Electronics retailer Best Buy beats Q2 revenue estimates on computing, home theater demand, raises FY27 outlook

Best Buy

27/08/2026 12:11

Overview
US electronics retailer's Q2 revenue rose 4% yr/yr, beating analyst expectations
Adjusted EPS for Q2 increased 15% and beat analyst expectations
Company raised FY27 guidance for comparable sales and adjusted EPS

Outlook
Best Buy raises FY27 revenue guidance to $42.3 bln-$42.8 bln from $41.2 bln-$42.1 bln
Company lifts FY27 comparable sales growth outlook to 1.9%-3.0% from (1.0%)-1.0%
Best Buy expects Q3 FY27 comparable sales growth of 1.0%-3.0%

Result Drivers
CATEGORY GROWTH - Co said Q2 comparable sales growth was driven by computing, home theater and emerging categories including AI glasses and trading cards
MARKETPLACE AND ADS - Higher domestic gross profit rate was mainly due to growth in Marketplace and Best Buy Ads, and tariff refunds
INCREASED EXPENSES - Domestic adjusted SG&A rose due to higher compensation, Marketplace and Ads expenses, and advertising

Company press release: ID:nBwc22P7ja

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$9.78 bln
$9.59 bln (19 Analysts)
Q2 Adjusted EPS
Beat
$1.47
$1.38 (20 Analysts)
Q2 EPS
 
$1.48
 
Q2 Net Income
 
$315 mln
 
Q2 Comparable Sales Growth
 
4.10%
 
Q2 Gross Profit
 
$2.34 bln
 
Q2 Operating income
 
$421 mln
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 20 "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 $85.00, about 2.8% below its August 26 closing price of $87.44
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 9 three months ago

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(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.)