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May 03

Best Buy Q1 2026 Earnings Report

Best Buy reported mixed results with slightly declining revenue and earnings compared to the prior year.

Key Takeaways

Best Buy delivered in-line revenue and stronger-than-expected adjusted operating income in Q1 FY26, despite a slight decline in comparable sales and net income.

Enterprise revenue declined to $8.77B from $8.85B year-over-year.

Adjusted EPS came in at $1.15, above GAAP EPS of $0.95.

Net income dropped to $202M due to restructuring charges.

Online domestic sales increased by 2.1%, supporting overall performance.

Total Revenue
$8.77B
Previous year: $8.85B
-0.9%
EPS
$1.15
Previous year: $1.2
-4.2%
Enterprise comp. sales
-0.7%
Previous year: -6.1%
-88.5%
Domestic comp. sales
-0.7%
Previous year: -6.3%
-88.9%
International comp. sales
-0.7%
Previous year: -3.3%
-78.8%
Gross Profit
$2.05B
Previous year: $2.06B
-0.4%
Cash and Equivalents
$1.15B
Previous year: $1.21B
-5.5%
Free Cash Flow
-$132M
Previous year: $4M
-3400.0%
Total Assets
$14.1B
Previous year: $14.8B
-4.2%

Best Buy

Best Buy

Best Buy Revenue by Segment

Best Buy Revenue by Geographic Location

Forward Guidance

Best Buy expects full-year revenue between $41.1B and $41.9B, and adjusted EPS between $6.15 and $6.30, reflecting tariff impacts and cautious consumer behavior.

Positive Outlook

  • FY26 adjusted EPS guided at $6.15 to $6.30.
  • Adjusted operating income rate expected to remain at 4.2%.
  • Stable adjusted tax rate of approximately 25.0%.
  • Online sales momentum in computing and mobile categories.
  • Capital expenditures to remain steady at $700M.

Challenges Ahead

  • Enterprise revenue guidance lowered from prior range.
  • Comparable sales expected to range between -1% and +1%.
  • Tariff impact factored into updated guidance.
  • Q2 comparable sales expected to decline slightly.
  • Lower profit-sharing revenue from private label credit cards.

Revenue & Expenses

Visualization of income flow from segment revenue to net income