Chewy’s (NYSE: CHWY) fiscal year 2026 (FY2026) Q3 results highlight why it is a good buy to hold in 2026. The company is outperforming expectations and lifting guidance amid a business growth spurt and improving operational quality. Operational quality is a critical factor as Chewy produces profits, has free cash flow, and buys back shares. The Q3 activity aided a 1.6% year-to-date (YTD) reduction in share count, and the aggressive pace is expected to continue in the upcoming quarters. What is also likely is that this company will continue to perform at the high end of its industry, take market share, improve its quality, and drive its share price higher.
The technical outlook in mid-December is favorable. The Q3 release triggered a mild after-hours sell-off, but it was a knee-jerk reaction to soft guidance that was later viewed as cautious. The critical detail is that after-hours weakness turned to strength in the open session, with the stock price advancing more than 4% quickly after the bell. The takeaway is that this market is a little skittish, but has solid support at the cluster of moving averages, aligning with a market reversal that began in 2024. The likely outcome is that CHWY stock will continue to advance over the coming weeks, months, and quarters, potentially setting a fresh long-term high by mid-year 2026.
