Best Buy announces fourth quarter fiscal year 2026 financial results

Best Buy has released its fourth-quarter financial results for fiscal year 2026. The company reported a decrease in comparable sales of 0.8%, with diluted earnings per share (EPS) of $2.56 and adjusted diluted EPS of $2.61. Best Buy also announced an increase in its quarterly dividend by 1% to $0.96 per share. The company expects adjusted diluted EPS for fiscal year 2027 to be between $6.30 and $6.60.

In terms of revenue, the enterprise revenue for Best Buy was $13.814 billion in Q4 FY26, slightly lower than the $13.948 billion in Q4 FY25. Domestic revenue was $12.575 billion, a decrease from $12.715 billion in the previous fiscal year, while international revenue was $1.239 billion compared to $1.233 billion. Comparable sales for the enterprise decreased by 0.8%, with domestic comparable sales down by the same percentage. Domestic online sales also experienced a decline of 2.3%.

Operating income as a percentage of revenue improved to 5.2% from 1.6% in the previous year, with adjusted operating income standing at 5.0%. Diluted EPS for the quarter was $2.56, up significantly from the previous year’s $0.54. Adjusted diluted EPS for the quarter was $2.61, compared to $2.58 in Q4 FY25.

Best Buy CEO Corie Barry expressed satisfaction with the company’s profitability for the fourth quarter, despite a slight decline in comparable sales. The company’s market share remained steady, indicating a softer demand in the industry during the holiday season. Barry acknowledged the hard work and dedication of over 80,000 employees in achieving these results.

Looking ahead to fiscal year 2027, Best Buy CFO Matt Bilunas is optimistic about the company’s momentum. The company’s financial guidance for FY27 includes revenue of $41.2 billion to $42.1 billion, comparable sales change of (1.0%) to 1.0%, adjusted operating income rate of 4.3% to 4.4%, and adjusted diluted EPS of $6.30 to $6.60.

In the fourth quarter of FY26, Best Buy’s domestic revenue decreased by 1.1%, primarily due to a comparable sales decline of 0.8%. The decline was driven by decreases in home theater and appliances sales, partially offset by growth in computing and mobile phones. Domestic online revenue decreased by 2.3% to $4.91 billion.

Operating income remained consistent at 20.9%, with gross profit rate supported by growth in Best Buy Ads and Marketplace. Adjusted selling, general, and administrative expenses decreased, driven by lower compensation expenses and increased Marketplace and Best Buy Ads initiatives.

International revenue increased slightly by 0.5% in Q4 FY26, while international gross profit rate decreased to 20.5%. International adjusted SG&A expenses decreased due to lower compensation expenses, offset by exchange rate impacts.

Best Buy reported an effective tax rate of 25.6% in Q4 FY26 and announced the return of $272 million to shareholders through dividends and share repurchases. The company also approved a 1% increase in the regular quarterly cash dividend to $0.96 per common share.