Best Buy Earnings Beat, Guidance Raised
Best Buy earnings beat forecasts and lifted FY27 revenue to $42.3-$42.8B and adjusted EPS to $6.70-$6.90, altering near-term trader positioning.
KEY TAKEAWAYS
- Beat Q2; raised FY27 revenue to $42.3-$42.8B and adjusted EPS to $6.70-$6.90.
- Enterprise revenue about $9.8B; comparable sales rose 4.1% on computing strength.
- Free cash flow roughly $952M and $239M returned to shareholders reinforce turnaround.
HIGH POTENTIAL TRADES SENT DIRECTLY TO YOUR INBOX
Add your email to receive our free daily newsletter. No spam, unsubscribe anytime.
Best Buy Co., Inc. reported earnings for the 13 weeks ended Aug. 1, 2026, that topped expectations and led the company to raise its full-year revenue and profit outlook. Management cited stronger computing sales and an AI-driven device-upgrade cycle as key drivers behind the improved performance.
Q2 Results and Updated Guidance
Best Buy reported enterprise revenue of about $9.779 billion for the quarter, with enterprise comparable sales rising 4.1%. GAAP diluted earnings per share reached $1.48, while adjusted diluted EPS was $1.47, representing a double-digit increase from the prior year.
The company raised its full-year guidance to enterprise revenue between $42.3 billion and $42.8 billion, lifted comparable-sales growth to a range of 1.9% to 3.0%, and increased projected adjusted diluted EPS to $6.70–$6.90. Management attributed the revisions to a strong first half and stronger computing sales, supported by an AI-driven device-upgrade cycle and expanding contributions from Marketplace and advertising revenue.
Margins, Cash Flow, and Shareholder Returns
Gross profit for the quarter was about $2.338 billion, pushing the gross margin to roughly 23.9%, an improvement of about 70 basis points year over year. For the first half of fiscal 2027, Best Buy generated approximately $18.7 billion in revenue and $4.44 billion in gross profit. Free cash flow nearly doubled to about $952 million from $442 million a year earlier, strengthening the company’s cash position.
During the quarter, Best Buy returned about $239 million to shareholders through roughly $203 million in dividends and $36 million in share repurchases.
Management framed the outlook lift as reflecting the strong first half, robust computing sales, and the AI-driven upgrade cycle, with Marketplace and advertising revenue contributing to margin gains. The improved guidance and cash flow position the company favorably as it prepares for a leadership transition to incoming CEO Jason Bonfig. Customers remain focused on value and discounts even as spending on technology upgrades continues, creating an immediate earnings catalyst for investors monitoring the turnaround.
