Best Buy (BBY) Q2 2027 earnings summary

Executive summary

• Q2 FY27 revenue was $9.8 billion, up 3.6% year-over-year, with 4.1% comparable sales growth and broad-based category gains, especially in computing, home theater, and emerging categories like AI glasses and trading cards.

• Diluted EPS rose 70% to $1.48, and adjusted diluted EPS increased 15% to $1.47 year-over-year.

• Operating income increased to $421 million (4.3% of revenue), reflecting improved gross profit rates and lower restructuring charges.

• Leadership transition underway, with Jason Bonfig as new CEO and Anne Bramman as CFO.

• Continued focus on omni-channel retail, innovation, and scaling new profit streams like Marketplace and Best Buy Ads.

Financial highlights

• Gross profit margin improved to 23.9% from 23.2% year-over-year, aided by Marketplace, ads, and $34 million in tariff refunds.

• Domestic revenue grew 4.3% to $9.07 billion; international revenue declined 4.2% to $709 million.

• Online revenue rose 5.1% to $3 billion, representing 33.1% of domestic revenue.

• Adjusted operating income was $417 million (4.3% of revenue), up from $369 million (3.9%).

• Cash and cash equivalents rose to $2.26 billion as of August 1, 2026.

Outlook and guidance

• FY27 guidance raised: revenue $42.3–$42.8 billion, comparable sales growth 1.9–3.0%, adjusted OI rate 4.4–4.5%, and adjusted EPS $6.70–$6.90.

• Q3 FY27 guidance: comparable sales growth 1–3%, adjusted operating income rate 4.1–4.2%.

• Gross profit rate for the year to improve by 30–40 bps, driven by ads and marketplace.

• Management expects continued growth in key categories and ongoing benefits from Marketplace and Ads.

• Ongoing macroeconomic and geopolitical risks, as well as evolving trade and tariff policies, may impact future results.