Chewy Reports Q2 2026 Earnings with Revenue Growth Driven by Health and Fresh Products
Chewy, Inc. reported a 7.3% revenue growth in the second quarter of fiscal 2026, outperforming the broader pet category by two to three times despite a still-stabilizing consumer environment. The company attributed this performance to triple-digit revenue growth in Chewy Vet Care and strong unit sales in its fresh and frozen product lines. Autoship customer sales accounted for 84.6% of total net sales, reinforcing predictable revenue streams. Profitability improved due to higher-margin health categories, expansion of sponsored ads, and cost reductions via automation. However, slower growth was noted in discretionary items like treats and toppers as consumers remain cautious with spending outside core essentials such as food and medication. The integration of Modern Animal and SmartPak is progressing ahead of schedule, enhancing Chewy’s telehealth offerings. Looking forward, management plans a redesigned Chewy Plus program for Q3 that includes health benefits aimed at increasing customer engagement. AI initiatives are expected to save tens of millions in costs by 2027, while advertising spend will rise in the second half of the year ahead of the holiday season.
Topics: profitability_expansion revenue_growth strategic_initiatives