Best Buy (BBY) Q1 2026 earnings summary

Executive summary

• Q1 FY26 revenue was $8.77B, down 0.9% year-over-year, with comparable sales declining 0.7% and adjusted operating income rate flat at 3.8%.

• Adjusted EPS was $1.15, down from $1.20 in the prior year; GAAP diluted EPS was $0.95, with net earnings of $202M, down from $246M.

• Online sales grew 2.1% year-over-year, now representing nearly 32% of domestic sales.

• Customer behavior remains value-focused and resilient amid inflation, with willingness to spend on innovation.

• $109M in restructuring charges were incurred, mainly related to Best Buy Health and China sourcing initiatives.

Financial highlights

• Gross profit was $2.05B, with a gross profit rate of 23.4% (up 10 bps year-over-year); domestic gross profit rate rose to 23.5%, international fell to 22%.

• Adjusted SG&A decreased $13M domestically, aided by a favorable indirect tax settlement; SG&A expenses were $1.72B, 19.6% of revenue.

• Cash and cash equivalents at quarter-end were $1.15B, down from $1.58B at the start of the quarter.

• Cash provided by operating activities was $34M, down from $156M in the prior year.

• $302M returned to shareholders in Q1 via $202M in dividends and $100M in share repurchases.

Outlook and guidance

• FY26 revenue guidance: $41.1–$41.9B; comparable sales expected between -1% and +1%; adjusted operating income rate projected at ~4.2%; adjusted EPS guidance of $6.15–$6.30.

• Capital expenditures expected at $700M; $300M planned for share repurchases.

• Q2 comparable sales expected to be slightly down, with adjusted operating income rate at ~3.6%.

• Management expects continued macroeconomic uncertainty, including tariff risks and consumer price pressures.

• Domestic store count is expected to decrease by 5–10 locations in FY26.