Executive Summary
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.
Key Performance Indicators
QoQ: 14.61% | YoY:-34.46%
QoQ: -7.92% | YoY:-36.08%
QoQ: -7.37% | YoY:-34.81%
Key Insights
Revenue: 9,438,000,000 USD; YoY growth: 1.61%; QoQ growth: 7.65%
Gross Profit: 2,194,000,000 USD; Gross Margin: 23.25%; YoY gross profit change: 0.37%; QoQ gross profit change: 7.08%
Operating Income: 251,000,000 USD; Operating Margin: 2.66%; YoY operating income change: -34.46%; QoQ change: 14.61%
Net Income: 186,000,000 USD; Net Margin: 1.97%; YoY net income change: -36.08%; QoQ change: -7.92%
EPS: 0.88 USD; Diluted EPS: 0.87 USD; YoY EPS change: -34.81%; QoQ EPS change: -7.37%
Notes on data q...
Financial Highlights
Revenue: 9,438,000,000 USD; YoY growth: 1.61%; QoQ growth: 7.65%
Gross Profit: 2,194,000,000 USD; Gross Margin: 23.25%; YoY gross profit change: 0.37%; QoQ gross profit change: 7.08%
Operating Income: 251,000,000 USD; Operating Margin: 2.66%; YoY operating income change: -34.46%; QoQ change: 14.61%
Net Income: 186,000,000 USD; Net Margin: 1.97%; YoY net income change: -36.08%; QoQ change: -7.92%
EPS: 0.88 USD; Diluted EPS: 0.87 USD; YoY EPS change: -34.81%; QoQ EPS change: -7.37%
Notes on data quality: EBITDA reported as 7,000,000 USD while Depreciation & Amortization is shown as -211,000,000 USD, which would imply a substantially different EBITDA figure when reconciled. The inconsistency suggests potential extraction or classification issues in the provided data; the reconciliation should be verified against the official 10-Q for FY26 Q2.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
9.44B |
1.61% |
7.65% |
| Gross Profit |
2.19B |
0.37% |
7.08% |
| Operating Income |
251.00M |
-34.46% |
14.61% |
| Net Income |
186.00M |
-36.08% |
-7.92% |
| EPS |
0.88 |
-34.81% |
-7.37% |
Management Commentary
Transcript data not provided in the input. As a result, no direct management quotes or thematic quotes can be included. When transcript excerpts are supplied, we will add them grouped by themes (strategy, operations, market conditions) with context and significance. Note: Once the call is available, we will incorporate management commentary on cost controls, mix shift toward services, and any outlook provided for the back-half of FY26.
Forward Guidance
No explicit forward guidance was included in the provided material. What can be inferred from the results is a focus on margin discipline and service-led revenue growth to offset volatility in hardware categories. Management commentary (if available) typically addresses: (i) progress on cost optimization and SG&A containment, (ii) initiatives to grow higher-margin services (e.g., installation, tech support, and memberships), and (iii) sensitivity to consumer demand and macro trends affecting discretionary retail. Investors should monitor updates on provided FY26/FY27 outlook, anticipated comp store sales trends, online penetration, and any restructuring or efficiency programs. In the absence of explicit guidance, the achievability of a stabilized or modestly improving margin profile will hinge on cost controls, mix improvement, and online growth traction.