Best Buy Co. Inc
Q2 2027 Earnings
Market Reaction
Did BBY Beat Earnings? Q2 2027 Results
Best Buy posted a convincingly strong second quarter for fiscal 2027, beating Wall Street on both the top and bottom lines and extending its consecutive EPS beat streak to five quarters. Adjusted diluted EPS came in at $1.47, ahead of the $1.36 consensus by 8.15%, while revenue of $9.78 billion topped estimates by 2.29% and grew 3.6% year over year. The primary engine behind the beat was the Domestic segment, where comparable sales rose 4.5%, fueled by strength in computing, home theater, and emerging categories including AI glasses, with online revenue reaching $3.00 billion and representing 33.1% of Domestic sales. Domestic gross profit rate expanded to 24.0% from 23.4%, aided by growth in Best Buy Ads and Marketplace initiatives. Ahead of the print, at least one analyst had flagged positive credit card data as a reason to expect upside, and the results bore that out. Looking ahead, the company raised its full-year adjusted diluted EPS guidance to $6.70 to $6.90 and lifted its revenue outlook to $42.30 billion to $42.80 billion.
- Comparable sales growth of 4.1% enterprise-wide, 4.5% Domestic
- Computing and home theater were largest weighted growth drivers
- Emerging categories such as AI glasses and trading cards contributed to growth
- Growth in Marketplace and Best Buy Ads improved Domestic gross profit rate
- IEEPA tariff refunds of approximately $34 million boosted gross profit
- Domestic online revenue grew 5.1% on a comparable basis to $3.00 billion
- Consumer electronics comparable sales up 5.6%, computing and mobile phones up 6.8%
“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. We drove growth across almost all our major product categories as well as continued strong performance in our Best Buy Ads and Marketplace initiatives.”
Best Buy CEO, on the earnings call
Forward Guidance & Outlook
Best Buy raised its FY27 guidance: revenue of $42.3 billion to $42.8 billion (from $41.2B-$42.1B), comparable sales growth of 1.9% to 3.0% (from -1.0% to 1.0%), adjusted operating income rate of 4.4% to 4.5% (from 4.3%-4.4%), adjusted effective tax rate of approximately 25.5% (unchanged), adjusted diluted EPS of $6.70 to $6.90 (from $6.30-$6.60), and capital expenditures of approximately $750 million (unchanged). For Q3 FY27, the company expects comparable sales of 1.0% to 3.0% and adjusted operating income rate of 4.1% to 4.2%. The company expects approximately $300 million in share repurchases during FY27.
BBY YoY Financials
BBY Revenue by Segment
BBY Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.