01—Abstract
Summary
Summary of the 10-K filed March 18, 2026. Cited figures are marked; the original filing is the authoritative source.
Best Buy Co., Inc. reported fiscal 2026 (ended January 31, 2026) revenue of $41.69 billiona, up from $41.53 billion in fiscal 2025, with comparable sales growing 0.5%.
Operating income rose to $1.39 billionb from $1.26 billion, and diluted EPS increased to $5.04 from $4.28. The increase was driven primarily by lower goodwill and intangible asset impairments ($171 million in fiscal 2026 versus $475 million in fiscal 2025), partially offset by higher restructuring charges of $190 million. Net earnings were $1.07 billion.
Adjusted diluted EPS, a non-GAAP measure, was $6.43c versus $6.37 in the prior year. Domestic segment revenue was $38.28 billion, with comparable sales up 0.4%, led by computing and mobile phones (up 5.7%), partially offset by declines in appliances and consumer electronics. International segment revenue was $3.41 billion, with comparable sales up 2.3%.
The impairments related to Best Buy Health, which recorded a $118 milliond goodwill impairment in the third quarter, reflecting lower revenue and margin projections amid pressures in the Medicaid and Medicare Advantage markets. Management also exited a component of that business. Cash flow from operations was $1.96 billion, down from $2.10 billion, mainly because of accounts payable outflows.
Capital expenditures were $704 million, and the company repurchased 4.0 million shares for $273 million, with $3.01 billion remaining under its authorization. The quarterly dividend was raised 1% to $0.96 per share. The filing also highlights the February 20, 2026 U.S. Supreme Court ruling that IEEPA tariffs were unauthorized.
The ruling did not address refunds, and the outcome of refund proceedings remains uncertain. The company ended the year with 1,068 stores, down from 1,117, and held $1.74 billion in cash against $1.18 billion in long-term debt, including current portion.
02—Key points
Key Highlights
- Revenue rose to $41.69 billion from $41.53 billion, with comparable sales up 0.5%, returning to growth.
- Operating income increased to $1.39 billion from $1.26 billion, and operating margin rose to 3.3% from 3.0%, mainly due to lower goodwill and intangible impairments.
- Diluted EPS was $5.04 versus $4.28; non-GAAP adjusted diluted EPS was $6.43 versus $6.37.
- Best Buy Health recorded $171 million in goodwill and intangible impairments, including $118 million of goodwill, and the company exited a component of that business.
- Restructuring charges of $190 million related to a labor and store optimization initiative and the Best Buy Health optimization.
- Operating cash flow fell to $1.96 billion from $2.10 billion, driven by accounts payable outflows; $273 million was spent on share repurchases and $801 million on dividends.
- After the U.S. Supreme Court ruled IEEPA tariffs unauthorized on February 20, 2026, refund outcomes remain uncertain; the store count fell to 1,068 from 1,117.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2026, Best Buy kept $0.03.
- Revenue$41.69B100.0%
- Cost of revenue−$32.32B77.5%
- Gross profit$9.37B22.5%
- Operating costs−$7.98B19.2%
- Operating income$1.39B3.3%
- Interest, other & tax−$320.0M0.8%
- Net income$1.07B2.6%
Where FY2026 revenue went
$41.69B- Cost of revenue: $32.32B, 78% of revenue
- SG&A: $7.62B, 18% of revenue
- Net income: $1.07B, 2.6% of revenue
- Other operating costs: $361.0M, 0.9% of revenue
- Interest, other & tax: $320.0M, 0.8% of revenue
Kept 2.6% as net incomeNet income $1.07B · 2.6%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2026filed March 18, 2026Financial Statements
FY2026 against FY2025
| Line item | FY2026FY2025 | Change |
|---|---|---|
| Revenue | $41.69B$41.53B | +0.4% |
| Cost of Revenue | $32.32B$32.14B | +0.5% |
| Gross Profit | $9.37B$9.38B | −0.1% |
| SG&A Expenses | $7.62B$7.65B | −0.4% |
| Operating Income | $1.39B$1.26B | +10.1% |
| Interest Expense | $47.00M$51.00M | −7.8% |
| Net Income | $1.07B$927.00M | +15.3% |
| EPS (Basic) | $5.06$4.31 | +17.4% |
| EPS (Diluted) | $5.04$4.28 | +17.8% |
| Shares Outstanding (Basic) | 211.00M215.20M | −2.0% |
| Shares Outstanding (Diluted) | 212.10M216.60M | −2.1% |
05—Questions
Frequently Asked Questions
Why did reported operating income improve despite flat revenue?
Operating income rose to $1.39 billion from $1.26 billion mainly because goodwill and intangible asset impairments fell to $171 million from $475 million. This was partly offset by restructuring charges that increased to $190 million from a $3 million benefit in the prior year.
What drove the Best Buy Health impairments?
A change in Best Buy Health's customer base in the third quarter of fiscal 2026 led to an impairment review of all its assets. The impairments reflect downward revisions to revenue growth and margin rates, in part due to pressures in the Medicaid and Medicare Advantage markets.
How did the segments perform?
Domestic revenue was $38.28 billion, up slightly, with comparable sales up 0.4%, driven by computing and mobile phones. International revenue rose 3.7% to $3.41 billion, with comparable sales up 2.3%.
What is the status of the tariff refund issue?
The U.S. Supreme Court ruled on February 20, 2026 that IEEPA tariffs were unauthorized, but the ruling did not address refunds. The timing, process, and ultimate recoverability of any refunds remain uncertain, according to the filing.
How is the company returning capital to shareholders?
In fiscal 2026 Best Buy repurchased 4.0 million shares for $273 million and paid $801 million in dividends. The Board raised the quarterly dividend 1% to $0.96 per share, and $3.01 billion remained under the $5.0 billion repurchase authorization at year end.
06—Continue