Best Buy (NYSE:BBY) Posts Quarterly Earnings Results

Best Buy (NYSE:BBY) posted its earnings results on Thursday. The technology retailer reported $1.47 EPS for the quarter, beating the consensus estimate of $1.39 by $0.08, FiscalAI reports. The firm had revenue of $9.78 billion for the quarter, compared to analysts’ expectations of $9.59 billion. Best Buy had a return on equity of 48.14% and a net margin of 3.01%.The firm’s revenue was up 3.6% compared to the same quarter last year. During the same period last year, the firm 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 Stock Down 1.5%

BBY stock opened at $82.34 on Friday. The firm has a market cap of $17.35 billion, a PE ratio of 13.70, a PEG ratio of 2.36 and a beta of 1.29. Best Buy has a 1 year low of $55.10 and a 1 year high of $91.26. The company has a fifty day simple moving average of $83.16 and a 200 day simple moving average of $71.34. The company has a current ratio of 1.12, a quick ratio of 0.40 and a debt-to-equity ratio of 0.36.

Best Buy Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, October 8th. Stockholders of record on Thursday, September 17th will be issued a dividend of $0.96 per share. The ex-dividend date is Thursday, September 17th. This represents a $3.84 dividend on an annualized basis and a dividend yield of 4.7%. Best Buy’s dividend payout ratio (DPR) is currently 71.11%.

Key Stories Impacting Best Buy

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

• Positive Sentiment: Quarterly results exceeded expectations. Best Buy reported Q2 FY27 revenue of $9.78 billion, up 3.6% year over year and above the $9.59 billion consensus estimate. Adjusted earnings of $1.47 per share also topped the $1.39 consensus, while comparable sales rose 4.1%. Best Buy Reports Second Quarter Results
• Positive Sentiment: Best Buy raised its full-year outlook. The company now expects adjusted fiscal 2027 earnings of $6.70 to $6.90 per share, up from $6.30 to $6.60 previously, and revenue of $42.3 billion to $42.8 billion. The improved forecast reflects strength in computing and steady demand for technology upgrades and replacements. Best Buy raises annual sales forecast on steady electronics demand
• Positive Sentiment: Analyst sentiment improved. Guggenheim and DA Davidson each raised their BBY price target from $90 to $95 and assigned a “buy” rating, implying roughly 15% upside from the referenced price.
• Positive Sentiment: Shareholder returns remain attractive. Best Buy declared a quarterly dividend of $0.96 per share, equivalent to an annualized yield of approximately 4.7% at the referenced price.
• Neutral Sentiment: Growth initiatives could support the longer-term retail recovery. Best Buy is expanding its omnichannel strategy, including the Ask Blue conversational AI assistant and smaller-format stores, while digital-led sales growth was highlighted during the earnings call. Best Buy Expands Omnichannel Footprint With OpenAI Integration and Smaller-Format Stores
• Negative Sentiment: The negative market reaction likely reflects high expectations and lingering risks. Although results beat estimates, the outlook increase was relatively modest versus consensus, international revenue declined, and investors remain cautious about discretionary spending. Analysts are also described as conflicted on BBY, suggesting uncertainty about how durable the recovery will be. Analysts Conflicted on These Consumer Cyclical Names

Analyst Ratings Changes

Several brokerages have recently commented on BBY. Loop Capital downgraded Best Buy from a “buy” rating to a “hold” rating and set a $82.00 target price for the company. in a report on Monday, July 13th. Jefferies Financial Group lowered shares of Best Buy from a “buy” rating to a “hold” rating and reduced their price objective for the company from $89.00 to $85.00 in a research note on Wednesday, August 5th. Telsey Advisory Group lifted their target price on shares of Best Buy from $90.00 to $95.00 and gave the stock an “outperform” rating in a research report on Tuesday, August 4th. Wells Fargo & Company boosted their price target on shares of Best Buy from $65.00 to $85.00 and gave the company an “equal weight” rating in a report on Tuesday, August 11th. Finally, Bank of America initiated coverage on shares of Best Buy in a research report on Monday, August 3rd. They issued an “underperform” rating and a $80.00 price target for the company. Seven analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, the company has an average rating of “Hold” and an average price target of $85.40.

Insider Buying and Selling

In other Best Buy news, Chairman Richard M. Schulze sold 224,705 shares of the stock in a transaction on Friday, June 26th. The shares were sold at an average price of $78.10, for a total transaction of $17,549,460.50. Following the transaction, the chairman directly owned 10,430,936 shares of the company’s stock, valued at $814,656,101.60. This represents a 2.11% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Insiders have sold 500,000 shares of company stock worth $39,065,226 over the last 90 days. Corporate insiders own 0.50% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the stock. Palisade Asset Management LLC bought a new stake in Best Buy during the third quarter worth approximately $25,000. Atlas Capital Advisors Inc. bought a new position in shares of Best Buy in the fourth quarter valued at approximately $32,000. CYBER HORNET ETFs LLC acquired a new stake in shares of Best Buy in the second quarter worth $33,000. MUFG Securities EMEA plc acquired a new stake in shares of Best Buy in the second quarter worth $38,000. Finally, DV Equities LLC bought a new stake in shares of Best Buy during the 4th quarter worth $38,000. Institutional investors and hedge funds own 80.96% of the company’s stock.

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.