Chegg has announced a 60% reduction in capital expenditures for fiscal 2026, lowering planned outlays from approximately $120 million in 2025 to about $48 million. Management expects this cut to free up roughly $72 million in cash flow, which will be redirected into targeted marketing campaigns, content licensing partnerships and incremental feature development on its learning platform. The company has already signed agreements with three new textbook publishers and plans to launch adaptive practice tools in Q2, aiming to improve user retention metrics and drive a 10% year-over-year increase in paying subscribers by the end of 2026.

Chegg’s stock is trading at a forward 12-month price-to-sales ratio of 0.36, compared with the Zacks Internet–Software industry average of 1.2 and the broader Computer & Technology sector average of 2.0. This discount implies a 70% valuation gap relative to peers, despite Chegg reporting revenue growth of 18% in its most recent quarter. Analysts covering the stock have a consensus price-target upside of 35% over the next 12 months, citing stable subscription renewals and the potential boost from the reallocated CapEx budget as key catalysts.