Chewy Reports 7.3% Revenue Growth to $3.33 Billion in Q2 2026

Chewy, Inc. reported a notable increase in its financial performance for the second quarter of fiscal 2026, with net sales reaching $3.33 billion, a 7.3% increase from $3.10 billion in the same period last year. For the first half of the fiscal year, net sales totaled $6.69 billion, up 7.5% from $6.22 billion. The company also achieved a net income of $80.5 million for the quarter, representing a 29.8% increase compared to $62.0 million in the prior year. For the first half, net income rose 40.9% to $175.3 million. The earnings per share for the quarter were $0.20, up from $0.15 a year earlier.

The company experienced significant growth in active customers, which increased by 3.8% to 21.7 million, including approximately 43,000 customers from the recent acquisition of SmartPak. The average net sales per active customer also rose to $602, reflecting a $11 increase year-over-year. Chewy's Autoship program, which allows customers to schedule regular deliveries, accounted for 84.6% of net sales during the quarter, further emphasizing the company's focus on customer retention and recurring revenue.

Strategically, Chewy completed two significant acquisitions in 2026: SmartPak, a provider of equine health and nutrition products, and Modern Animal, a technology-driven veterinary platform. The acquisition of SmartPak was finalized in February 2026 for $175 million, while the acquisition of Modern Animal was completed in May 2026 for $399.8 million. These acquisitions are expected to enhance Chewy's offerings in pet healthcare and specialty products, aligning with its goal of becoming a fully integrated pet healthcare ecosystem.

Operationally, Chewy's total liabilities increased to $3.37 billion as of August 2, 2026, up from $2.87 billion at the beginning of the fiscal year, largely due to the new debt incurred from the acquisitions. The company also reported a cash balance of $611 million, down from $860 million at the start of the fiscal year, reflecting cash used for acquisitions and share repurchases. Chewy repurchased 17.5 million shares of its common stock for $400 million during the first half of the fiscal year, as part of its ongoing share repurchase program.

Looking ahead, Chewy remains cautious about macroeconomic conditions, including inflation and consumer spending patterns, which may impact demand. The company plans to continue monitoring these factors while focusing on expanding its product offerings and enhancing customer engagement through its e-commerce platform. Chewy's management expressed confidence in its ability to sustain growth and profitability, supported by its strategic initiatives and strong customer base.