Best Buy on Thursday posted stronger-than-expected fiscal second-quarter results and lifted its full-year outlook, offering fresh evidence that the consumer electronics retailer’s recovery is gaining traction.
The company said comparable sales rose 4.1% during the quarter, well above its previous forecast of 1% growth, and it delivered a “higher-than-expected” adjusted operating income rate. Best Buy said growth was broad-based across its major product categories, with a notable surge in computing helping to drive the quarter.
For the quarter ended Aug. 1, Best Buy reported net income of $315 million, or $1.48 per share, compared with $186 million, or 87 cents per share, in the year-ago period. On an adjusted basis, the company earned $1.47 per share. Wall Street analysts had expected lower results, according to a survey by LSEG, though the report did not provide the specific consensus figures.
Guidance raised on strong first half
Incoming CEO Jason Bonfig, who will take over from current CEO Corie Barry on Nov. 1, pointed to the company’s “strong first half performance” as the reason for the improved full-year guidance. Best Buy now expects revenue of between $42.3 billion and $42.8 billion, up from its prior range of $41.2 billion to $42.1 billion.
The company also raised its comparable sales outlook, now expecting growth of 1.9% to 3% for the full fiscal year, compared with its earlier forecast of a decline of 1% to an increase of 1%. Adjusted earnings per share are now projected to be between $6.70 and $6.90, versus the previous range of $6.30 to $6.60.
Bonfig said in a statement that 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.”
Tariffs, memory chips, and consumer caution
Best Buy said its gross profit rate in the quarter benefited from $34 million in tariff refunds, but the company continues to navigate industry-wide challenges including tariffs and soaring memory chip prices. Management reiterated that customers are still spending but remain focused on value and sales, often shopping with specific needs and budgets.
These results mark a turning point for Best Buy, which had been in a sales slump following declining foot traffic and weaker consumer confidence in recent quarters. Bonfig has said he is confident in his ability to refresh the company’s product lineup and enhance the customer experience.
Part of that strategy includes opening smaller-format stores to expand Best Buy’s presence in areas that cannot support a full-size location. Bonfig has also said he plans to use artificial intelligence to improve the in-store experience and streamline corporate processes.
The earnings report was the last under Barry’s leadership, as the company prepares for the leadership transition that was announced as part of a broader push to accelerate Best Buy’s business.
Source: www.cnbc.com — https://www.cnbc.com/2026/08/27/best-buy-bby-q2-2027-earnings.html
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