May 28, 2026

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Best Buy Co., Inc. (NYSE: BBY) reported first-quarter fiscal 2027 results above expectations, supported by comparable sales growth, stronger EPS, operating margin expansion, and continued momentum in Best Buy Ads and Marketplace.
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Best Buy is a consumer electronics retailer selling computers, appliances, gaming products, mobile phones, entertainment devices, services, and technology solutions through stores and digital channels.
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The company reported adjusted EPS of $1.28, above estimates of $1.22, representing a 4.9% earnings surprise. Revenue came in at $8.94 billion, above estimates of $8.81 billion, with revenue growth of 1.9%.

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Comparable Sales Improved

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Best Buy reported enterprise comparable sales growth of 2.0%.
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Domestic comparable sales increased 1.8%, while international comparable sales rose 4.7%. Domestic online comparable sales increased 1.4%, with online revenue representing 31.7% of domestic revenue.

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Revenue Increased

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Enterprise revenue was $8.94 billion, up from $8.77 billion in the prior-year quarter.
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Domestic revenue increased to $8.25 billion, while international revenue rose to $687 million. The company said gaming, computing, mobile phones, and services were the biggest domestic comparable sales drivers, partially offset by weakness in appliances.

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EPS Beat Expectations

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Adjusted diluted EPS increased 11% to $1.28 from $1.15 a year earlier.
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GAAP diluted EPS increased 38% to $1.31 from $0.95. The increase was helped by operating income expansion and lower restructuring charges compared with the prior year.

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Operating Margin Expanded

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Operating income as a percentage of revenue improved to 4.1% from 2.5% last year.
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Adjusted operating income rate also improved to 4.1%, compared with 3.8% in the prior-year period. Domestic gross margin rose slightly to 23.7%, supported by Marketplace, Best Buy Ads, and better performance from traditional services, partly offset by lower product margins.

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Guidance Was Reaffirmed

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Best Buy reiterated its full-year fiscal 2027 guidance.
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The company still expects revenue of $41.2 billion to $42.1 billion, comparable sales between down 1.0% and up 1.0%, adjusted operating income rate of 4.3% to 4.4%, and adjusted EPS of $6.30 to $6.60.

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CEO Transition Announced

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CEO Corie Barry said she will step down later this year.
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Jason Bonfig, Best Buy’s Chief Customer, Product and Fulfillment Officer, will become CEO effective November 1, 2026. Bonfig said his priorities include advancing Best Buy as a retail, media, advertising, and technology company, expanding reach, improving the customer experience, and keeping the company customer-focused.

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Shareholder Returns Continued

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Best Buy returned $202 million to shareholders through dividends in the quarter.
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The company still expects to spend about $300 million on share repurchases during fiscal 2027. Best Buy also declared a regular quarterly dividend of $0.96 per share, payable July 9, 2026, to shareholders of record as of June 18.

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Market Focus

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Investors are likely to watch whether Best Buy can sustain positive comparable sales while growing higher-margin profit streams.
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The key areas are:
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• comparable sales
• gaming demand
• computing demand
• mobile phones and services
• appliance weakness
• Best Buy Ads
• Marketplace growth
• adjusted operating margin
• CEO transition
• FY27 guidance

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The Bigger Picture

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Best Buy delivered a better-than-expected quarter.
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Comparable sales returned to growth, EPS improved, operating margin expanded, and management reaffirmed full-year guidance. The stock reaction likely reflected stronger sales trends and confidence in newer profit streams like Best Buy Ads and Marketplace.
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