Best Buy 2026 Q2 Earnings Declining Profits Despite Revenue Growth

Best Buy (BBY) reported its fiscal 2026 Q2 earnings on Sep 05th, 2025. The retailer posted a 1.6% revenue increase year-over-year, but profits fell sharply. The results were accompanied by cautious forward guidance, highlighting ongoing cost and supply chain pressures.

Despite a revenue increase to $9.44 billion, Best Buy’s net income and earnings per share both declined significantly, falling short of expectations. The company provided full-year guidance that reflected a measured growth path, emphasizing cost control and digital initiatives.

Revenue
Best Buy’s revenue rose 1.6% year-over-year to $9.44 billion, driven by strong performance across several segments. Computing and Mobile Phones generated $4.25 billion in revenue, while Consumer Electronics brought in $2.55 billion. Appliance sales amounted to $2.18 billion, and the Entertainment segment contributed $1.46 billion. Services revenue totaled $1.27 billion, with the remaining $94.38 million coming from other business lines.

Earnings/Net Income
Best Buy’s earnings per share (EPS) dropped by 34.8% to $0.88 in 2026 Q2, compared to $1.35 in the same period the previous year. The company’s net income also fell by 36.1%, declining to $186 million from $291 million a year ago. The earnings report signals a challenging quarter, particularly for profitability.

Price Action
Following the earnings release, Best Buy’s stock price edged down by 1.03% during the latest trading day. However, the stock has shown resilience in the short term, with a 4.83% gain during the most recent full trading week and a 13.72% month-to-date increase.

Post-Earnings Price Action Review
Corie Barry, Best Buy’s CEO, emphasized a strong Q2 performance, citing a 5.2% revenue increase to $9.44 billion and an EPS of $0.88, driven by improved customer traffic and higher online sales. She acknowledged challenges in inventory management and supply chain costs, but expressed confidence in the company’s strategic investments in omnichannel retail and AI-driven personalization. Barry described the company's outlook as cautious yet optimistic, stressing the importance of operational discipline while accelerating growth in high-potential areas. She reaffirmed the commitment to enhancing customer experience and expanding product offerings to drive long-term value.

Guidance
Best Buy’s CEO guided for full-year 2026 revenue growth of 4–6%, with earnings per share expected to reach $3.60–$3.80. The guidance was supported by cost optimization and digital expansion initiatives. Capital expenditures are projected to remain stable at $600–$700 million, with a focus on store modernization and technology infrastructure. Barry expressed confidence in the company’s ability to maintain profitability and outperform broader retail trends through continued innovation and customer-centric execution.

Additional News
In Nigeria, Punch Newspapers reported on several developments in the days leading up to Best Buy’s earnings. A new fuel tax was introduced under the Harmonized Tax Act, impacting transportation and logistics across the country. Meanwhile, a tragic accident involving a Dangote truck claimed the life of a young woman, sparking public outrage. In the tech sector, Google avoided a regulatory mandate to sell Chrome, and inDrive launched a technology award for women entrepreneurs. These events highlight a period of economic and political activity, though none directly affected Best Buy’s operations.