Best Buy Co. Inc
Q2 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +2.66%.
Did BBY Beat Earnings? Q2 2026 Results
Best Buy posted a solid second quarter for fiscal 2026, with adjusted diluted EPS of $1.28 beating the $1.2248 consensus by 4.51% and revenue of $9.44 billion topping estimates by 2.23% as the retailer delivered its strongest comparable sales growth in three years. Total revenue rose 1.6% year over year, lifted by a standout performance in gaming and computing that propelled Domestic comparable sales up 1.1%, while the International segment surged 7.6% on comparable basis, aided by new Best Buy Express locations in Canada. The Entertainment category was a particular bright spot, posting 37.5% comparable growth domestically and fueling optimism about the company's <a href="https://247wallst.com/investing/2026/03/03/best-buys-leaner-cost-structure-drives-post-earnings-rally/">ongoing cost optimization efforts</a>. Those gains, however, came alongside gross margin compression — the gross profit rate slipped to 23.2% from 23.5% — and $114 million in restructuring charges that dragged GAAP EPS sharply lower. Management reiterated full-year guidance of $41.1 billion to $41.9 billion in revenue and adjusted EPS of $6.15 to $6.30, noting the company is trending toward the higher end of the sales range while keeping a cautious eye on potential tariff headwinds in the back half.
- Comparable sales growth of 1.6%, highest in three years
- Gaming, computing, and mobile phones drove the largest comparable sales increases in the Domestic segment
- International comparable sales growth of 7.6% driven by strong performance and new Best Buy Express locations in Canada
- Domestic online revenue increased 5.1% on a comparable basis, reaching 32.8% of total Domestic revenue
- Entertainment category saw 37.5% domestic comparable sales growth and 57.3% international comparable sales growth
- New technology innovation and strong vendor partnerships
- Strong customer response to back-to-school sales events continuing into August
“We delivered comparable sales growth of 1.6% in the second quarter, our highest growth in three years. This better-than-expected sales growth was driven by a mix of new technology innovation, our relentless focus on a seamless omni-channel customer experience and our strong vendor partnerships.”
Best Buy CEO, on the earnings call
Forward Guidance & Outlook
Best Buy reiterated its FY26 full-year guidance: revenue of $41.1B to $41.9B, comparable sales of -1.0% to 1.0%, adjusted operating income rate of approximately 4.2%, adjusted effective income tax rate of approximately 25.0%, adjusted diluted EPS of $6.15 to $6.30, and capital expenditures of approximately $700 million. For Q3, the company expects comparable sales growth similar to Q2's 1.6% and adjusted operating income rate similar to last year's Q3 rate of 3.7%. Management noted the company is trending toward the higher end of its sales range but is maintaining guidance given uncertainty around potential tariff impacts in the back half of the year.
BBY YoY Financials
BBY Revenue by Segment
BBY Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.