03:24 PM EDT, 09/11/2025 (MT Newswires) -- Chewy's (CHWY) fiscal Q2 results showed the company continues to gain market share, though UBS Securities said investors may question the cost of that growth.

The company on Wednesday reported adjusted earnings per share in line with expectations, while revenue of $3.10 billion exceeded market expectations.

The brokerage said Chewy raised its full-year sales outlook to between $12.5 billion and $12.6 billion but maintained its adjusted earnings before interest, taxes, depreciation and amortization margin guidance at 5.4% to 5.7%.

Chewy's updated guidance indicates it may need to reinvest more heavily in the business or face higher customer acquisition costs, UBS said in a Wednesday note.

The firm added that the investor attention following the Q2 report will likely center on the company's growth profile and its implications for the long-term profitability path.

UBS has a neutral rating on the stock with a $46 price target.

Shares of Chewy were up more than 2% in recent Thursday trading.

Price: 35.90, Change: +0.79, Percent Change: +2.26