Chewy Stock Targets $100 Amid Optimism Over Growth and Margin Expansion

Chewy Inc. (CHWY) has re-entered the spotlight as analysts and retail investors speculate whether its stock could reach $100 per share. The current trading range near $75.80 reflects heightened expectations, particularly following the company’s Q4 2025 results, which showed a 9.4% year-over-year increase in total revenue to $2.18 billion. This marks its fifth consecutive quarter of top-line growth, signaling resilience in the pet care e-commerce segment. The underlying driver behind the $100 target is a combination of improved gross margins and enhanced operational efficiency. In Q4 2025, Chewy reported a gross margin of 25.3%, up 120 basis points from the same period the prior year. This improvement is attributed to better vendor pricing, reduced shipping costs, and increased scale in fulfillment operations. Analysts note that margin expansion could continue, especially if the company achieves its goal of reducing fulfillment costs by 10% over the next 18 months. Additionally, Chewy’s active customer base grew to 24.7 million in Q4 2025, a 6.1% increase year-over-year. Customer retention rates improved to 87.3%, up from 84.9% in Q4 2024, indicating stronger engagement and loyalty. These metrics support the thesis that while revenue growth may moderate, profitability and unit economics are improving. Market sentiment has shifted positively, with CHWY’s market capitalization surpassing $28 billion as of early March 2026. Institutional ownership rose to 62.4% in the latest filing, suggesting growing confidence among large investors. However, the path to $100 remains contingent on sustained margin gains, continued customer growth, and macroeconomic stability in consumer spending.