Best Buy reported QQ1 2026 revenue of $8.767 billion, with gross profit of $2.049 billion and a gross margin of 23.37%. Operating income registered $219 million and net income was $202 million, corresponding to an EPS of $0.95. Year-over-year, top-line declined 0.9% while gross profit fell 0.4%, but the company delivered a meaningful QoQ improvement in net income and EPS (+72.6% and +72.7%, respectively) after a seasonally weak prior quarter. The quarterly operating margin stood at roughly 2.50%, reflecting ongoing cost pressures and mix effects in a promotional environment. Free cash flow remained negative at approximately $(132) million, driven by working capital movements and ongoing capital expenditure, while cash from operations was modest at $34 million and capex totaled $166 million. The balance sheet shows a liquid position complemented by a debt burden, with total debt of $4.051 billion and net debt of $2.904 billion, against cash and cash equivalents of $1.147 billion and total assets of $14.128 billion. Management underscored a continued focus on cost discipline, margin management, and growth in services and online channels, though formal full-year revenue guidance was not highlighted in the disclosed materials. This report synthesizes the QQ1 2026 results, management commentary themes, competitive context, and an investment thesis grounded in quantitative and qualitative factors.