Chewy Posts Solid Q4, Indicates AI-Related Efficiency Benefits Ahead

Shares of Chewy Inc (NYSE:CHWY) rose in early trading on Thursday after the company reported upbeat fourth-quarter (Q4) results.

Here are the key analyst insights:

• Guggenheim Securities analyst Steven Forbes reiterated a Buy rating and price target of $45.
• Needham analyst Bernie McTernan reaffirmed a Hold rating on the stock.

Check out other analyst stock ratings.

Guggenheim Securities: Chewy reported solid quarterly results, with net sales of $3.265 billion and adjusted earnings of 27 cents per share coming in at the high-end of management’s guidance, Forbes said in a note. The company guided to 2026 net sales of $13.60-$13.75 billion and adjusted EBITDA margin of 6.60%-6.80%, in-line with expectations, he added.

"We see the potential for 30-40 basis points of fulfillment cost leverage in 2026," the analyst wrote. Management also indicated AI-related efficiency benefits of "low tens of millions of dollars" during 2026 and another $50 million in 2027, "setting the stage for significant G&A expense leverage," he further stated.

Needham: Chewy's fourth-quarter revenues reflected the "stability and durability" of its business, McTernan said. Autoship strength, now representing 84% of sales, continues to drive predictable, recurring demand through strong retention and consistent reorder behavior.

Management's guidance for 2026 reflects market share gains driven by volume growth as well as AI efficiency gains "specifically in customer service, fulfillment, pharmacy and marketing," the analyst stated. "CHWY is among the first in our coverage to quantify the efficiency gains from AI," he further wrote.

CHWY Price Action: Shares of Chewy had risen by 2.60% to $27.26 at the time of publication on Thursday.

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