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Best Buy (BBY) investor relations material

Best Buy Q2 2026 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q2 2026 earnings summary28 Aug, 2025

Executive summary

  • Q2 revenue reached $9.44B, up 1.6% year-over-year, with comparable sales growth of 1.6%, the highest in three years.

  • Adjusted diluted EPS was $1.28, down from $1.34 last year; GAAP diluted EPS was $0.87.

  • Growth was driven by gaming, computing, mobile phones, and new technology innovation, with strong omnichannel and online performance.

  • Net earnings for Q2 were $186M, down from $291M last year, primarily due to $114M in restructuring charges.

  • Launched Best Buy marketplace, expanding online assortment and introducing new brands and categories.

Financial highlights

  • Gross profit margin was 23.2% in Q2, down from 23.5% last year; domestic gross profit rate was 23.4%, international 21.8%.

  • Adjusted operating income was $369M (3.9% of revenue), down from $381M (4.1%) last year; operating income was $251M (2.7%).

  • SG&A expenses were $1.83B in Q2, 19.4% of revenue.

  • Returned $568M to shareholders year-to-date through dividends and share repurchases.

  • Cash and cash equivalents stood at $1.46B at quarter-end.

Outlook and guidance

  • FY26 guidance maintained: revenue $41.1B–$41.9B, comparable sales -1% to +1%, adjusted operating income rate ~4.2%, adjusted EPS $6.15–$6.30, capex ~$700M.

  • Q3 comparable sales growth expected to be similar to Q2; Q3 adjusted operating income rate to be flat year-over-year at 3.7%.

  • Trending toward the higher end of sales guidance, but profitability guidance unchanged due to margin pressures.

  • Management expects to reduce traditional domestic store count by 5–10 stores in FY2026.

  • No material impact anticipated from recent tax legislation; supply chain and tariff risks remain.

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Frequently asked questions

Big Box Retailer of Consumer Electronics

Best Buy Company is an American big-box retailer focused on consumer electronics. The company operates in the USA and Canada but has over the years had a presence in Mexico, Asia, and parts of Europe. Best Buy operates large retail spaces selling a wide array of different products, with everything from electric toothbrushes to TV’s. It is headquartered in Richfield, Minnesota, and the shares of the company trade on the NYSE.

Sound of Music

Best Buy Co., Inc. is an American multinational consumer electronics retailer that was founded by Richard M. Schulze and James Wheeler in 1966. Originally, it was named "Sound of Music" and started as a small electronics store in Saint Paul, Minnesota. The focus at the time was primarily on home and car stereo systems. Recognizing the potential of a superstore format, the company rebranded as "Best Buy" and began to shift its focus towards a wider range of electronics. Over the years, Best Buy expanded its footprint across the US and their big-box store format and blue-yellow color theme became iconic.

Consumer Electronics

Best Buy’s inventory includes consumer electronics like televisions, audio systems, and cameras, as well as computers, tablets, and related peripherals such as printers, hard drives, and software. The retailer also carries mobile phones and their accompanying plans from major carriers such as AT&T, Verizon, and others. Additionally, Best Buy provides an assortment of appliances, both large and small, from refrigerators and washing machines to blenders and coffee makers. The store has also diversified its product range to include smart home devices like thermostats, smart speakers, and home security systems. Moreover, Best Buy sells a variety of physical and digital media, including Blu-rays, DVDs, and music.

Services

Best Buy offers several notable services to assist its customers post-purchase. One primary service is the Geek Squad, which provides technical support and repair for a range of electronics, from computers to televisions. Additionally, Best Buy's Home and Business Services handle the delivery, installation, and potential repair needs of major appliances, ensuring that larger purchases are set up correctly.

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