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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.
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