Best Buy Reports Second Quarter Results
Raises FY27 Adjusted Diluted EPS Guidance to $6.70 to $6.90 MINNEAPOLIS, August 27, 2026 -- Best Buy Co., Inc. (NYSE: BBY) today announced results for the 13-week second quarter ended August 1, 2026 (“Q2 FY27”), as compared to the 13-week second quarter ended August 2, 2025 (“Q2 FY26”).
Revenue ($ in millions) Q2 FY27 Q2 FY26 ────────────────────────────────────────────────────────────────────────────── Enterprise $ 9,779 $ 9,438 Domestic segment $ 9,070 $ 8,698 International segment $ 709 $ 740 Enterprise comparable sales % 4.1 % 1.6 % change1 Domestic comparable sales % change1 4.5 % 1.1 % Domestic comparable online sales % 5.1 % 5.1 % change1 International comparable sales % -1.8 % 7.6 % change1 Operating Income Operating income as a % of revenue 4.3 % 2.7 % Adjusted operating income as a % of 4.3 % 3.9 % revenue Diluted Earnings per Share ("EPS") Diluted EPS $ 1.48 $ 0.87 Adjusted diluted EPS $ 1.47 $ 1.28
For GAAP to non-GAAP reconciliations of the consolidated adjusted measures used throughout this release, please refer to the attached supporting schedule.
“We are very pleased to report we outperformed expectations in the second quarter with comparable sales growth of 4.1% and a higher-than-expected adjusted operating income rate,” said Corie Barry, Best Buy CEO. “We drove growth across almost all our major product categories as well as continued strong performance in our Best Buy Ads and Marketplace initiatives.”
Barry continued, “As I wrap up my remaining months with Best Buy, I’m reflecting on the dedication of our teams and the investments we’ve made, and I’m proud of the way we’ve evolved our business. Together, we have built a stronger, more resilient Best Buy, strengthened our position as a trusted partner in our customers’ lives and carved out a unique role at the intersection of technology, services and human connection.”
“The strength of our Q2 results reflects both the deliberate actions we have taken to position the business for growth and a healthy demand environment for our category,” said Jason Bonfig, Best Buy Chief Customer, Product and Fulfillment Officer, and incoming CEO (effective November 1, 2026). “Over the past several years, we have invested in areas that matter most to customers, including elevating specialty expertise in our stores, partnering closely with our vendors to bring innovation to market, and improving fulfillment speed and execution across our supply chain.”
“We are raising our annual financial guidance due to the strong first half performance and our momentum as we enter the second half of the year,” continued Bonfig. “I want to extend my appreciation to our employees across the company for their commitment to our customers and for the strong execution of our strategy.”
• Revenue of $42.3 billion to $42.8 billion, compared to prior guidance of $41.2 billion to $42.1 billion
• Comparable sales % change 1 of 1.9% to 3.0%, compared to prior guidance of (1.0%) to 1.0%
• Adjusted operating income rate 2 of 4.4% to 4.5%, compared to prior guidance of 4.3% to 4.4%
• Adjusted effective income tax rate 2 of approximately 25.5%, which is unchanged
• Adjusted diluted EPS 2 of $6.70 to $6.90, compared to prior guidance of $6.30 to $6.60
The company expects Q3 FY27 comparable sales to be in the range of 1.0% to 3.0% and adjusted operating income rate to be in the range of 4.1% to 4.2%.
Domestic revenue of $9.07 billion increased 4.3% versus last year, primarily driven by comparable sales growth of 4.5%.
From a category perspective, the company generated comparable sales growth across most of its categories, with the largest drivers on a weighted basis being computing, home theater, and a collection of emerging categories such as AI glasses and trading cards. These drivers were partially offset by a decline in the traditional gaming category.
Domestic online revenue of $3.00 billion increased 5.1% on a comparable basis, and as a percentage of total Domestic revenue, online revenue was 33.1% versus 32.8% last year.
Domestic gross profit rate was 24.0% versus 23.4% last year. The higher gross profit rate was primarily driven by growth in Marketplace and Best Buy Ads, and IEEPA tariff refunds of approximately $34 million. The previous items were partially offset by lower product margin rates.
Domestic adjusted SG&A was $1.78 billion, or 19.6% of revenue, versus $1.68 billion, or 19.3% of revenue, last year. Adjusted SG&A increased primarily due to: (1) higher compensation expense, including incentive compensation; (2) higher expenses related to the company's Marketplace and Best Buy Ads initiatives; and (3) higher advertising expense. The previous items were partially offset by lower Best Buy Health expense.
International revenue of $709 million decreased 4.2% versus last year. The revenue decrease was primarily driven by a comparable sales decline of 1.8% and the negative impact of foreign exchange rates.
International gross profit rate was 22.3% versus 21.8% last year. The higher gross profit rate was primarily due to improved product margin rates. 2
International adjusted SG&A was $145 million, or 20.5% of revenue, versus $143 million, or 19.3% of revenue, last year. The higher adjusted SG&A was primarily driven by higher advertising and depreciation expense, which was partially offset by the favorable impact of foreign exchange rates.
The company incurred a $6 million reduction to restructuring charges versus $114 million of restructuring charges last year. The prior year charges were primarily associated with a restructuring initiative intended to redirect resources for better alignment with changing customer behaviors and the company’s strategy that commenced in Q2 FY26.
In Q2 FY27, the company returned a total of $239 million to shareholders through dividends of $203 million and share repurchases of $36 million. On a year-to- date basis, the company has returned a total of $441 million to shareholders through dividends of $405 million and share repurchases of $36 million. The company expects to spend approximately $300 million on share repurchases during FY27.
Today, the company announced its board of directors has authorized the payment of a regular quarterly cash dividend of $0.96 per common share. The regular quarterly dividend is payable on October 8, 2026, to shareholders of record as of the close of business on September 17, 2026.
Best Buy is scheduled to conduct an earnings conference call at 8:00 a.m. Eastern Time (7:00 a.m. Central Time) on August 27, 2026. A webcast of the call is expected to be available at www.investors.bestbuy.com, both live and after the call.
(1) The method of calculating comparable sales varies across the retail industry. As a result, our method of calculating comparable sales may not be the same as other retailers’ methods. For additional information on comparable sales, please see our most recent Annual Report on Form 10-K, and our subsequent Quarterly Reports on Form 10-Q, filed with the Securities and Exchange Commission (“SEC”), and available at www.investors.bestbuy.com.
(2) A reconciliation of the projected adjusted operating income rate, adjusted effective income tax rate, and adjusted diluted EPS, which are forward-looking non-GAAP financial measures, to the most directly comparable GAAP financial measures, is not provided because the company is unable to provide such reconciliation without unreasonable effort. The inability to provide a reconciliation is due to the uncertainty and inherent difficulty predicting the occurrence, the financial impact and the periods in which the non-GAAP adjustments may be recognized. These GAAP measures may include the impact of such items as restructuring charges; price-fixing settlements; goodwill and acquired intangible asset impairments; certain long-lived asset impairments; gains and losses on disposals of subsidiaries and certain investments; amortization of definite-lived intangible assets associated with acquisitions; certain acquisition-related costs; and the tax effect of all such items. Historically, the company has excluded these items from non-GAAP financial measures. The company currently expects to continue to exclude these items in future disclosures of non-GAAP financial measures and may also exclude other items that may arise (collectively, “non-GAAP adjustments”). The decisions and events that typically lead to the recognition of non-GAAP adjustments, such as a decision to exit part of the business or reaching settlement of a legal dispute, are inherently unpredictable as to if or when they may occur. For the same reasons, the company is unable to address the probable significance of the unavailable information, which could be material to future results. 3 Forward-Looking and Cautionary Statements:
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 as contained in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. You can identify these statements by the fact that they use words such as “anticipate,” “appear,” “approximate,” “assume,” “believe,” “continue,” “could,” “estimate,” “expect,” “foresee,” “guidance,” “intend,” “may,” “might,” “outlook,” “plan,” “possible,” “project,” “seek,” “should,” “would,” and other words and terms of similar meaning or the negatives thereof. Such statements reflect our current views and estimates with respect to future market conditions, company performance and financial results, operational investments, business prospects, our operating model, new strategies and growth initiatives, the competitive environment, consumer behavior and other events. These statements involve a number of judgments and are subject to certain risks and uncertainties, many of which are outside the control of the Company, that could cause actual results to differ materially from the potential results discussed in such forward-looking statements. Readers should review Item 1A, Risk Factors, of our most recent Annual Report on Form 10-K, and any updated information in subsequent Quarterly Reports on Form 10-Q, for a description of important factors that could cause our actual results to differ materially from those contemplated by the forward-looking statements made in this release. Among the factors that could cause actual results and outcomes to differ materially from those contained in such forward-looking statements are the following: macroeconomic pressures in the markets in which we operate (including but not limited to real GDP growth, inflation, recession, consumer confidence, employment levels, effects of the government closures, cost of living, uncertainty over the availability of government benefits, tax rates, availability of consumer financing, interest rates, housing market conditions, foreign currency exchange rates, the price of oil, gas and other commodities and other macroeconomic trends); geopolitical pressures (including issues related to trade routes, political instability and divisiveness, the potential implementation of more restrictive trade policies, tariff increases and/or volatility, the realignment of alliances or the renegotiation of existing trade agreements); catastrophic events, health crises and pandemics; susceptibility of the products we sell to technological advancements, product life cycle fluctuations and changes in consumer preferences; competition (including from multi-channel retailers, e-commerce business, technology service providers, traditional store-based retailers, vendors and mobile network carriers, in the provision of delivery speed and options and with the strategic use of artificial intelligence); our ability to attract and retain qualified employees and changes in market compensation rates; our focus on services as a strategic priority; our reliance on key vendors and mobile network carriers (including product availability); our ability to maintain positive brand perception and recognition; our ability to effectively identify, manage and execute enterprise- wide strategies, such as strategic ventures, alliances or acquisitions; our ability to effectively manage our infrastructure, real estate portfolio and market segmentation strategy; interruptions and other factors affecting our supply chain (impacting our stores or other aspects of our operations); our utilization of third-party vendors for certain aspects of our operations; risks associated with the products we sell, including those products sold on our Marketplace platforms and products under our exclusive brand labels; our reliance on our information technology systems, internet and telecommunications access and capabilities; our ability to prevent or effectively respond to a cyber-attack, privacy or security breach; statutory, regulatory and legal developments (including statutes and/or regulations related to tax or privacy); evolving corporate governance and public disclosure regulations and expectations (including, but not limited to, cybersecurity and corporate responsibility and sustainability matters); risks arising from our international activities (including fluctuations in foreign currency exchange rates); failure to meet any financial performance guidance or other forward-looking statements; failure to effectively manage our costs; our dependence on cash flows and net earnings generated during the fourth fiscal quarter; economic or regulatory developments that might affect our ability to provide attractive promotional financing; constraints in the banking and capital markets; and changes in our credit ratings. We caution that the foregoing list of important factors is not complete. Any forward-looking statements speak only as of the date they are made and we assume no obligation to update any forward-looking statement that we may make.
Investor Contact: Media Contact: Mollie O'Brien Carly Charlson mollie.obrien@bestbuy.com carly.charlson@bestbuy.com
August 1, 2026 August 2, 2025 ────────────────────────────────────────────────────────────────────────────── Assets Current assets Cash and cash equivalents $ 2,255 $ 1,456 Receivables, net 922 917 Merchandise inventories 6,296 5,816 Other current assets 508 688 Total current assets 9,981 8,877 Property and equipment, net 1,990 2,046 Operating lease assets 2,882 2,816 Goodwill 790 908 Other assets 464 606 Total assets $ 16,107 $ 15,253 Liabilities and equity Current liabilities Accounts payable $ 6,026 $ 5,682 Unredeemed gift card liabilities 216 230 Deferred revenue 912 889 Accrued compensation and related 394 448 expenses Accrued liabilities 763 684 Current portion of operating lease 614 610 liabilities Current portion of long-term debt 11 10 Total current liabilities 8,936 8,553 Long-term operating lease 2,350 2,292 liabilities Long-term debt 1,158 1,164 Long-term liabilities 480 528 Equity 3,183 2,716 Total liabilities and equity $ 16,107 $ 15,253
Six Months Ended August 1, 2026 August 2, 2025 ────────────────────────────────────────────────────────────────────────────── Operating activities Net earnings $ 591 $ 388 Adjustments to reconcile net earnings to total cash provided by operating activities: Depreciation and 389 422 amortization Restructuring -15 223 charges Stock-based 74 75 compensation Deferred income 15 45 taxes Loss on disposal of — 4 subsidiaries Other, net 1 4 Changes in operating assets and liabilities: Receivables 119 123 Merchandise -1,079 -717 inventories Other assets 19 -24 Accounts payable 1,259 693 Income taxes -3 -167 Other liabilities -74 -286 Total cash provided by operating 1,296 783 activities Investing activities Additions to property and -344 -341 equipment Disposal of — -27 subsidiary Other, net 5 -1 Total cash used in investing -339 -369 activities Financing activities Repurchase of -36 -165 common stock Dividends paid -405 -403 Other, net -2 -6 Total cash used in financing -443 -574 activities Effect of exchange rate changes on cash -3 5 and cash equivalents Increase (decrease) in cash, cash 511 -155 equivalents and restricted cash Cash, cash equivalents and restricted 2,023 1,868 cash at beginning of period Cash, cash equivalents and restricted $ 2,534 $ 1,713 cash at end of period
(1) Represents segment Adjusted SG&A and segment Adjusted operating income as reported in accordance with Accounting Standards Codification 280, Segment Reporting .
(2) Segment Adjusted SG&A as a % of revenue is calculated as segment Adjusted SG&A divided by segment Revenue.
(3) Segment Adjusted operating income as a % of revenue is calculated as segment Adjusted operating income divided by segment Revenue.
(1) Beginning in Q1 FY27, the company reclassified certain amounts within its revenue categories to better align with management's current view of the business. The reclassification primarily relates to credit card revenue and digital content revenue (including digital gaming, software and subscriptions) that were previously included in various product revenue categories and, following the reclassification, are now included within services revenue. To ensure its financial results are comparable, the company has recast revenue, revenue mix and comparable sales by revenue category for FY25 and FY26, as well as for each quarter within such fiscal years, to conform with this reclassification. Refer to Exhibit 99.2 in the company's Current Report on Form 8-K filed on May 28, 2026, for additional information. 8
(Unaudited and subject to reclassification) The following information provides reconciliations of the most comparable consolidated financial measures presented in accordance with accounting principles generally accepted in the U.S. (GAAP financial measures) to presented consolidated adjusted financial measures (non-GAAP financial measures). The company believes that non-GAAP financial measures, when reviewed in conjunction with GAAP financial measures, can provide more information to assist investors in evaluating current period performance and in assessing future performance. For these reasons, internal management reporting also includes non-GAAP financial measures. Generally, presented non-GAAP financial measures include adjustments for items such as restructuring charges, goodwill and acquired intangible asset impairments, certain long-lived asset impairments, price-fixing settlements, gains and losses on disposals of subsidiaries and certain investments, amortization of definite-lived intangible assets associated with acquisitions, certain acquisition-related costs and the tax effect of all such items. In addition, certain other items may be excluded from non-GAAP financial measures when the company believes this provides greater clarity to management and investors. These non-GAAP financial measures should be considered in addition to, and not superior to or as a substitute for, the GAAP financial measures presented in this earnings release and the company’s financial statements and other publicly filed reports. Non-GAAP financial measures as presented herein may not be comparable to similarly titled measures used by other companies.
(1) Represents the non-cash amortization of definite-lived intangible assets associated with acquisitions, including customer relationships and tradenames.
(2) Amounts for the three and six months ended August 1, 2026, primarily relate to subsequent adjustments to previously planned organizational changes. Amounts for the three and six months ended August 2, 2025, primarily relate to charges from a labor and store optimization restructuring initiative that commenced in Q2 FY26 and a restructuring initiative within the company’s Best Buy Health business that commenced in Q1 FY26.
(3) Primarily represents the loss on disposal of a component of our Best Buy Health business.
(4) The non-GAAP adjustments primarily relate to the U.S. As such, the forecasted annual income tax on the U.S. non-GAAP adjustments is calculated using the statutory tax rate of 24.5%, adjusted for tax benefits discrete to the period. 10
Full text with the tables
Exhibit 99
Best Buy Reports Second Quarter Results
Comparable Sales Increased 4.1%
Diluted EPS Increased 70% to $1.48
Adjusted Diluted EPS Increased 15% to $1.47
Raises FY27 Comparable Sales Guidance to 1.9% to 3.0%
Raises FY27 Adjusted Diluted EPS Guidance to $6.70 to $6.90
MINNEAPOLIS, August 27, 2026 -- Best Buy Co., Inc. (NYSE: BBY) today announced
results for the 13-week second quarter ended August 1, 2026 (“Q2 FY27”), as
compared to the 13-week second quarter ended August 2, 2025 (“Q2 FY26”).
Revenue ($ in millions) Q2 FY27 Q2 FY26
──────────────────────────────────────────────────────────────────────────────
Enterprise $ 9,779 $ 9,438
Domestic segment $ 9,070 $ 8,698
International segment $ 709 $ 740
Enterprise comparable sales % 4.1 % 1.6 %
change1
Domestic comparable sales % change1 4.5 % 1.1 %
Domestic comparable online sales % 5.1 % 5.1 %
change1
International comparable sales % -1.8 % 7.6 %
change1
Operating Income
Operating income as a % of revenue 4.3 % 2.7 %
Adjusted operating income as a % of 4.3 % 3.9 %
revenue
Diluted Earnings per Share ("EPS")
Diluted EPS $ 1.48 $ 0.87
Adjusted diluted EPS $ 1.47 $ 1.28
For GAAP to non-GAAP reconciliations of the consolidated adjusted measures used
throughout this release, please refer to the attached supporting schedule.
“We are very pleased to report we outperformed expectations in the second
quarter with comparable sales growth of 4.1% and a higher-than-expected adjusted
operating income rate,” said Corie Barry, Best Buy CEO. “We drove growth across
almost all our major product categories as well as continued strong performance
in our Best Buy Ads and Marketplace initiatives.”
Barry continued, “As I wrap up my remaining months with Best Buy, I’m reflecting
on the dedication of our teams and the investments we’ve made, and I’m proud of
the way we’ve evolved our business. Together, we have built a stronger, more
resilient Best Buy, strengthened our position as a trusted partner in our
customers’ lives and carved out a unique role at the intersection of technology,
services and human connection.”
“The strength of our Q2 results reflects both the deliberate actions we have
taken to position the business for growth and a healthy demand environment for
our category,” said Jason Bonfig, Best Buy Chief Customer, Product and
Fulfillment Officer, and incoming CEO (effective November 1, 2026). “Over the
past several years, we have invested in areas that matter most to customers,
including elevating specialty expertise in our stores, partnering closely with
our vendors to bring innovation to market, and improving fulfillment speed and
execution across our supply chain.”
“We are raising our annual financial guidance due to the strong first half
performance and our momentum as we enter the second half of the year,” continued
Bonfig. “I want to extend my appreciation to our employees across the company
for their commitment to our customers and for the strong execution of our
strategy.”
FY27 Financial Guidance
The company’s FY27 financial guidance is as follows:
• Revenue of $42.3 billion to $42.8 billion, compared to prior guidance of $41.2
billion to $42.1 billion
• Comparable sales % change 1 of 1.9% to 3.0%, compared to prior guidance of
(1.0%) to 1.0%
• Adjusted operating income rate 2 of 4.4% to 4.5%, compared to prior guidance
of 4.3% to 4.4%
• Adjusted effective income tax rate 2 of approximately 25.5%, which is
unchanged
• Adjusted diluted EPS 2 of $6.70 to $6.90, compared to prior guidance of $6.30
to $6.60
• Capital expenditures of approximately $750 million, which is unchanged
The company expects Q3 FY27 comparable sales to be in the range of 1.0% to 3.0%
and adjusted operating income rate to be in the range of 4.1% to 4.2%.
Domestic Segment Q2 FY27 Results
Domestic Revenue
Domestic revenue of $9.07 billion increased 4.3% versus last year, primarily
driven by comparable sales growth of 4.5%.
From a category perspective, the company generated comparable sales growth
across most of its categories, with the largest drivers on a weighted basis
being computing, home theater, and a collection of emerging categories such as
AI glasses and trading cards. These drivers were partially offset by a decline
in the traditional gaming category.
Domestic online revenue of $3.00 billion increased 5.1% on a comparable basis,
and as a percentage of total Domestic revenue, online revenue was 33.1% versus
32.8% last year.
Domestic Gross Profit Rate
Domestic gross profit rate was 24.0% versus 23.4% last year. The higher gross
profit rate was primarily driven by growth in Marketplace and Best Buy Ads, and
IEEPA tariff refunds of approximately $34 million. The previous items were
partially offset by lower product margin rates.
Domestic Adjusted Selling, General and Administrative Expenses (“SG&A”)
Domestic adjusted SG&A was $1.78 billion, or 19.6% of revenue, versus $1.68
billion, or 19.3% of revenue, last year. Adjusted SG&A increased primarily due
to: (1) higher compensation expense, including incentive compensation; (2)
higher expenses related to the company's Marketplace and Best Buy Ads
initiatives; and (3) higher advertising expense. The previous items were
partially offset by lower Best Buy Health expense.
International Segment Q2 FY27 Results
International Revenue
International revenue of $709 million decreased 4.2% versus last year. The
revenue decrease was primarily driven by a comparable sales decline of 1.8% and
the negative impact of foreign exchange rates.
International Gross Profit Rate
International gross profit rate was 22.3% versus 21.8% last year. The higher
gross profit rate was primarily due to improved product margin rates.
2
International Adjusted SG&A
International adjusted SG&A was $145 million, or 20.5% of revenue, versus $143
million, or 19.3% of revenue, last year. The higher adjusted SG&A was primarily
driven by higher advertising and depreciation expense, which was partially
offset by the favorable impact of foreign exchange rates.
Restructuring Charges
The company incurred a $6 million reduction to restructuring charges versus $114
million of restructuring charges last year. The prior year charges were
primarily associated with a restructuring initiative intended to redirect
resources for better alignment with changing customer behaviors and the
company’s strategy that commenced in Q2 FY26.
Share Repurchases and Dividends
In Q2 FY27, the company returned a total of $239 million to shareholders through
dividends of $203 million and share repurchases of $36 million. On a year-to-
date basis, the company has returned a total of $441 million to shareholders
through dividends of $405 million and share repurchases of $36 million. The
company expects to spend approximately $300 million on share repurchases during
FY27.
Today, the company announced its board of directors has authorized the payment
of a regular quarterly cash dividend of $0.96 per common share. The regular
quarterly dividend is payable on October 8, 2026, to shareholders of record as
of the close of business on September 17, 2026.
Conference Call
Best Buy is scheduled to conduct an earnings conference call at 8:00 a.m.
Eastern Time (7:00 a.m. Central Time) on August 27, 2026. A webcast of the call
is expected to be available at www.investors.bestbuy.com, both live and after
the call.
Notes:
(1) The method of calculating comparable sales varies across the retail
industry. As a result, our method of calculating comparable sales may not be the
same as other retailers’ methods. For additional information on comparable
sales, please see our most recent Annual Report on Form 10-K, and our subsequent
Quarterly Reports on Form 10-Q, filed with the Securities and Exchange
Commission (“SEC”), and available at www.investors.bestbuy.com.
(2) A reconciliation of the projected adjusted operating income rate, adjusted
effective income tax rate, and adjusted diluted EPS, which are forward-looking
non-GAAP financial measures, to the most directly comparable GAAP financial
measures, is not provided because the company is unable to provide such
reconciliation without unreasonable effort. The inability to provide a
reconciliation is due to the uncertainty and inherent difficulty predicting the
occurrence, the financial impact and the periods in which the non-GAAP
adjustments may be recognized. These GAAP measures may include the impact of
such items as restructuring charges; price-fixing settlements; goodwill and
acquired intangible asset impairments; certain long-lived asset impairments;
gains and losses on disposals of subsidiaries and certain investments;
amortization of definite-lived intangible assets associated with acquisitions;
certain acquisition-related costs; and the tax effect of all such items.
Historically, the company has excluded these items from non-GAAP financial
measures. The company currently expects to continue to exclude these items in
future disclosures of non-GAAP financial measures and may also exclude other
items that may arise (collectively, “non-GAAP adjustments”). The decisions and
events that typically lead to the recognition of non-GAAP adjustments, such as a
decision to exit part of the business or reaching settlement of a legal dispute,
are inherently unpredictable as to if or when they may occur. For the same
reasons, the company is unable to address the probable significance of the
unavailable information, which could be material to future results.
3
Forward-Looking and Cautionary Statements:
This release contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995 as contained in Section 27A of
the Securities Act of 1933 and Section 21E of the Securities Exchange Act of
1934. You can identify these statements by the fact that they use words such as
“anticipate,” “appear,” “approximate,” “assume,” “believe,” “continue,” “could,”
“estimate,” “expect,” “foresee,” “guidance,” “intend,” “may,” “might,”
“outlook,” “plan,” “possible,” “project,” “seek,” “should,” “would,” and other
words and terms of similar meaning or the negatives thereof. Such statements
reflect our current views and estimates with respect to future market
conditions, company performance and financial results, operational investments,
business prospects, our operating model, new strategies and growth initiatives,
the competitive environment, consumer behavior and other events. These
statements involve a number of judgments and are subject to certain risks and
uncertainties, many of which are outside the control of the Company, that could
cause actual results to differ materially from the potential results discussed
in such forward-looking statements. Readers should review Item 1A, Risk Factors,
of our most recent Annual Report on Form 10-K, and any updated information in
subsequent Quarterly Reports on Form 10-Q, for a description of important
factors that could cause our actual results to differ materially from those
contemplated by the forward-looking statements made in this release. Among the
factors that could cause actual results and outcomes to differ materially from
those contained in such forward-looking statements are the following:
macroeconomic pressures in the markets in which we operate (including but not
limited to real GDP growth, inflation, recession, consumer confidence,
employment levels, effects of the government closures, cost of living,
uncertainty over the availability of government benefits, tax rates,
availability of consumer financing, interest rates, housing market conditions,
foreign currency exchange rates, the price of oil, gas and other commodities and
other macroeconomic trends); geopolitical pressures (including issues related to
trade routes, political instability and divisiveness, the potential
implementation of more restrictive trade policies, tariff increases and/or
volatility, the realignment of alliances or the renegotiation of existing trade
agreements); catastrophic events, health crises and pandemics; susceptibility of
the products we sell to technological advancements, product life cycle
fluctuations and changes in consumer preferences; competition (including from
multi-channel retailers, e-commerce business, technology service providers,
traditional store-based retailers, vendors and mobile network carriers, in the
provision of delivery speed and options and with the strategic use of artificial
intelligence); our ability to attract and retain qualified employees and changes
in market compensation rates; our focus on services as a strategic priority; our
reliance on key vendors and mobile network carriers (including product
availability); our ability to maintain positive brand perception and
recognition; our ability to effectively identify, manage and execute enterprise-
wide strategies, such as strategic ventures, alliances or acquisitions; our
ability to effectively manage our infrastructure, real estate portfolio and
market segmentation strategy; interruptions and other factors affecting our
supply chain (impacting our stores or other aspects of our operations); our
utilization of third-party vendors for certain aspects of our operations; risks
associated with the products we sell, including those products sold on our
Marketplace platforms and products under our exclusive brand labels; our
reliance on our information technology systems, internet and telecommunications
access and capabilities; our ability to prevent or effectively respond to a
cyber-attack, privacy or security breach; statutory, regulatory and legal
developments (including statutes and/or regulations related to tax or privacy);
evolving corporate governance and public disclosure regulations and expectations
(including, but not limited to, cybersecurity and corporate responsibility and
sustainability matters); risks arising from our international activities
(including fluctuations in foreign currency exchange rates); failure to meet any
financial performance guidance or other forward-looking statements; failure to
effectively manage our costs; our dependence on cash flows and net earnings
generated during the fourth fiscal quarter; economic or regulatory developments
that might affect our ability to provide attractive promotional financing;
constraints in the banking and capital markets; and changes in our credit
ratings. We caution that the foregoing list of important factors is not
complete. Any forward-looking statements speak only as of the date they are made
and we assume no obligation to update any forward-looking statement that we may
make.
Investor Contact: Media Contact:
Mollie O'Brien Carly Charlson
mollie.obrien@bestbuy.com carly.charlson@bestbuy.com
4
BEST BUY CO., INC.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
($ and shares in millions, except per share amounts)
(Unaudited and subject to reclassification)
Three Augu… August Six August Augu…
Months 1, 2, Mont… 1, 2,
Ended 2026 2025 Ended 2026 2025
──────────────────────────────────────────────────────────────────────────────
Reve… $ 9,779 $ 9,438 $ 18,715 $ 18,2…
Cost
of 7,441 7,244 14,275 13,9…
sales
Gross 2,338 2,194 4,440 4,243
prof…
Gross
prof… 23.9 % 23.2 % 23.7 % 23.3 %
%
Sell…
gene…
and 1,923 1,829 3,664 3,550
admi…
expe…
SG&A 19.7 % 19.4 % 19.6 % 19.5 %
%
Rest… -6 114 -15 223
char…
Oper… 421 251 791 470
inco…
Oper…
inco… 4.3 % 2.7 % 4.2 % 2.6 %
%
Other
inco…
(exp…
Loss
on
disp… — -4 — -4
of
subs…
Inve…
inco… 20 18 39 33
and
other
Inte… -11 -12 -22 -24
expe…
Earn…
befo…
inco…
tax
expe…
and 430 253 808 475
equi…
in
loss
of
affi…
Inco…
tax 116 68 218 87
expe…
Effe…
tax 27.1 % 26.8 % 27.0 % 18.3 %
rate
Equi…
in
loss 1 1 1 —
of
affi…
Net $ 315 $ 186 $ 591 $ 388
earn…
Basic
earn… $ 1.49 $ 0.88 $ 2.80 $ 1.83
per
share
Dilu…
earn… $ 1.48 $ 0.87 $ 2.79 $ 1.82
per
share
Weig…
comm…
shar…
outs…
Basic 211.3 211.5 210.8 211.8
Dilu… 212.7 212.0 212.1 212.5
5
BEST BUY CO., INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
($ in millions)
(Unaudited and subject to reclassification)
August 1, 2026 August 2, 2025
──────────────────────────────────────────────────────────────────────────────
Assets
Current assets
Cash and cash equivalents $ 2,255 $ 1,456
Receivables, net 922 917
Merchandise inventories 6,296 5,816
Other current assets 508 688
Total current assets 9,981 8,877
Property and equipment, net 1,990 2,046
Operating lease assets 2,882 2,816
Goodwill 790 908
Other assets 464 606
Total assets $ 16,107 $ 15,253
Liabilities and equity
Current liabilities
Accounts payable $ 6,026 $ 5,682
Unredeemed gift card liabilities 216 230
Deferred revenue 912 889
Accrued compensation and related 394 448
expenses
Accrued liabilities 763 684
Current portion of operating lease 614 610
liabilities
Current portion of long-term debt 11 10
Total current liabilities 8,936 8,553
Long-term operating lease 2,350 2,292
liabilities
Long-term debt 1,158 1,164
Long-term liabilities 480 528
Equity 3,183 2,716
Total liabilities and equity $ 16,107 $ 15,253
6
BEST BUY CO., INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
($ in millions)
(Unaudited and subject to reclassification)
Six Months Ended August 1, 2026 August 2, 2025
──────────────────────────────────────────────────────────────────────────────
Operating
activities
Net earnings $ 591 $ 388
Adjustments to
reconcile net
earnings to
total cash provided
by operating
activities:
Depreciation and 389 422
amortization
Restructuring -15 223
charges
Stock-based 74 75
compensation
Deferred income 15 45
taxes
Loss on disposal of — 4
subsidiaries
Other, net 1 4
Changes in
operating assets
and
liabilities:
Receivables 119 123
Merchandise -1,079 -717
inventories
Other assets 19 -24
Accounts payable 1,259 693
Income taxes -3 -167
Other liabilities -74 -286
Total cash provided
by operating 1,296 783
activities
Investing
activities
Additions to
property and -344 -341
equipment
Disposal of — -27
subsidiary
Other, net 5 -1
Total cash used in
investing -339 -369
activities
Financing
activities
Repurchase of -36 -165
common stock
Dividends paid -405 -403
Other, net -2 -6
Total cash used in
financing -443 -574
activities
Effect of exchange
rate changes on
cash -3 5
and cash
equivalents
Increase (decrease)
in cash, cash 511 -155
equivalents and
restricted cash
Cash, cash
equivalents and
restricted 2,023 1,868
cash at beginning
of period
Cash, cash
equivalents and
restricted $ 2,534 $ 1,713
cash at end of
period
7
BEST BUY CO., INC.
SEGMENT AND REVENUE CATEGORY INFORMATION
($ in millions)
(Unaudited and subject to reclassification)
Three Augu… August Six August Augu…
Months 1, 2, Mont… 1, 2,
Ended 2026 2025 Ended 2026 2025
──────────────────────────────────────────────────────────────────────────────
Dome…
Segm…
Reve… $ 9,070 $ 8,698 $ 17,319 $ 16,8…
Comp…
sales 4.5 % 1.1 % 3.2 % 0.2 %
%
chan…
Comp…
onli…
sales 5.1 % 5.1 % 3.4 % 3.7 %
%
chan…
Gross $ 2,180 $ 2,033 $ 4,134 $ 3,941
prof…
Gross
prof…
as a 24.0 % 23.4 % 23.9 % 23.4 %
% of
reve…
Adju… $ 1,776 $ 1,682 $ 3,372 $ 3,261
SG&A1
Adju…
SG&A
as a 19.6 % 19.3 % 19.5 % 19.4 %
% of
reve…
Adju…
oper… $ 404 $ 351 $ 762 $ 680
inco…
Adju…
oper…
inco… 4.5 % 4.0 % 4.4 % 4.0 %
as a
% of
reve…
Inte…
Segm…
Reve… $ 709 $ 740 $ 1,396 $ 1,380
Comp…
sales -1.8 % 7.6 % 1.3 % 3.5 %
%
chan…
Gross $ 158 $ 161 $ 306 $ 302
prof…
Gross
prof…
as a 22.3 % 21.8 % 21.9 % 21.9 %
% of
reve…
Adju… $ 145 $ 143 $ 288 $ 280
SG&A1
Adju…
SG&A
as a 20.5 % 19.3 % 20.6 % 20.3 %
% of
reve…
Adju…
oper… $ 13 $ 18 $ 18 $ 22
inco…
Adju…
oper…
inco… 1.8 % 2.4 % 1.3 % 1.6 %
as a
% of
reve…
(1) Represents segment Adjusted SG&A and segment Adjusted operating income as
reported in accordance with Accounting Standards Codification 280, Segment
Reporting .
(2) Segment Adjusted SG&A as a % of revenue is calculated as segment Adjusted
SG&A divided by segment Revenue.
(3) Segment Adjusted operating income as a % of revenue is calculated as segment
Adjusted operating income divided by segment Revenue.
Reven… Compa…
Mix Sales
Three August August Three August Augu…
Months 1, 2, Months 1, 2,
Ended 2026 20251 Ended 2026 20251
──────────────────────────────────────────────────────────────────────────────
Dome…
Segm…
Comp…
and 46 % 44 % 6.8 % 3.8 %
Mobi…
Phon…
Cons… 27 % 27 % 5.6 % -5.2 %
Elec…
Appl… 12 % 12 % 0.2 % -9.2 %
Serv… 9 % 9 % 6.4 % 3.7 %
Ente… 6 % 7 % -6.3 % 39.3 %
Other — % 1 % -21.1 % -18.4 %
Total 100 % 100 % 4.5 % 1.1 %
Inte…
Segm…
Comp…
and 47 % 46 % 2.1 % 9.1 %
Mobi…
Phon…
Cons… 28 % 26 % 2.5 % 0.9 %
Elec…
Appl… 10 % 11 % -9.9 % -6.1 %
Serv… 7 % 7 % 0.2 % 10.7 %
Ente… 7 % 9 % -25.2 % 57.5 %
Other 1 % 1 % -5.9 % -7.1 %
Total 100 % 100 % -1.8 % 7.6 %
(1) Beginning in Q1 FY27, the company reclassified certain amounts within its
revenue categories to better align with management's current view of the
business. The reclassification primarily relates to credit card revenue and
digital content revenue (including digital gaming, software and subscriptions)
that were previously included in various product revenue categories and,
following the reclassification, are now included within services revenue. To
ensure its financial results are comparable, the company has recast revenue,
revenue mix and comparable sales by revenue category for FY25 and FY26, as well
as for each quarter within such fiscal years, to conform with this
reclassification. Refer to Exhibit 99.2 in the company's Current Report on Form
8-K filed on May 28, 2026, for additional information.
8
BEST BUY CO., INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
($ in millions, except per share amounts)
(Unaudited and subject to reclassification)
The following information provides reconciliations of the most comparable
consolidated financial measures presented in accordance with accounting
principles generally accepted in the U.S. (GAAP financial measures) to presented
consolidated adjusted financial measures (non-GAAP financial measures). The
company believes that non-GAAP financial measures, when reviewed in conjunction
with GAAP financial measures, can provide more information to assist investors
in evaluating current period performance and in assessing future performance.
For these reasons, internal management reporting also includes non-GAAP
financial measures. Generally, presented non-GAAP financial measures include
adjustments for items such as restructuring charges, goodwill and acquired
intangible asset impairments, certain long-lived asset impairments, price-fixing
settlements, gains and losses on disposals of subsidiaries and certain
investments, amortization of definite-lived intangible assets associated with
acquisitions, certain acquisition-related costs and the tax effect of all such
items. In addition, certain other items may be excluded from non-GAAP financial
measures when the company believes this provides greater clarity to management
and investors. These non-GAAP financial measures should be considered in
addition to, and not superior to or as a substitute for, the GAAP financial
measures presented in this earnings release and the company’s financial
statements and other publicly filed reports. Non-GAAP financial measures as
presented herein may not be comparable to similarly titled measures used by
other companies.
Three Augu… August Six August Augu…
Months 1, 2, Mont… 1, 2,
Ended 2026 2025 Ended 2026 2025
──────────────────────────────────────────────────────────────────────────────
SG&A $ 1,923 $ 1,829 $ 3,664 $ 3,550
% of 19.7 % 19.4 % 19.6 % 19.5 %
reve…
Inta…
asset -2 -4 -4 -9
amor…
Adju… $ 1,921 $ 1,825 $ 3,660 $ 3,541
SG&A
% of 19.6 % 19.3 % 19.6 % 19.5 %
reve…
Oper… $ 421 $ 251 $ 791 $ 470
inco…
% of 4.3 % 2.7 % 4.2 % 2.6 %
reve…
Inta…
asset 2 4 4 9
amor…
Rest… -6 114 -15 223
char…
Adju…
oper… $ 417 $ 369 $ 780 $ 702
inco…
% of 4.3 % 3.9 % 4.2 % 3.9 %
reve…
Effe…
tax 27.1 % 26.8 % 27.0 % 18.3 %
rate
Inta…
asset - % - % - % 0.2 %
amor…
Rest… - % 0.9 % - % 8.7 %
char…
Loss
on
disp… - % 0.1 % - % 0.2 %
of
subs…
Adju…
effe… 27.1 % 27.8 % 27.0 % 27.4 %
tax
rate
9
Th… Au… Th… Aug…
Mo… 1, Mo… 2,
En… 20… En… 2025
──────────────────────────────────────────────────────────────────────────────
Pr… Net Per Pr… Net Per
Ea… of Sh… Ea… of Sha…
Ta… Ta…
D… $ 1.… $ 0.…
E…
I…
a… $ 2 $ 1 0.… $ 4 $ 3 0.…
a…
R… -6 -5 -0… 114 80 0.…
c…
L…
on
d… — — — 4 2 0.…
of
s…
A…
d… $ 1.… $ 1.…
E…
Six Six
Mo… Mo…
En… En…
Au… Au…
1, 2,
20… 20…
Pr… Net Per Pr… Net Per
Ea… of Sh… Ea… of Sha…
Ta… Ta…
D… $ 2.… $ 1.…
E…
I…
a… $ 4 $ 3 0.… $ 9 $ 7 0.…
a…
R… -15 -12 -0… 223 119 0.…
c…
L…
on
d… — — — 4 2 0.…
of
s…
A…
d… $ 2.… $ 2.…
E…
(1) Represents the non-cash amortization of definite-lived intangible assets
associated with acquisitions, including customer relationships and tradenames.
(2) Amounts for the three and six months ended August 1, 2026, primarily relate
to subsequent adjustments to previously planned organizational changes. Amounts
for the three and six months ended August 2, 2025, primarily relate to charges
from a labor and store optimization restructuring initiative that commenced in
Q2 FY26 and a restructuring initiative within the company’s Best Buy Health
business that commenced in Q1 FY26.
(3) Primarily represents the loss on disposal of a component of our Best Buy
Health business.
(4) The non-GAAP adjustments primarily relate to the U.S. As such, the
forecasted annual income tax on the U.S. non-GAAP adjustments is calculated
using the statutory tax rate of 24.5%, adjusted for tax benefits discrete to the
period.
10