Best Buy reported solid QQ2 FY26 results with revenue of $9.438 billion and an adjusted operating income rate of 3.9%, beating expectations on the top line and delivering the highest quarterly comparable sales growth (1.6%) in three years. The quarter was driven by strength in gaming (notably Switch 2), computing, and mobile phones, alongside continued omnichannel execution (33% online share, 45% of online orders picked up in-store). Management reaffirmed full-year guidance and signaled that the mix-shift toward higher-value services and marketplace earnings will gradually offset near-term gross-margin pressure from a higher mix of lower-margin products.
Management framed QQ2 as another step in a multi-year transformation toward incremental profitability streams (Marketplace, Best Buy Ads) while modernizing the supply chain to drive efficiency and service levels. The company outlined a clear plan to scale marketplace capacity, expand ad-driven monetization, and leverage a data-driven sourcing model (targeting at least 70% of all orders through the new model pre-holiday and 100% by early 2026). While the tariff environment remains a risk, BBY reiterated that mitigation strategies (manufacturing flexibility, promotions, country diversification, and selective price actions) are contributing to cost discipline.
Looking ahead, BBY maintains guidance for FY26 with revenue of $41.1–$41.9 billion, comparable sales down 1% to up 1%, and an adjusted operating income rate near 4.2%. The company also provided an EPS target of $6.15–$6.30 and capex of roughly $700 million. The trajectory hinges on continued gaming and computing momentum, the ramp of the marketplace and ads engines, and the ability to manage promotional intensity and tariff headwinds, particularly into the back half of the year.