Best Buy (NYSE:BBY) Posts Quarterly Earnings Results, Beats Estimates By $0.08 EPS

Best Buy (NYSE:BBY) released its quarterly earnings data on Thursday. The technology retailer reported $1.47 EPS for the quarter, beating analysts’ consensus estimates of $1.39 by $0.08, FiscalAI reports. The business had revenue of $9.78 billion during the quarter, compared to analysts’ expectations of $9.59 billion. Best Buy had a net margin of 2.73% and a return on equity of 48.70%. The firm’s quarterly revenue was up 3.6% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.28 EPS. Best Buy updated its FY 2027 guidance to 6.700-6.900 EPS.

Here are the key takeaways from Best Buy’s conference call:

• Best Buy exceeded expectations in Q2, with comparable sales up 4.1%, revenue of $9.8 billion, adjusted operating margin of 4.3%, and adjusted EPS of $1.47, up 15% year over year. The company raised its full-year outlook to comparable sales growth of 1.9%-3% and adjusted EPS of $6.70-$6.90.
• Growth was broad-based, led by computing, home theater, mobile phones, and emerging categories such as AI glasses, trading cards, and health rings, whose combined sales more than doubled. Domestic TV sales rose more than 10%, while appliance trends improved through better pricing, availability, and delivery speed.
• Higher-margin growth initiatives are gaining traction: Best Buy Ads is on track for 10% annual growth on last year’s $900 million in collections, while marketplace gross merchandise volume reached approximately $300 million in Q2 and is now expected to reach $1.3 billion for the full year. These initiatives helped drive domestic gross margin expansion.
• Best Buy is expanding its digital and customer ecosystem through the phased rollout of its Ask Blue conversational AI assistant, commerce integration with OpenAI’s ChatGPT, smaller-format stores, vendor “store-within-a-store” concepts, and updated paid memberships. Management expects paid members to grow from just over 8 million in February to approximately 9 million by year-end.
• Memory-cost inflation is pushing computing average selling prices up by mid-teens percentages, with units down by high single digits, and management expects computing growth to slow in the back half as it laps the Windows 10 support-expiration boost. International revenue also declined 4.2% year over year, while higher incentive compensation and investment spending are increasing SG&A.

Best Buy Trading Down 4.2%

Best Buy stock opened at $83.77 on Friday. The company has a market cap of $17.66 billion, a price-to-earnings ratio of 15.51, a P/E/G ratio of 2.50 and a beta of 1.29. The firm has a 50-day moving average of $83.01 and a 200-day moving average of $71.26. The company has a debt-to-equity ratio of 0.38, a current ratio of 1.12 and a quick ratio of 0.40. Best Buy has a one year low of $55.10 and a one year high of $91.26.

Best Buy Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, October 8th. Stockholders of record on Thursday, September 17th will be paid a dividend of $0.96 per share. This represents a $3.84 dividend on an annualized basis and a dividend yield of 4.6%. The ex-dividend date is Thursday, September 17th. Best Buy’s dividend payout ratio is currently 71.11%.

Insider Activity

In related news, Chairman Richard M. Schulze sold 224,705 shares of Best Buy stock in a transaction dated Friday, June 26th. The stock was sold at an average price of $78.10, for a total value of $17,549,460.50. Following the sale, the chairman owned 10,430,936 shares of the company’s stock, valued at approximately $814,656,101.60. The trade was a 2.11% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders sold a total of 500,000 shares of company stock valued at $39,065,226 over the last 90 days. 0.50% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of BBY. Palisade Asset Management LLC acquired a new position in shares of Best Buy during the 3rd quarter worth approximately $25,000. Atlas Capital Advisors Inc. acquired a new stake in shares of Best Buy in the 4th quarter valued at approximately $32,000. CYBER HORNET ETFs LLC acquired a new stake in shares of Best Buy in the 2nd quarter valued at approximately $33,000. MUFG Securities EMEA plc bought a new position in shares of Best Buy in the second quarter valued at $38,000. Finally, DV Equities LLC bought a new position in shares of Best Buy in the fourth quarter valued at $38,000. 80.96% of the stock is currently owned by institutional investors.

More Best Buy News

Here are the key news stories impacting Best Buy this week:

• Positive Sentiment: Best Buy reported adjusted earnings of $1.47 per share and revenue of $9.78 billion, exceeding analyst expectations of $1.39 and $9.59 billion, respectively. Revenue increased 3.6% year over year, while comparable sales rose 4.1%, supported by stronger computing demand. Best Buy Reports Second Quarter Results
• Positive Sentiment: Management raised fiscal 2027 guidance, now forecasting adjusted EPS of $6.70-$6.90, up from $6.30-$6.60, and revenue of $42.3-$42.8 billion, above the $42.1 billion consensus estimate. Best Buy raises annual sales forecast on steady electronics demand
• Positive Sentiment: Growth initiatives include expanded digital and omnichannel sales, smaller-format stores and the rollout of the “Ask Blue” conversational AI assistant. Demand for computing products, AI glasses and collectibles also contributed to the upbeat outlook. Best Buy Expands Omnichannel Footprint With OpenAI Integration and Smaller-Format Stores
• Neutral Sentiment: Best Buy declared a quarterly dividend of $0.96 per share, payable October 8 to shareholders of record September 17. The annualized payout is approximately $3.84 per share, implying a yield near 4.6% at the referenced share price.
• Negative Sentiment: The stock fell even after the earnings beat and guidance increase, suggesting the results may have been largely anticipated. Investors may also remain concerned about subdued consumer spending, thin net margins and whether computing-led growth can persist.

Wall Street Analyst Weigh In

A number of research analysts have issued reports on BBY shares. Barclays reissued a “buy” rating and issued a $85.00 target price on shares of Best Buy in a research note on Friday. JPMorgan Chase & Co. lifted their price objective on Best Buy from $76.00 to $84.00 and gave the company a “neutral” rating in a report on Friday, May 29th. KeyCorp reiterated a “sector weight” rating on shares of Best Buy in a research report on Monday, June 22nd. Wall Street Zen cut Best Buy from a “buy” rating to a “hold” rating in a research note on Monday, July 20th. Finally, Daiwa Securities Group raised their price objective on shares of Best Buy from $68.00 to $77.00 and gave the stock a “neutral” rating in a report on Tuesday, June 2nd. Seven research analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, Best Buy presently has an average rating of “Hold” and a consensus target price of $83.75.

About Best Buy

Best Buy Co, Inc is a leading North American consumer electronics retailer that sells a broad range of products including computers, mobile phones, televisions and home theater systems, major appliances, smart-home devices, gaming hardware and software, wearables and related accessories. The company operates through a mix of large-format stores, smaller specialty locations and an e-commerce platform, offering national and private-brand merchandise from major consumer-technology manufacturers as well as third-party sellers.

Beyond product retailing, Best Buy provides a suite of services aimed at installation, repair and ongoing technical support.