Chewy (NYSE:CHWY) shares fell 1.9% in premarket trading after JPMorgan downgraded the online pet retailer to Neutral from Overweight and lowered its price target to $24 from $29.
JPMorgan cited pressure on organic growth from macroeconomic conditions and trends in discretionary and premium pet retail categories. The downgrade came two days after Chewy reported its fiscal second-quarter 2026 results.
The analyst action represents JPMorgan’s assessment of the company’s outlook rather than company guidance.
Chewy Q2 Revenue Reaches $3.33 Billion
Chewy reported fiscal second-quarter adjusted earnings per share of $0.36, in line with the consensus estimate cited in the source.
Net sales reached $3.33 billion, slightly above analyst expectations.
According to the supplied material, the quarterly results included benefits from tariff refunds, gift card breakage and the timing of vendor rebates.
Several other analysts adjusted their price targets following the September 9 earnings release. RBC, TD Cowen, BofA and Raymond James reduced their respective targets, while Needham maintained a Hold rating.
Needham cited stabilising macroeconomic conditions alongside continued pressure in discretionary categories including treats, according to the source.
Piper Sandler separately reiterated its Buy rating on Chewy on Friday.
Chewy Shares Remain Below 52-Week High
Chewy’s premarket decline occurred while the S&P 500, Dow Jones and Nasdaq were trading higher, according to the supplied material.
The source also noted that Chewy shares were trading towards the lower end of their 52-week range, compared with a 52-week high of $40.55.
No other company announcement was identified in the supplied material as a factor in Friday’s premarket share-price movement.