Best Buy Q1 revenue beats estimates, helped by category performance

Best Buy

28/05/2026 12:11

Overview
US electronics retailer's Q1 revenue and adjusted EPS beat analyst expectations
Comparable sales rose 2.0% yr/yr, led by gaming, computing, and mobile phones
Company reiterated FY27 adjusted EPS guidance and announced CEO transition for later this year

Outlook
Best Buy reiterates FY27 revenue guidance of $41.2 bln to $42.1 bln
Company expects FY27 adjusted diluted EPS of $6.30 to $6.60
Best Buy sees Q2 comparable sales growth of about 1.0%

Result Drivers
CATEGORY PERFORMANCE - Growth in gaming, computing, mobile phones, and services drove comparable sales gains, partially offset by a decline in appliances
NEW PROFIT STREAMS - Marketplace and Best Buy Ads contributed to higher gross profit rates, though gains were offset by lower product margin rates
INTERNATIONAL GROWTH - International revenue increased due to comparable sales growth and favorable foreign exchange rates

Company press release: ID:nBw9FzjSfa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
$8.94 bln
$8.83 bln (19 Analysts)
Q1 Adjusted EPS
Beat
$1.28
$1.23 (20 Analysts)
Q1 EPS
 
$1.31
 
Q1 Net Income
 
$276 mln
 
Q1 Gross Profit
 
$2.10 bln
 
Q1 Operating income
 
$370 mln
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 6 "strong buy" or "buy", 18 "hold" and 2 "sell" or "strong sell"
The average consensus recommendation for the computer & electronics retailers peer group is "buy."
Wall Street's median 12-month price target for Best Buy Co Inc is $70.00, about 8.5% above its May 27 closing price of $64.54
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 10 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)