Key Takeaways for Best Buy Stock as of August 2026
- Comp Sales Surge: Best Buy’s Q2 FY27 comparable sales grew 4.1% against a ~1% guide, with revenue reaching $9.78B and adjusted EPS climbing 15% YoY to $1.47.
- Guidance Raised: Best Buy raised full-year EPS guidance to $6.70 to $6.90.
- Computing Leads Again: Computing posted its 10th straight quarter of positive comps even as memory chip costs pushed average selling prices up in the mid-teens percentage range while units fell by high single digits.
- Memory Storm Warning: Jason Bonfig called rising memory chip costs a “memory storm” the company aims to weather through vendor partnerships and trade-in tools.
Best Buy’s Q2 Comp Sales Jump 4.1% as a Tariff Refund Boosts the Beat
Best Buy (BBY) reported second quarter fiscal 2027 results on Thursday, August 27, and comparable sales grew 4.1% against a guide of roughly 1% heading into the print.
Revenue reached $9.78 billion, up 3.6% year over year, and adjusted diluted earnings per share climbed 15% to $1.47. GAAP diluted EPS jumped to $1.48 from $0.87, a 70% increase, while GAAP operating income more than doubled to $421 million from $251 million, widening operating margin by 1.6 percentage points to 4.3%.
Computing carried the quarter, posting its 10th consecutive quarter of positive comparable sales, with the Best Buy Business team growing sales 21% year over year. Home theater ranked as the second-largest weighted comp driver, with domestic TV sales up more than 10% following the mid-quarter launch of RGB television technology. A cluster of emerging categories, AI glasses and health rings among them, more than doubled in sales, and mobile phones logged a sixth straight quarter of growth. Traditional gaming comps declined as the company lapped last year’s Switch 2 launch.
That strength came with a cost. Best Buy’s adjusted operating income rate of 4.3% included a $34 million benefit from tariff refunds, a one-time item management expects to recur at a similar size in the third quarter before fading. Computing’s average selling prices rose in the mid-teens percentage range during the quarter as memory chip costs climbed, while unit volume fell by high single digits, a dynamic incoming CEO Jason Bonfig addressed directly on the Q2 earnings call: “We feel like our model in computing can find ways where we can weather this memory storm, so to speak.” That framing puts a specific cost pressure on the category responsible for much of the quarter’s growth, and Best Buy stock now carries that pressure into a back half where management still expects computing gains to slow.
Management raised full-year guidance on the back of the quarter, lifting revenue to a range of $42.3 billion to $42.8 billion from $41.2 billion to $42.1 billion, and adjusted EPS to $6.70 to $6.90 from $6.30 to $6.60. Comparable sales guidance moved to 1.9% to 3% growth for the year, up from a range spanning a 1% decline to 1% growth. Domestic gross profit rate expanded 60 basis points to 24%, helped by growth in Marketplace and Best Buy Ads alongside the tariff refund, while adjusted SG&A rose $94 million domestically on higher incentive compensation tied to the stronger results themselves.
TIKR Values Best Buy Stock at $107, Pricing In Sustained Comp Growth
TIKR’s mid-case model values Best Buy stock at $107 by early 2031, implying 28% total return from the current price of $84, or 6% annualized over the next 4.4 years.
That 6% annualized return positions Best Buy stock as a value holding built on cash flow and earnings durability rather than a high-growth compounder, even after a quarter that beat on nearly every reported metric.
The model’s upside case leans on the same growth engines that just carried the quarter: computing and home theater performance holding up, with Marketplace and Best Buy Ads adding a second layer of profit expansion, even as memory costs squeeze margin on Best Buy’s largest category. Management’s own guidance raise, built on real comp strength rather than the tariff benefit alone, gives the model’s growth assumptions a foundation the quarter already delivered.
Should You Invest in Best Buy Co., Inc.?
The only way to really know is to look at the numbers yourself. TIKR gives you free access to the same institutional-quality financial data that professional analysts use to answer exactly that question.
Pull up Best Buy Co., Inc. stock and you’ll see years of historical financials, what Wall Street analysts expect for revenue and earnings in the quarters ahead, how valuation multiples have moved over time, and whether price targets are trending up or down.
You can build a free watchlist to track Best Buy Co., Inc. alongside every other stock on your radar. No credit card required. Just the data you need to decide for yourself.
Access Professional Tools to Analyze BBY stock on TIKR for Free →
Looking for New Opportunities?
- See what stocks billionaire investors are buying so you can follow the smart money.
- Analyze stocks in as little as 5 minutes with TIKR’s all-in-one, easy-to-use platform.
- The more rocks you overturn… the more opportunities you’ll uncover. Search 100K+ global stocks, global top investor holdings, and more with TIKR.
Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
