01—Abstract
Summary
Summary of the 10-Q filed June 5, 2026. Cited figures are marked; the original filing is the authoritative source.
Best Buy Co., Inc. reported net earnings of $276 milliona, or $1.31 per diluted share, for the first quarter of fiscal 2027 (13 weeks ended May 2, 2026), up from $202 million, or $0.95 per diluted share, in the prior-year quarter.
Revenue rose to $8.94 billionb from $8.77 billion, and comparable sales grew 2.0%, driven by gaming, computing and mobile phones, partially offset by a decline in major appliances. Operating income increased to $370 million from $219 million, largely reflecting a reduction in restructuring charges (a $9 million benefit versus a $109 million charge a year earlier). Adjusted operating income, a non-GAAP measure, was $363 million versus $333 million, and adjusted diluted EPS was $1.28 versus $1.15.
Cash flow from operations was $375 millionc, compared with $34 million a year earlier, mainly reflecting the timing of accounts payable. Capital expenditures were $160 million and dividends paid were $202 million. No shares were repurchased in the quarter, and $3.0 billion remained available under the $5.0 billion authorization.
Cash and cash equivalents stood at $1.75 billiond, and long-term debt totaled $1.16 billion, with no borrowings under the $1.25 billion revolving credit facility. The filing notes ongoing uncertainty around tariffs following the U.S. Supreme Court ruling that IEEPA tariffs were unauthorized.
Best Buy is participating in the refund process, but it recognized no refund amounts in the quarter. The company also states that it does not expect material future restructuring charges under its current initiatives.
02—Key points
Key Highlights
- Net earnings rose to $276 million ($1.31 diluted EPS) from $202 million ($0.95) a year earlier.
- Revenue of $8.94 billion grew from $8.77 billion, with comparable sales up 2.0%.
- Domestic comparable sales rose 1.8%, led by Entertainment (38.1%, driven by gaming) and Computing and Mobile Phones (4.2%), while Appliances fell 13.6%.
- International revenue increased 7.3% to $687 million, with comparable sales up 4.7%.
- Operating income of $370 million compared with $219 million, mainly due to lower restructuring charges; adjusted operating income was $363 million versus $333 million.
- Operating cash flow was $375 million versus $34 million, and no shares were repurchased during the quarter; $3.0 billion remains under the buyback authorization.
- Tariff refunds under IEEPA are pending, and no refund amounts were recognized in the quarter.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2027, Best Buy kept $0.03.
- Revenue$9.78B100.0%
- Cost of revenue−$7.44B76.1%
- Gross profit$2.34B23.9%
- Operating costs−$1.92B19.6%
- Operating income$421.0M4.3%
- Interest, other & tax−$106.0M1.1%
- Net income$315.0M3.2%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2027filed June 5, 2026Financial Statements
Q2 FY2027 against Q2 FY2026
| Line item | Q2 FY2027Q2 FY2026 | Change |
|---|---|---|
| Revenue | $9.78B$9.44B | +3.6% |
| Cost of Revenue | $7.44B$7.24B | +2.7% |
| Gross Profit | $2.34B$2.19B | +6.6% |
| SG&A Expenses | $1.92B$1.83B | +5.1% |
| Operating Income | $421.00M$251.00M | +67.7% |
| Net Income | $315.00M$186.00M | +69.4% |
| EPS (Basic) | $1.49$0.88 | +69.3% |
| EPS (Diluted) | $1.48$0.87 | +70.1% |
| Shares Outstanding (Basic) | 211.30M211.50M | −0.1% |
| Shares Outstanding (Diluted) | 212.70M212.00M | +0.3% |
05—Questions
Frequently Asked Questions
Why did Best Buy's operating income increase so significantly this quarter?
Operating income rose to $370 million from $219 million. The filing primarily attributes the increase to lower restructuring charges: the quarter included a $9 million reduction in restructuring charges, compared with a $109 million charge in the prior-year quarter. Gross profit also rose to $2.10 billion from $2.05 billion, while SG&A was $1.74 billion versus $1.72 billion.
Is Best Buy returning cash to shareholders this quarter?
Dividends of $202 million were paid, with a regular quarterly dividend of $0.96 per share versus $0.95 a year earlier. No shares were repurchased in the quarter, compared with $100 million of repurchases in the prior-year quarter. The company has $3.0 billion remaining under its $5.0 billion share repurchase program, which has no expiration date.
What drove the change in operating cash flow?
Operating cash flow was $375 million versus $34 million. The filing attributes the increase primarily to higher cash outflows from accounts payable in the prior year, due to the timing and volume of inventory purchases and payments. Merchandise inventories rose to $5.60 billion from $5.23 billion at fiscal year-end, and accounts payable rose to $5.12 billion from $4.75 billion.
What is the status of potential tariff refunds?
Best Buy is participating in the U.S. Customs and Border Protection process for refunds of IEEPA tariffs it paid as importer of record, following a U.S. Supreme Court decision that ruled those tariffs unauthorized. The timing and amount of refunds remain subject to legal and administrative uncertainty, and no amounts were recognized in the quarter.
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