Chewy (CHWY) is trading higher as investors focus on its newly announced acquisition of Modern Animal, a veterinary care platform, alongside a significant step-up in capital returns. The company said the transaction accelerates its push toward a more integrated pet healthcare ecosystem, while the board also approved a $500 million increase to Chewy’s existing share repurchase program—two catalysts that can support the stock simultaneously through a bigger growth narrative and reduced share count over time. (investor.chewy.com)

Chewy said the Modern Animal acquisition is expected to add more than $125 million in annualized run-rate revenue and expand Chewy Vet Care’s footprint from 18 to 47 locations nationwide. The company also indicated the transaction is expected to be EBITDA-dollar neutral in 2026 on a pro forma basis, framing the deal as an expansion move without near-term profitability dilution at the consolidated level. (investor.chewy.com)

In a separate disclosure tied to the announcement window, Chewy’s board approved an additional $500 million of repurchase capacity under its share repurchase program. While the company noted that timing and amounts will depend on market and business conditions, the size of the authorization increase is being read as a confidence signal around free cash flow generation and longer-term earnings power. (stocktitan.net)