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Chewy vs. MercadoLibre: Steady Results vs. Rapid Revenue Growth
Key Points
When evaluating overall scale and current quarterly performance, MercadoLibre currently demonstrates significantly stronger and much larger total revenue generation than Chewy at this specific point in time.
Over the course of the last eight documented quarters, MercadoLibre exhibits a distinct and steep quarter-over-quarter upward trend overall, whereas Chewy maintains a much flatter and mostly steady quarter-over-quarter trajectory throughout the identical observation timeframe.
Investors analyzing these two companies should closely watch whether their widening historical revenue gap continues to accelerate further apart or if the divergence finally begins to stabilize during the upcoming financial reporting periods.
Chewy: Maintaining a Gradual and Steady Revenue Trend
Chewy (NYSE:CHWY) primarily generates revenue by operating a comprehensive online retail platform that supplies an extensive variety of pet food, daily accessories, prescribed medications, and specialized wellness items directly to individual pet owners living all across the United States.
It recently finalized the acquisition of a dedicated veterinary platform to introduce physical clinic locations and virtual care services, while several third-party pet food brands sold on its website were simultaneously recalled for potential bacterial contamination.
MercadoLibre: Demonstrating Rapid Upward Revenue Growth
MercadoLibre mainly earns revenue by operating a massive digital commerce marketplace, managing complex regional logistics networks, and offering various financial technology services, such as digital payment processing and consumer credit, to everyday users across Latin America.
It recently completed the widespread regional rollout of a new artificial intelligence search architecture across multiple marketplace websites. At the same time, several external law firms announced targeted investigations into potential violations of federal securities laws by the organization.
Why Revenue Matters for Investors
Revenue here refers to the data provider's standardized income-statement revenue line item, and consistently tracking this metric helps individual investors clearly understand the total volume of money flowing into a business before any normal operating expenses are finally deducted.
Quarterly Revenue Comparison for Chewy and MercadoLibre
| Calendar quarter | Chewy Revenue | MercadoLibre Revenue |
|---|---|---|
| Q3 2024 | $2.9 billion (quarter ended Oct. 27, 2024) | $5.3 billion (quarter ended Sept. 30, 2024) |
| Q4 2024 | $3.2 billion (quarter ended Feb. 2, 2025) | $6.1 billion (quarter ended Dec. 31, 2024) |
| Q1 2025 | $3.1 billion (quarter ended May 4, 2025) | $5.9 billion (quarter ended March 31, 2025) |
| Q2 2025 | $3.1 billion (quarter ended Aug. 3, 2025) | $6.8 billion (quarter ended June 30, 2025) |
| Q3 2025 | $3.1 billion (quarter ended Nov. 2, 2025) | $7.4 billion (quarter ended Sept. 30, 2025) |
| Q4 2025 | $3.3 billion (quarter ended Feb. 1, 2026) | $8.8 billion (quarter ended Dec. 31, 2025) |
| Q1 2026 | $3.3 billion (quarter ended May 3, 2026) | $8.8 billion (quarter ended March 31, 2026) |
| Q2 2026 | $3.3 billion (quarter ended Aug. 2, 2026) | $10.2 billion (quarter ended June 30, 2026) |
Foolish Take
Admittedly, if looking at the raw numbers, MercadoLibre is the obvious choice, as its revenue has risen fast over time. Nonetheless, the risk profile may put Chewy in a more favorable light.
For one, Chewy is based in the U.S., and many American investors may feel more comfortable investing in a market they might understand better. Additionally, among the consumer discretionary stocks, Chewy's P/E ratio of 28 is well below the 48 P/E ratio of MercadoLibre.
Furthermore, in the second quarter of 2026, MercadoLibre's net income fell 11% year over year despite 50% revenue growth over the same period. In comparison, Chewy's net income rose 29% year over year, while revenue increased only 7%, which may put risk-averse investors at ease.
However, MercadoLibre's net income fell because it chose to sacrifice short-term profits in favor of bolstering its e-commerce and fintech businesses, a move that could pay off in the long term. Thus, if their risk tolerance permits, they are probably better off choosing MercadoLibre.
Data source: Financial Modeling Prep. Data as of Sept. 21, 2026.
Will Healy has positions in MercadoLibre. The Motley Fool has positions in and recommends Chewy and MercadoLibre. The Motley Fool has a disclosure policy.