Best Buy reports financial results for the second quarter of fiscal year 2026.

Best Buy recently released its financial results for the second quarter of fiscal year 2026, which ended on August 2, 2025. The report highlighted a 1.6% increase in comparable sales, with diluted earnings per share (EPS) reaching $0.87. Adjusted diluted EPS stood at $1.28, and the company reiterated its guidance for full-year adjusted diluted EPS in the range of $6.15 to $6.30.

Corie Barry, CEO of Best Buy, expressed satisfaction with the 1.6% growth in comparable sales achieved during the second quarter, marking the highest growth rate in three years. Barry attributed this growth to a combination of new technological advancements, a focus on providing a seamless omni-channel customer experience, and strong partnerships with vendors.

Looking ahead, Barry mentioned the company’s plans for the second half of the year, which include the introduction of more technological innovations, new store experiences, and the launch of the Best Buy Marketplace. She emphasized that sales momentum has continued into August, driven by the favorable response to back-to-school sales events. Barry commended the teams at Best Buy for their dedication to technology, passion for customer service, and effective execution.

Matt Bilunas, Chief Financial Officer of Best Buy, noted that the higher-than-expected sales growth contributed to a better Q2 adjusted operating income rate. Despite anticipated SG&A expenses, some gross profit rate pressure was experienced due to significant growth in gaming and computing.

Looking forward to the third quarter, Bilunas expects comparable sales growth to be similar to that of the second quarter, with an adjusted operating income rate comparable to last year’s 3.7%. While uncertainty remains regarding potential tariff impacts in the latter part of the year, the company decided to maintain its annual guidance provided in the previous quarter.

The reiteration of financial guidance for fiscal year 2026 includes revenue estimates ranging from $41.1 billion to $41.9 billion, comparable sales projected between -1.0% and 1.0%, adjusted operating income rate at approximately 4.2%, adjusted effective income tax rate around 25.0%, and adjusted diluted EPS between $6.15 and $6.30.

In the domestic segment, Best Buy reported a 0.9% increase in revenue to $8.70 billion, driven primarily by a 1.1% growth in comparable sales. Gaming, computing, and mobile phones were the main contributors to this growth, partially offset by declines in home theater, appliances, tablets, and drones. Online revenue in the domestic market saw a 5.1% increase, accounting for 32.8% of total revenue.

Internationally, revenue increased by 11.3% to $740 million, mainly due to a 7.6% growth in comparable sales and revenue from new Best Buy Express locations in Canada. However, the international gross profit rate decreased to 21.8% due to lower product margin rates.

Lastly, the company reported incurring $114 million in restructuring charges in the second quarter of fiscal year 2026. These charges were associated with an enterprise-wide restructuring initiative aimed at realigning resources to better meet evolving customer needs and strategic goals.