Chewy (CHWY) Morgan Stanley Technology, Media & Telecom Conference 2026 summary

Progress against long-term targets

• Revenue growth has returned to high single-digit to low double-digit rates, exceeding internal expectations despite a tepid market in 2023.

• Net customer additions and share of wallet are both running ahead of expectations, with growth expected to be sustainable into 2024 and beyond.

• Autoship penetration has surpassed 80% of net sales, and new ventures like Chewy Vet Care have outperformed initial forecasts.

• Adjusted EBITDA margins have expanded faster than planned, averaging 130-140 basis points over two years, with profitability expected to continue improving.

• Leadership expresses increased confidence in forward performance, citing strong execution and successful bold initiatives.

Leadership and organizational updates

• Chris Deppe was promoted to CFO due to his deep operational experience, strategic alignment, and strong cultural fit.

• Deppe has overseen FP&A and long-range planning for 15 months and has been instrumental in scaling the company’s sophisticated supply chain.

• The management team emphasizes an operator-owner mindset and values internal continuity in leadership roles.

Industry outlook and market trends

• The U.S. pet market is estimated at $150 billion, with the company now addressing $140 billion of that total addressable market.

• Market growth has been driven primarily by volume, not price, and this trend is expected to persist through 2026.

• Pet adoption rates are improving, but normalized refresh rates are unlikely to be reached by 2026; pricing and promotional environments are expected to remain rational.

• E-commerce tailwinds and expansion into new categories like equine and health are expected to drive continued share gains.