Chewy Stock Drops 23% Despite 8.3% Revenue Growth
Get the Finance newsletter
Daily finance — markets, central banks, M&A, the prints that move money. Free.
- Chewy's stock price fell approximately 23% in 2026, underperforming the broader market despite continued revenue growth.
- Chewy reported 8.3% revenue growth in fiscal 2025 Q3, driven by a 13.6% increase in recurring delivery service sales to $2.6 billion.
- Chewy's active customer base grew 4.9% year over year to 21.2 million, with sales per customer also rising 4.9% to $595.
- Chewy operates with a price-to-earnings (P/E) ratio of 52, significantly higher than the S&P 500's multiple of 29, reflecting elevated growth expectations.
- Chewy's management is pursuing growth initiatives including veterinarian clinics, which they stated have gotten off to a good start.
Why it matters: Chewy’s 23% stock drop reveals investor skepticism about its ability to justify a 52 P/E ratio despite solid but slowing growth, making the stock riskier for buyers expecting rapid expansion. The gap between valuation and performance could widen if growth initiatives fail to scale.
Ask SkimNews
