Chewy vs. Shopify: Stable Patterns vs. Rapid Acceleration in Quarterly Revenue
Key Points
Shopify currently displays a stronger revenue trajectory than Chewy, having overtaken the other company in recent quarters with consistently higher year-over-year gains.
While Chewy exhibits steady quarter-over-quarter revenue levels with minimal fluctuation over the last eight periods, Shopify experiences greater revenue volatility.
Investors should closely watch whether the absolute revenue gap between the two companies continues to widen or if it begins to narrow in upcoming periods.
Chewy: Maintaining Steady Revenue Increments Over the Past Year
Chewy (NYSE:CHWY) primarily generates revenue by acting as an online retailer that sells roughly 100,000 unique items--including food, treats, prescribed medications, and everyday wellness supplies for domestic companion animals--supplied by thousands of partner brands across the United States.
While simultaneously expanding its physical veterinary care practices into new locations and launching a consolidated private-label brand identity for pet essentials, it reported an operating margin of approximately 4.2% for the quarter ended May 3, 2026.
Shopify: Accelerating Revenue and Seasonal Fluctuations
Shopify (NASDAQ:SHOP) primarily generates revenue by providing software and related commercial services across multiple international regions, enabling global merchants to set up digital storefronts, manage physical inventory, process payments, and coordinate shipping logistics.
It recently authorized an additional $3 billion for share repurchases and experienced intermittent service disruptions over the summer, while concurrently reporting an operating margin of approximately 17% for the quarter ended June 30, 2026.
Why Revenue Matters for Retail Investors Comparing These Stocks
Revenue here refers to the standardized income-statement revenue line item. This is the most fundamental measure of a company's performance. It serves as a practical gauge of the total incoming money a business generates from its daily operations during a specific quarter before accounting for any subsequent operating costs or taxes.
Quarterly Revenue for Chewy and Shopify
| Calendar quarter | Chewy Revenue | Shopify Revenue |
|---|---|---|
| Q3 2024 | $2.9 billion (quarter ended Oct. 27, 2024) | $2.2 billion (quarter ended Sept. 30, 2024) |
| Q4 2024 | $3.2 billion (quarter ended Feb. 2, 2025) | $2.8 billion (quarter ended Dec. 31, 2024) |
| Q1 2025 | $3.1 billion (quarter ended May 4, 2025) | $2.4 billion (quarter ended March 31, 2025) |
| Q2 2025 | $3.1 billion (quarter ended Aug. 3, 2025) | $2.7 billion (quarter ended June 30, 2025) |
| Q3 2025 | $3.1 billion (quarter ended Nov. 2, 2025) | $2.8 billion (quarter ended Sept. 30, 2025) |
| Q4 2025 | $3.3 billion (quarter ended Feb. 1, 2026) | $3.7 billion (quarter ended Dec. 31, 2025) |
| Q1 2026 | $3.3 billion (quarter ended May 3, 2026) | $3.2 billion (quarter ended March 31, 2026) |
| Q2 2026 | Not yet reported | $3.6 billion (quarter ended June 30, 2026) |
Data source: Company filings. Data as of Aug. 26, 2026.
Foolish Take
The relative performance of these companies' revenue largely reflects each company's addressable market. Chewy is seeing steady, but slower revenue growth in the $150 billion pet industry. However, Shopify serves the $6 trillion global e-commerce market, which is why it continues to grow revenue at higher rates.
Chewy is investing to expand into other business lines, such as pet health and vet care, to maintain revenue growth. Meanwhile, Shopify has seen a slight acceleration in revenue over the last year, driven by increased shopping activity from people using AI to find products.
It's unclear if Chewy will be able to meaningfully accelerate its revenue to regain the lead over Shopify in revenue size. Shopify seems to be racing ahead as it rides two major tailwinds: a growing e-commerce market and AI-driven commerce activity.
The question for investors is how much growth is already priced into Shopify stock relative to Chewy's. The latter may offer better value, with the pet food retailer trading at a forward price-to-earnings ratio of about 15, while Shopify trades at much higher multiples.
If Chewy can successfully expand margins through healthcare products and services, in addition to advertising, it could deliver market-beating returns.
John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chewy and Shopify. The Motley Fool has a disclosure policy.