Best Buy Co Inc (0R18.L) Q2 2026 Earnings Report

Best Buy reported Q2 FY26 results with revenue of $9.438 billion, marking a modest year-over-year expansion of 1.6% and a sequential improvement of 7.6% versus the prior quarter. Gross profit was $2.194 billion, yielding a gross margin of approximately 23.25%. Operating income stood at $251 million, delivering an operating margin of about 2.66%, while net income reached $186 million, corresponding to a net margin near 1.97% and an earnings per share (EPS) of $0.88 (diluted $0.87). The quarter showed a positive QoQ operating momentum, yet the year-ago period remains more robust on a profitability basis as net income and EPS declined roughly 36% and 34.8% respectively. The data also presents an apparent discrepancy between EBITDA and the depreciation/interest framework, signaling potential data quality issues in the provided extract that should be reconciled against the company’s 10-Q filings for a clean view of cash flow and non-cash charges.

Key drivers moving forward include continued emphasis on services and installment/installation offerings to bolster higher-margin revenue, ongoing cost discipline, and an online/multi-channel mix that can help support profitable growth amid a competitive landscape. Investors should monitor: (i) the sustainability of gross margin around the mid-20s, (ii) the trajectory of operating leverage as SG&A expenses adapt to volume and mix, (iii) the balance between product sales and services (e.g., Geek Squad, Total Tech Support), and (iv) cash flow quality and capital allocation in the context of a capital-intensive retail model.