Chewy (CHWY) is trading higher as markets continue to re-rate the stock after its fiscal fourth-quarter and full-year 2025 update in late March, with investors focusing on improving profitability and cash generation and a better-than-feared outlook into fiscal 2026. Recent analyst commentary has leaned more constructive following the company’s 2026 targets, helping extend the post-earnings rebound.

Chewy’s latest set of targets for fiscal 2026 has been a key underpinning for the move, with investors emphasizing margin expansion and ongoing free-cash-flow strength rather than near-term headline earnings noise. In analyst follow-ups, Chewy’s 2026 outlook was framed as strong enough to ease concerns that the year would be dominated by reinvestment at the expense of profitability. (jp.investing.com)

After the guidance refresh, at least one major brokerage raised its price target while reiterating an outperform-style stance, citing confidence in the forward-year setup and the company’s ability to sustain margin progress. That incremental shift matters because CHWY had been coming off a period of underperformance, leaving positioning sensitive to any signs that profitability durability is improving.

With earnings now in the rearview, investors are likely to key on customer growth and retention indicators, the pace of margin expansion relative to the new fiscal 2026 framework, and whether free cash flow remains strong enough to support continued buybacks. Any additional updates tied to the company’s longer-term strategic initiatives and category expansion could also influence how quickly the market is willing to re-rate the stock.