Chewy Inc (CHWY) Climbs 13.3% on Upbeat Sales Outlook

Chewy Inc. (NYSE:CHWY) is one of the 10 Stocks Investors Are Buying Now.

Chewy bounced back by 13.30 percent on Wednesday to finish at $26.57 apiece, as investor sentiment was bolstered by its upbeat growth outlook for the year, encouraged by a strong sales performance in 2025.

In an updated report, Chewy Inc. (NYSE:CHWY) said that it is targeting to grow its net sales by 7.9 to 9 percent to a range of $13.60 billion to $13.75 billion, versus the $12.6 billion last year. Adjusted EBITDA margin is also projected to increase by 6.6 to 6.8 percent.

Photo from Chewy website

For the first quarter alone, net sales are pegged at $3.33 billion to $3.36 billion, or an implied growth of 6.7 to 7.7 percent from the $3.12 billion registered in the same quarter last year.

Despite strong sales, Chewy Inc. (NYSE:CHWY) saw its net income last year drop by 43 percent to $222.8 million from $392.7 million in 2024. However, net income for the fourth quarter alone surged by 72 percent to $39.2 million from $22.8 million year-on-year.

Prior to its financial release, investment firm TD Cowen reiterated its “buy” recommendation and $39 price target for the stock, given its 18 percent CAGR in its EBITDA for years 2026 to 2031, as well as its relative insulation from potential tariffs and recession headwinds versus its counterparts.

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