Comparable sales driver mix
Comparable sales rose 4.1% in the second quarter of fiscal 2027, primarily driven by computing, home theater, AI glasses and trading cards, partially offset by a decline in traditional gaming.
Source: 10-Q Item 2 MD&A
Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Best Buy's second quarter of fiscal 2027 was defined by broad comparable sales momentum, with management pointing to computing, home theater, AI glasses and trading cards as the main growth engines. Comparable sales rose 4.1%, while traditional gaming remained the notable soft spot. The quarter also benefited from $34 million in IEEPA tariff refunds and a higher gross profit rate, though SG&A continued to climb on employee compensation and marketplace investments. Operating income and diluted earnings per share increased sharply, but the results lean on continued strength in new growth categories and the monetization of Best Buy Marketplace and Ads.
Cost of Revenue
$7.44B
+2.72% YoY
EPS (Diluted)
$1.48
+70.11% YoY
Operating Income
$421M
+67.73% YoY
Source: SEC XBRL
Best Buy (BBY) reported Q2 FY2027 revenue of $7.44B, up 2.7% year over year. BBY's fiscal Q2 FY2027 corresponds to calendar Q3 2026.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Sep 2026This filing | 1.47 | 1.39 | Beat +5.5% |
| Jun 2026 | 1.28 | 1.24 | Beat +3.3% |
| Mar 2026 | 2.61 | 2.49 | Beat +4.8% |
| Dec 2025 | 1.40 | 1.32 | Beat +6.0% |
Adjusted (non-GAAP) EPS of $1.47 versus the $1.39 analyst consensus — a +5.5% beat for Sep 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $1.48.
6 product lines · 2 regions · SEC XBRL
Product and service lines total $9.78B, which is the $9.78B of consolidated revenue on the income statement.
Revenue across regions totals $9.78B, which is the $9.78B of consolidated revenue on the income statement.
Compiled by AI from 10-Q Item 2 of this filing
Comparable sales rose 4.1% in the second quarter of fiscal 2027, primarily driven by computing, home theater, AI glasses and trading cards, partially offset by a decline in traditional gaming.
Source: 10-Q Item 2 MD&A
The company recorded $34 million in IEEPA tariff refunds as a reduction to cost of sales in the quarter, with an additional $41 million refunded in early September 2026 to be recorded in Q3 FY2027.
Source: 10-Q Item 2 MD&A
Domestic segment gross profit rate increased due to growth in Best Buy Marketplace and Best Buy Ads and the $34 million tariff refund, partially offset by lower product margin rates.
Source: 10-Q Item 2 MD&A
International comparable sales declined 1.8% in the quarter, driven by weakness in gaming and unfavorable foreign exchange, though gross profit rate improved on better product margins.
Source: 10-Q Item 2 MD&A
Cash provided by operating activities rose to $1.296 billion in the first six months, driven by the timing and volume of inventory purchases and income tax payments.
Source: 10-Q Item 2 MD&A
Compiled by AI from this SEC filing · 1 high, 4 medium, 0 low
Computing and Mobile Phones accounted for 45.6% of revenue and grew 6.1%, while Entertainment fell 8.2% and Appliances fell 1.2%. A slowdown in the computing upgrade cycle could materially pressure overall revenue.
Source: 10-Q Segment Data (XBRL)
Entertainment revenue declined 8.2% year over year, driven by weakness in traditional gaming, which management identified as the primary offset to growth in other categories. Sustained gaming weakness could weigh on comparable sales.
Source: 10-Q Segment Data (XBRL)
SG&A expense increased 5.1% to $1.923 billion, reflecting higher employee compensation, incentive compensation, marketplace and advertising spending. If revenue growth slows, these rising costs could compress operating margins.
Source: 10-Q Income Statement (XBRL)
International revenue declined 4.2% and comparable sales fell 1.8% in the quarter, with adjusted operating income rate declining on lower sales leverage. Persistent weakness in Canada could reduce consolidated profitability.
Source: 10-Q Segment Data (XBRL)
Current ratio was 1.12, and current liabilities grew 4.5% to $8.936 billion. The company relies on operating cash flow to fund operations, dividends and buybacks; a cash flow shortfall could pressure liquidity.
Source: 10-Q Balance Sheet (XBRL)
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Cost of Revenue $B | 7.44 $B | 7.24 $B | +2.72% |
Gross Profit $B | 2.34 $B | 2.19 $B | +6.56% |
Operating Income $M | 421.00 $M | 251.00 $M | +67.73% |
Net Income $M | 315.00 $M | 186.00 $M | +69.35% |
EPS (Basic) $ | 1.49 $ | 0.88 $ | +69.32% |
EPS (Diluted) $ | 1.48 $ | 0.87 $ | +70.11% |
SG&A Expense $B | 1.92 $B | 1.83 $B | +5.14% |
Answers draw on this SEC filing and the data on this page
Best Buy delivered Q1 FY2027 revenue growth of 1.9% to $8.936B and net-income growth of 36.6% to $276M, with operating-margin expansion largely reflecting a $9M restructuring benefit versus $109M of prior-year charges. Source: 10-Q Item 2 MD&A, p.17; 10-Q Income Statement (XBRL).
Best Buy delivered a solid FY2026 with revenue up 0.4% to $41.7B, net income surging 15.3% to $1.07B, and EPS growing 17.4% to $5.06, driven by disciplined cost management and SG&A reduction despite a slight gross margin compression.