Best Buy Earnings Show Strength; Q2 Sales Outlook Upbeat

Best Buy Co., Inc. (NYSE: BBY) reported Q1 FY27 results that lifted Best Buy earnings year over year, the company said in a press release on May 28, 2026, and projected second-quarter sales above analysts’ expectations on strength in gaming, computing, mobile, and growth in advertising and marketplace channels.

Quarterly Results and Drivers

For the 13 weeks ended May 2, 2026, Best Buy reported enterprise revenue of $8.9 billion, up 1.9% from the prior year, marking its first year-over-year sales increase since the pandemic. Enterprise comparable sales rose 2.0%, reversing a 0.7% decline in Q1 FY26. Domestic revenue reached $8.2 billion with comparable sales up 1.8%, while international revenue totaled $687 million with comparable sales rising 3.1%. The domestic segment remained the primary contributor to revenue and earnings.

Profitability improved due to a better product mix, stronger gross margins, and disciplined cost control. The company exceeded analysts’ expectations on both revenue and earnings per share. Management identified gaming and computing as the largest growth drivers, supported by solid smartphone demand. Declines in appliances and softness in some home-theater categories partially offset these gains.

Best Buy also noted early momentum from its retail-media advertising and third-party online marketplace, which added incremental revenue and profit. The chief executive said, “We are pleased to report positive comparable sales growth this quarter, driven by strong demand in gaming, computing and mobile phones and early momentum from our advertising and marketplace businesses.”

Guidance and Strategic Shifts

The company provided quantitative guidance for Q2 FY27, including enterprise revenue, comparable sales, and non-GAAP diluted earnings per share. The outlook assumes steady consumer demand for laptops, smartphones, and gaming, continued growth in advertising and marketplace channels, and benefits from ongoing cost discipline. It also acknowledges ongoing softness in large appliances and some home-theater categories.

Best Buy framed FY27 as a year of modest top-line growth with improving profitability driven by a shift toward higher-margin services, advertising, and marketplace channels. Management emphasized priorities to expand the online marketplace, scale advertising solutions leveraging customer data and digital real estate, and maintain a lean cost structure following earlier efficiency initiatives.

The company disclosed no new mergers, regulatory approvals, or government investigations, focusing near term on executing marketplace and retail-media initiatives alongside continued cost discipline to sustain margin gains.