Revenue came in at $13.8 billion, down about 1% year-over-year, driven by a 0.8% decline in comparable sales, with weakness primarily in home theater and appliances partially offset by strength in computing and mobile categories. Profitability was the key positive. Adjusted operating margin came in at 5.0%, up 10 bps YoY, supported by stable gross margins (20.9%) and lower SG&A as a percentage of sales, aided by cost controls and efficiencies. Adjusted operating income grew modestly (+0.7% YoY), and adjusted EPS of $2.61 was slightly higher year-over-year and ahead of expectations. Strategically, management highlighted new profit streams (Ads and Marketplace) as incremental margin drivers, which helped offset pressure from product margins.
Note: Best Buy's FY'26 ended on January 31, 2026.
The company guided revenue to $41.2 billion–$42.1 billion, implying broadly flat growth, with comparable sales expected in the range of -1% to +1%, signaling limited near-term recovery in core consumer electronics demand. On profitability, management expects adjusted operating margins of 4.3%–4.4%, down from Q4 levels, as FY2027 is positioned as an “investment year” with higher spending on ads, marketplace, technology, and labor to build longer-term earnings drivers. Adjusted EPS is guided to $6.30–$6.60, broadly in line with or slightly below consensus, reinforcing a conservative stance.
Below are key drivers of Best Buy's value that present opportunities for upside or downside to the current Trefis price estimate for Best Buy.
For additional details, select a driver above or select a division from the interactive Trefis split for Best Buy at the top of the page.
Best Buy is the largest specialty retailer of consumer electronics in the U.S., selling a variety of brands of electronic devices such as TVs, home theater systems, cameras, appliances, computers, mobile phones, video games, software, and repair & installation services to consumers across the country under different store brands. It operates a click-and-mortar strategy, wherein it uses online channels as an effective way to boost store sales and allocates any sales made online, to its stores. Best Buy competes primarily with retailers such as Walmart, Amazon, Target, and Costco.
The Domestic segment remains the largest contributor to Best Buy's overall valuation due to its scale and profitability.
Best Buy benefits from strong brand recognition and a nationwide store footprint, allowing it to capture significant share in categories such as TVs, appliances, and computing devices.
The company's Geek Squad and membership offerings create a differentiated value proposition, driving recurring revenue and higher customer lifetime value.
Following pandemic-driven demand spikes, the consumer electronics market is undergoing normalization. Replacement cycles are lengthening, impacting near term sales, though long term demand remains intact.
Best Buy is actively pivoting toward services and memberships to offset cyclicality in product sales, aiming to build a more resilient and predictable revenue model.
