BofA Securities has reaffirmed its buy recommendation and set a price target of $31 for Chewy Inc. shares ahead of the company’s fiscal second-quarter results, scheduled for release on Sept. 8, 2026.
Analysts at Piper Sandler and TD Cowen also maintained positive ratings, with price targets of $30 and $34, respectively. TD Cowen named Chewy its top small- and mid-cap idea for 2026. Market consensus estimates anticipate Chewy’s Q2 revenue at $3.3 billion, a 6.9% year-over-year increase.
EBITDA projections for the quarter stand at $211 million, translating to a 6.4% margin. For Q3, EBITDA is expected to rise to $226 million. Over the trailing twelve months, Chewy has generated $399.3 million in EBITDA. Analysts project incremental margins of 13% in Q2 and 21% to 22% in Q3 and Q4.
Options market pricing suggests a potential 10% swing in Chewy’s stock price following the earnings release, reflecting elevated expectations.
Chewy’s sales growth accelerated to 5% year-over-year in July, according to Second Measure data, up from 4% in June. The company’s July performance was driven by a 2% increase in active customers and a 0.2% rise in average transaction value. Broader pet sector spending growth also ticked up to 2% year-over-year in July, compared with 1% in the prior quarter.
BofA Securities’ reiteration follows a period of strong share price performance for Chewy, which has seen its shares benefit from positive investor sentiment toward the pet retail sector and the company’s reported improvements in customer retention and transaction frequency.
