Best Buy reported stronger-than-expected fiscal second-quarter 2027 results as comparable sales accelerated, growth broadened across most major product categories and management substantially raised its full-year financial outlook.
Enterprise revenue increased to $9.779 billion from $9.438 billion, representing growth of approximately 3.6%.
Enterprise comparable sales increased 4.1%, a meaningful acceleration from the 1.6% increase recorded in the prior-year quarter.
Domestic performance was even stronger.
Domestic revenue increased 4.3% to $9.07 billion from approximately $8.70 billion.
Domestic comparable sales increased 4.5%, while domestic comparable online sales rose 5.1%.
Online revenue reached approximately $3 billion and increased to 33.1% of domestic sales from 32.8% in the prior-year period.
Best Buy generated comparable-sales growth across most major merchandise categories.
The largest weighted contributors included computing, home theater and a group of emerging categories that included AI glasses and trading cards.
Those gains were partially offset by weakness in traditional gaming.
Marketplace and Best Buy Ads also continued contributing to the company’s evolving business model.
Domestic gross margin reached 24%, up from 23.4%.
Best Buy attributed the increase primarily to growth in Marketplace and Best Buy Ads along with approximately $34 million of IEEPA tariff refunds.
Those benefits were partially offset by lower product-margin rates.
Adjusted operating income margin improved to 4.3% from 3.9%.
Adjusted diluted EPS increased 15% to $1.47 from $1.28.
GAAP diluted EPS increased much faster, rising 70% to $1.48 from $0.87, although that comparison benefited from substantially lower restructuring charges.
Best Buy recorded a $6 million reduction to restructuring charges during Q2 compared with $114 million of restructuring expenses in the prior-year period.
The strength of the first half prompted management to make a substantial upward revision to fiscal 2027 expectations.
Full-year revenue is now expected between $42.3 billion and $42.8 billion, compared with the previous $41.2 billion to $42.1 billion range.
Comparable sales are now projected to increase between 1.9% and 3%.
Previously, Best Buy had expected comparable sales to range from a 1% decline to 1% growth.
Adjusted operating income margin guidance increased to 4.4% to 4.5% from 4.3% to 4.4%.
Adjusted diluted EPS guidance increased to $6.70 to $6.90.
Best Buy also continues returning capital to shareholders.
The company distributed $239 million during Q2, including $203 million of dividends and $36 million of share repurchases.
Year-to-date capital returns reached $441 million.
Best Buy expects to spend approximately $300 million on share repurchases during fiscal 2027 and maintained its quarterly dividend at $0.96 per share.
The quarter suggests that Best Buy is benefiting not only from improved demand for traditional electronics but from emerging product cycles and higher-margin initiatives such as advertising and Marketplace.
KEY QUOTES:
“We are very pleased to report we outperformed expectations in the second quarter with comparable sales growth of 4.1% and a higher-than-expected adjusted operating income rate.”
“We drove growth across almost all our major product categories as well as continued strong performance in our Best Buy Ads and Marketplace initiatives.”
Corie Barry, Chief Executive Officer of Best Buy
“The strength of our Q2 results reflects both the deliberate actions we have taken to position the business for growth and a healthy demand environment for our category.”
“We are raising our annual financial guidance due to the strong first half performance and our momentum as we enter the second half of the year.”
Jason Bonfig, Chief Customer, Product and Fulfillment Officer and Incoming Chief Executive Officer of Best Buy
