Chewy reported fiscal Q1 2026 net sales of approximately $3.36 billion, up from $3.12 billion in the prior year, representing 7.7% year-over-year growth (Digital Commerce 360 - AI). The growth was fueled by expansion of pet health services and aggressive deployment of artificial intelligence across the enterprise. CEO Sumit Singh noted that AI has been embedded in customer service, pharmacy operations, fulfillment, and marketing flows.
Singh said Chewy expects AI-driven efficiencies to contribute a low tens of millions of dollars benefit in fiscal 2026, with a more meaningful ramp expected into 2027 and beyond (Digital Commerce 360 - AI). Pet health and veterinary care represent the company's largest long-term growth opportunity; approximately 40% of Chewy Vet Care (CVC) customers are new to the retailer, and existing customers who engage with vet clinics increase spending meaningfully faster than other cohorts (Digital Commerce 360 - AI). Subscription Autoship sales grew 10% year-over-year and accounted for 84.4% of total net sales, while the company grew active customers 3.6% year-over-year to 21.5 million (Digital Commerce 360 - AI).
Chewy closed its acquisition of Modern Animal in Q1 and expects to end the fiscal year operating about 60 veterinary clinics (Digital Commerce 360 - AI). For commerce practitioners, the combination of AI-powered operational efficiency and high-margin pet health services demonstrates a dual-pronged strategy to defend margins amid consumer spending pressure while building defensible, high-lifetime-value customer cohorts.