Chewy Stock Falls 8% Despite Higher Q2 Earnings

Chewy Inc (CHWY) reported Q2 revenue of $3.33B, up 7.3% YoY, and adjusted EPS of $0.36, beating estimates. However, shares fell 8.6% due to free cash flow of $89.5M, missing expectations. Adjusted EBITDA rose 23.7% to $226.7M. Active customers increased 3.8% to 21.705M. Analysts noted profit beat was aided by one-time items and guidance suggests stable growth with heavy reinvestment.

Chewy reported Q2 2026 net sales of $3.33B, up 7.3%, with active customers at 21.7M. Adjusted EBITDA margin expanded to 6.8%. FY2026 revenue guidance raised to $13.46B-$13.57B. Management highlighted AI-driven cost savings and growth in key segments, while noting macroeconomic pressures on discretionary spending.

Chewy (CHWY) fell 11% after reporting a 15% drop in free cash flow to $89.5M, despite beating revenue estimates and raising its full-year outlook. Petco (WOOF) also declined 6%, while Freshpet (FRPT) rose 2% on strong revenue growth and an improved sales forecast. Chewy's Autoship sales accounted for 84.6% of revenue, with 21.7 million active customers.

Chewy, Inc. reported 7.3% revenue growth in Q2 2026, driven by strong performance in Chewy Vet Care and fresh/frozen products. Autoship sales reached 84.6% of total net sales. Management expects AI initiatives to generate cost savings and plans to launch a redesigned Chewy Plus program in Q3. The company completed the acquisition of Modern Animal for $400 million, which is currently a modest drag on margins. Q2 adjusted EBITDA margin was 6.8%, including one-time benefits. Management maintains a

Chewy reported Q2 revenue of $3.33B, adjusted EBITDA margin of 6.8%, and a 3.8% increase in active customers. Despite beating estimates, shares fell 10.16% as investors questioned the sustainability of margin gains. Management guided Q3 revenue to $3.323B–$3.358B and adjusted EBITDA margin to 6.6%–6.7%.

Chewy (CHWY) stock fell 7.7% after its Q2 earnings report, despite meeting EPS estimates and slightly beating revenue forecasts. Revenue grew 7.4% YoY, and the company raised its full-year sales guidance. Investors are reacting to macroeconomic concerns and cautious consumer spending.