell 2.15% to trade at $34.47 [3] Group 3: Analyst Ratings and Price Targets - 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]