Chewy is acquiring technology-enabled veterinary care provider Modern Animal, accelerating its push into the pet healthcare market. The combined businesses are expected to operate 60 clinics by the end of fiscal 2026, with embedded revenue contribution approaching $290 million at steady state. Chewy's fiscal 2026 outlook includes an estimated $70 million revenue contribution from Modern Animal, with total net sales guidance of $13.40 billion to $13.55 billion, representing year-over-year growth of 6.3% to 7.5%. Management expects the acquisition to create a modest margin-rate drag during 2026 as integration progresses, while the company plans to open 10 to 12 Chewy Vet Care locations this year. Chewy shares have fallen 22.8% in the past three months, and the stock currently carries a Zacks Rank #4 (Sell).
Chewy IncChewy acquires Modern Animal to expand pet healthcare platform, with expected revenue contribution and clinic growth
Petco Health and Wellness Company, Inc.Chewy's acquisition of Modern Animal intensifies competition in pet healthcare, potentially pressuring Petco's market position
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