Chewy Reports Strong Q1 Results, $200M Share Repurchases, and Completes $400M Modern Animal Acquisition
CHWY is trading near its 52-week low of $19.3 (13% above the low).
Summary
Chewy reported strong first-quarter financial results with significant growth in sales and profitability, alongside substantial share repurchases and strategic acquisitions to expand its pet healthcare offerings.
Key Events · Earnings and Guidance · CHWY
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Strong Q1 Financial Performance
Net sales increased 7.7% year-over-year to $3.36 billion, net income rose 51.9% to $94.8 million, and adjusted EBITDA grew 31.3% to $253.1 million.
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Significant Share Repurchases
The company repurchased $200 million of Class A common stock during the quarter, with $550 million remaining under the authorized program. This follows a $500 million increase to the program approved on April 7, 2026.
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Strategic Acquisitions Completed
Chewy completed the $175 million SmartPak acquisition in Q1 and the $400 million Modern Animal acquisition on May 21, 2026, expanding its pet healthcare ecosystem.
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CFO Appointment Formalized
Christopher S. Deppe was formally appointed Chief Financial Officer, effective February 23, 2026.
Analysis · CHWY · Trade & Services
This 10-Q provides the detailed financial results for Q1 FY2026, confirming strong performance with a 7.7% increase in net sales and a 51.9% jump in net income. The company also repurchased $200 million in common stock during the quarter, signaling management confidence. Strategic expansion into pet healthcare is evident with the completion of the $400 million Modern Animal acquisition, alongside the earlier $175 million SmartPak acquisition. The formal appointment of Christopher S. Deppe as CFO also provides clarity on executive leadership.
At the time of this filing, CHWY was trading at $21.82 on NYSE in the Trade & Services sector, with a market capitalization of approximately $8.3B. The 52-week trading range was $19.30 to $47.50. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.