Best Buy Co., Inc. (BBY) Earnings
Best Buy Co., Inc. is expected to report next earnings on November 24, 2026 (in NaN days), with a consensus EPS estimate of $1.45. BBY has beaten EPS estimates in 11 of its last 12 reported quarters (average surprise +5.6% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Aug 27, 2026 | $1.39 | $1.47 | +5.8% | $9.8B | +2.0% |
| May 28, 2026 | $1.23 | $1.28 | +4.1% | $8.9B | +1.3% |
| Mar 3, 2026 | $2.48 | $2.61 | +5.2% | $13.8B | +52.3% |
| Nov 25, 2025 | $1.31 | $1.40 | +7.0% | $9.7B | +1.2% |
| Aug 28, 2025 | $1.21 | $1.28 | +5.6% | $9.4B | +2.4% |
| May 29, 2025 | $1.10 | $1.15 | +4.4% | $8.8B | -0.3% |
| Mar 4, 2025 | $2.42 | $2.58 | +6.7% | $13.9B | +1.7% |
| Nov 26, 2024 | $1.30 | $1.26 | -3.2% | $9.4B | -1.7% |
| Aug 29, 2024 | $1.16 | $1.34 | +15.5% | $9.3B | +0.7% |
| May 30, 2024 | $1.08 | $1.20 | +11.2% | $8.8B | -1.2% |
| Feb 29, 2024 | $2.52 | $2.72 | +8.2% | $14.6B | +1.0% |
| Nov 21, 2023 | $1.18 | $1.29 | +9.4% | $9.8B | -31.7% |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q2 FY2027 · August 27, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
- **Leadership Transition**: CEO Corie Barry is stepping down after 27 years; Jason Bonfig assumes the CEO role on November 1st. Anne Braman joins as new CFO. - **Strategic Priorities**: Four core pillars: advancing Best Buy as a retail media/tech company, expanding reach, elevating customer experience, and maintaining a human-powered focus. - **Marketplace Growth**: U.S. marketplace GMV reached ~$300 million in Q2; full-year guidance raised to $1.3 billion. International sellers will be added later this quarter. - **Retail Media (Ads)**: On track for 10% growth year-over-year, building on $900 million collected last year. Contributing to gross profit rate expansion. - **Store Format Innovation**: Small-format stores acting as customer acquisition engines for omnichannel engagement. Large-format stores are reallocating space to high-value experiences like 'Meta Labs' (900 sq ft dedicated AI/VR spaces). - **Category Highlights**: - Computing: 10th consecutive quarter of positive comps, driven by upgrade cycles and innovation. - Home Theater: Second biggest comp driver; TV sales grew >10% YoY, aided by RGB TV launch and multi-year replacement cycle expectations. - Emerging Categories: Sales doubled YoY, including AI glasses, trading cards, and health rings. - Mobile Phones: Sixth consecutive quarter of growth due to carrier partnerships. - Major Appliances: Slight sales growth driven by pricing, availability, and delivery speed improvements. - **Digital & AI Initiatives**: Launch of 'AskBlue,' a conversational AI assistant. Commerce integration with OpenAI allows purchases directly within ChatGPT.
Guidance
- **Full Year Fiscal 2027 Guidance Raised**: - Revenue: $42.3 billion to $42.8 billion. - Comparable Sales Growth: 1.9% to 3.0%. - Adjusted Operating Income Rate: 4.4% to 4.5% (expansion of 10-20 basis points). - Adjusted Diluted EPS: $6.70 to $6.90. - Capital Expenditures: ~$750 million. - **Second Half Assumptions**: - Enterprise comparable sales growth expected at 1% to 3%. - Gross profit rate improvement of 30-40 basis points, driven by Ads, Marketplace, and IEPA tariff refunds. - SG&A expense increase of ~20 basis points as a percentage of revenue, largely due to incentive compensation tied to higher OI dollars.
Segment performance
The transcript does not provide a breakdown of financial performance by specific product segment (e.g., Computing, Home Theater) in terms of absolute revenue contribution percentages. It reports consolidated Enterprise Revenue of $9.8 billion (+3.6% YoY). Domestic revenue was $9.1 billion (+4.3%), while International revenue was $709 million (-4.2%). Adjusted operating income rate was 4.3%, and adjusted diluted EPS was $1.47 (+15% YoY).
Risks & headwinds
- **Memory Cost Increases**: Industry-wide memory cost hikes are flowing into product assortments, leading to ASP increases in computing (mid-teens) and unit declines (high single digits). - **Competitive Pressure**: Intense competition in appliances and home theater requires continued investment in pricing, service, and experience, which may pressure margins if not offset by other streams. - **Consumer Behavior**: Customers remain value-focused and sensitive to big-ticket price increases, though they still spend on innovation and necessary replacements. - **Inventory Management**: Dynamic supply chain conditions require careful inventory positioning, particularly in computing, to mitigate cost increases without overstocking.
Analyst Q&A
Q: Analyst asked about the aggregate size of emerging categories (AI glasses, trading cards, etc.) and the scalability of small-format store concepts. /
A: These categories represent approximately one point of comparable sales growth. Small-format stores are performing well as customer acquisition engines that drive omnichannel adoption, though the strategy is early-stage. Meta’s strong performance justifies larger physical footprints (900 sq ft labs), while other emerging categories may rely more on digital or smaller physical presence.
Q: Analyst questioned the deceleration in July comps and whether it reflected tax refund timing or weaker demand, plus inquiries on incremental margin flow-through given rising SG&A. /
A: The July slowdown was primarily due to lapping the prior year's Switch 2 launch and Prime Day timing shifts, not weak demand. August trends rebounded to the high end of guidance. SG&A increased largely due to $130M in incentive compensation linked to higher-than-expected OI, which is expected to normalize next year. Long-term focus remains on balancing revenue share growth with rate improvement.
Q: Analyst sought clarity on second-half headwinds/tailwinds, specifically Windows 10 EOL impact on computing and GTA VI on gaming, plus inventory management plans. /
A: Computing growth is expected to soften in H2 as the company laps the strong Windows 10 EOL-driven quarter of last year. GTA VI is expected to boost hardware and software sales in Q4. Inventory strategy remains disciplined at four days of supply, with selective early buying in computing to hedge against price increases, but overall turnover remains fast.
Q: Analyst asked if investing proceeds from high-margin ads/marketplace into competitive categories like appliances undermines gross margin outlook. /
A: Management emphasized that investments extend beyond price to include experience and service (e.g., faster delivery, installation), which drives loyalty. Despite appliance margin pressure, the combined growth of Ads and Marketplace provides sufficient flow-through to maintain the targeted 30-40 bps gross profit rate expansion, even after accounting for tariff refunds.
Q: Analyst inquired about memory price elasticity in computing, transportation/fuel costs, and ASP/unit dynamics in H2. /
A: Memory cost increases are specific to computing, causing mid-teens ASP growth and high-single-digit unit declines, but demand remains resilient due to long replacement cycles and trade-in/financing tools. Transportation costs are expected to be neutral for the full year. ASPs in computing are expected to stabilize at current levels, offset by mix shifts into lower-priced items like trading cards.