The Pet Economy's Perfect Storm Chewy's stock price has taken a beating in recent months, sparking debate among investors over whether the company's growth is slowing or if its Q2 fiscal 2026 results are an overreaction.
Morgan Stanley's latest note on Chewy's performance highlights a mixed picture: net sales of $3. 33 billion, a 7. 3% year over year increase, but organic growth of only 5. 7%, down from 6. 9% in Q1.
The current economic climate is likely to blame for this deceleration. As household budgets tighten, pet owners are being forced to make tough choices about how much to spend on their pets.