Chewy to Report Q4 Earnings on March 25. TD Cowen Reaffirms Buy Rating on CHWY Stock, Expects ‘Solid’ Results

Online pet food and supplies retailer Chewy CHWY -0.59% ▼ will announce its results for the fourth quarter of Fiscal 2025 before the market opens on Wednesday, March 25. Ahead of Q4 FY25 earnings, TD Cowen analyst William Kerr reiterated a Buy rating on CHWY stock with a price target of $39, saying that he expects the company to report “solid” results.

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CHWY stock has declined 29% so far in 2026 due to concerns about a slowdown in top-line growth amid competition from larger players like Amazon AMZN -1.38% ▼ and Walmart WMT +1.10% ▲ , as well as macro pressures.

Meanwhile, Wall Street expects Chewy to report GAAP earnings per share (EPS) of $0.09 for Q4 FY25 compared to $0.05 in the prior-year quarter. Net sales are projected to rise by only 0.6% to $3.27 billion.

TD Cowen Analyst’s Views Ahead of Chewy’s Q4 Earnings

Kerr expects Chewy to report Q4 FY25 revenue of $3.27 billion, in line with the Street’s expectations and the high end of the guidance, driven by growth in Active Customer and Net Sales Per Active Customer (NSPAC).

Furthermore, the analyst expects the company’s gross margin to expand to 29.3% in Q4 FY25, from 28.5% in the prior-year quarter, driven by ad growth, first-party brands, and a higher average selling price (ASP). Meanwhile, Kerr expects Chewy’s EBITDA (earnings before interest, taxes, depreciation, and amortization) to increase 26.9% year-over-year to $158 million, which he noted is below consensus.

Kerr noted the selloff in Chewy stock. He added that CHWY stock currently trades at a 10.0x EV/EBITDA multiple based on his FY26 estimates. He views this level as “highly attractive,” given his 18% EBITDA growth (CAGR) estimate for 2026 to 2031 and CHWY’s relative insulation from potential tariff and recession headwinds compared to other e-commerce players. “We continue to view CHWY as benefiting from improving trends in the pet industry as we highlighted in our recent deep dive,” concluded Kerr.

Evercore Analyst Weighs in on Q4 Expectations

Evercore analyst Mark Mahaney reiterated a Buy rating on Chewy stock with a price target of $52. Based on early intra-quarter data points, his firm’s model sensitivity analysis, and management’s track record, the 4-star analyst said that he “tentatively” expects a “modest Beat & Bracket Q4 print.”

Notably, Mahaney views the Street’s Q4 FY25 revenue estimate as reasonable, with a slightly higher chance of an upside than downside, given Chewy’s historical track record, industry checks, and third-party data trends. He also considers the Street’s EBITDA estimate of $160 million to be reasonable and in line with the 50 to 100 basis points year-over-year margin expansion over the past three quarters.

Is Chewy Stock a Buy, Sell, or Hold?

With 11 unanimous Buys, Chewy scores Wall Street’s Strong Buy consensus rating. The average CHWY stock price target of $44.40 indicates 89.3% upside potential.

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