Best Buy Co. Inc. (BBY) reported adjusted Q2 earnings per share of $1.47, a 15 percent year-over-year increase, crushing analyst expectations of $1.34 to $1.35. Revenue hit $9.78 billion, up 3.6 percent and well above the 1 to 1.5 percent consensus growth forecast.
Comparable sales grew 4.1 percent—a decisive beat. Adjusted operating margin expanded to 4.3 percent versus the company's prior 3.9 percent forecast for the quarter.
On the strength of Q2, Best Buy raised full-year FY27 adjusted EPS guidance to $6.70–$6.90 from $6.30–$6.60. The company also lifted full-year revenue guidance to $42.3 billion–$42.8 billion and now expects comparable sales growth of 1.9 to 3.0 percent for the year. For Q3, the company projects comparable sales to increase 1 to 3 percent.
The company declared a $0.96 per share dividend and plans $300 million in share buybacks during fiscal 2027.
Truist upgraded Best Buy to Buy ahead of the Q2 report, citing AI-fueled demand as a growth catalyst. The stock had traded cautiously before earnings during mixed signals from peers and margin-compression concerns.
