Chewy (CHWY) delivered largely in-line results in fiscal Q3, supported by strong active customer growth and encouraging early comments on the 2026 outlook, RBC Capital said Wednesday in a report.

Management's Q4 guidance met expectations and includes a $10 million one-time charge tied to the SmartEquine acquisition, the report said. Adjusted earnings before interest, taxes, depreciation, and amortization margins are forecast to expand 120 basis points to 5.1% from the implied 4.7% at the midpoint of guidance, RBC said.

For 2026, Chewy expects trends similar to 2025, with flat pet household growth offset by pricing gains and margin improvement driven by lower operating costs and increased automation in fulfillment centers, the report said.

RBC raised its net sales growth forecasts to 6.2% in 2025 and 7.9% in 2026, while keeping the 2026 adjusted EBITDA margin estimate unchanged at 6.2%.

RBC maintained its outperform rating on Chewy stock with a price target of $43.

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