Best Buy (BBY) Q2 FY27: Strong Growth and Upgraded Guidance — Positive Outlook

Best Buy Co., Inc. (NYSE: BBY) reported its second-quarter results for the fiscal year 2027, revealing a notable performance compared to the previous year. The company achieved a revenue increase of $341 million or +3.6% YoY, with total revenue reaching $9,779 million in Q2 FY27, up from $9,438 million in Q2 FY26. This growth was driven by a 4.1% increase in comparable sales, significantly higher than the 1.6% growth recorded in the same quarter last year.

This quarter's results are a positive development for shareholders, reflecting effective management strategies and a favorable demand environment. The substantial increase in diluted earnings per share (EPS) to $1.48, up 70% from $0.87 in the prior year, underscores the company's improved profitability. Additionally, the adjusted diluted EPS rose 15% to $1.47, compared to $1.28 last year.

Key Financial Metrics:

• Total Revenue: $9,779 million (Q2 FY27) vs. $9,438 million (Q2 FY26) — +3.6% YoY
• Comparable Sales Growth: 4.1% (Q2 FY27) vs. 1.6% (Q2 FY26)
• Diluted EPS: $1.48 (Q2 FY27) vs. $0.87 (Q2 FY26) — +70% YoY
• Adjusted Diluted EPS: $1.47 (Q2 FY27) vs. $1.28 (Q2 FY26) — +15% YoY
• Operating Income: $421 million (Q2 FY27) vs. $251 million (Q2 FY26) — +67.3% YoY
• Operating Income as a % of Revenue: 4.3% (Q2 FY27) vs. 2.7% (Q2 FY26)

Best Buy's domestic segment performed particularly well, with domestic revenue increasing 4.3% to $9,070 million, driven by a 4.5% increase in comparable sales. The company also reported a 5.1% growth in domestic online sales, maintaining the same percentage as the previous year.

Dividend and Share Buyback:

In Q2 FY27, Best Buy returned $239 million to shareholders through dividends of $203 million and share repurchases of $36 million. The board of directors has authorized a regular quarterly cash dividend of $0.96 per common share, payable on October 8, 2026, to shareholders of record as of September 17, 2026. The company expects to spend approximately $300 million on share repurchases during FY27.

Guidance Update:

Best Buy has raised its full-year FY27 guidance, now expecting:

• Revenue: $42.3 billion to $42.8 billion (previously $41.2 billion to $42.1 billion)
• Comparable Sales Growth: 1.9% to 3.0% (previously (1.0%) to 1.0%)
• Adjusted Diluted EPS: $6.70 to $6.90 (previously $6.30 to $6.60)

Forward Catalyst:

Looking ahead, investors should monitor Best Buy's performance in Q3 FY27, where the company expects comparable sales to be in the range of 1.0% to 3.0% and an adjusted operating income rate of 4.1% to 4.2%. The upcoming quarter will be crucial as the company continues to navigate a competitive retail landscape while leveraging its investments in technology and customer service.

In conclusion, Best Buy's Q2 FY27 results demonstrate a strong rebound and effective strategic execution, positioning the company favorably for continued growth. The raised guidance and robust earnings reflect a positive trajectory, making this a commendable quarter for shareholders.

Note: All amounts in the following tables are in millions.

BEST BUY CO., INC. CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

($ and shares in millions, except per share amounts)

Three Months Ended	August 1, 2026	August 2, 2025	Six Months Ended	August 1, 2026	August 2, 2025
Revenue	$9,779	$9,438	$18,715	$18,284
Cost of sales	7,441	7,244	14,275	13,914
Gross profit	2,338	2,194	4,440	4,243
Gross profit %	23.9%	23.2%	23.7%	23.3%
Selling, general and administrative expenses	1,923	1,829	3,664	3,550
SG&A %	19.7%	19.4%	19.6%	19.5%
Restructuring charges	-6	114	-15	223
Operating income	421	251	791	470
Operating income %	4.3%	2.7%	4.2%	2.6%
Other income (expense)	20	18	39	33
Interest expense	-11	-12	-22	-24
Earnings before income tax expense and equity in loss of affiliates
Income tax expense
Effective tax rate	27.1%	26.8%	27.0%	18.3%
Equity in loss of affiliates	1	1	1
Net earnings	$315	$186	$591	$388
Basic per share	$1.49	$0.88	$2.80	$1.83
Diluted per share	$1.48	$0.87	$2.79	$1.82
Weighted average common shares outstanding	211.3	211.5	210.8	211.8
Diluted	212.7	212.0	212.1	212.5

BEST BUY CO., INC. CONDENSED CONSOLIDATED BALANCE SHEETS

($ in millions)

	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 expenses	394	448
Accrued liabilities	763	684
Current portion of operating lease liabilities	614	610
Current portion of long-term debt	11	10
Total current liabilities	8,936	8,553
Long-term operating lease liabilities	2,350	2,292
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

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