Best Buy Co Inc (NYSE:BBY) reported second quarter fiscal 2026 results, with revenue and earnings exceeding Wall Street expectations, but its shares moved lower as it maintained a cautious outlook for the full year.
The company posted $9.44 billion in revenue for the quarter ended August 2, 2025, surpassing the consensus estimate of $9.23 billion and representing a 1.6% increase from the same period a year earlier.
Earnings per share (EPS) came in at $1.28 on an adjusted basis, down slightly from $1.34 in Q2 2025 but above analysts’ estimate of $1.22.
Comparable store sales grew 1.6% overall, with domestic comparable sales up 1.1% and international comparable sales rising 7.6%.
Key sales drivers for the quarter included mobile phones, video gaming products, and computing devices, while sales of appliances, home theaters, tablets, and drones declined.
US online sales increased 5.1% year-over-year, accounting for roughly one-third of total domestic revenue.
Domestic revenue totaled $8.70 billion, up 0.9% from last year, while international revenue reached $740 million, up 11.3%.
Gross profit rates were slightly lower than the prior year due to product margin pressures, partially offset by improved service margins.
Best Buy incurred $114 million in restructuring charges during the quarter, related to an enterprise-wide initiative aimed at realigning resources with evolving customer behaviors and corporate strategy.
The company returned $266 million to shareholders during Q2 through dividends of $201 million and share repurchases of $65 million.
Year-to-date, total shareholder returns reached $568 million. Best Buy also announced a quarterly cash dividend of $0.95 per share, payable October 9, 2025.
For fiscal year 2026, Best Buy reaffirmed revenue guidance of $41.1 billion to $41.9 billion and adjusted EPS guidance of $6.15 to $6.30.
“Given the uncertainty of potential tariff impacts in the back half, both on consumers overall as well as our business, we feel it is prudent to maintain the annual guidance we provided last quarter,” Best Buy chief financial officer Matt Bilunas said in a statement.
“At this point, we do believe we are trending toward the higher end of our sales range.”
Despite the strong Q2 report, Best Buy shares traded down 5.5% at $71 post-earnings due to the company’s cautious outlook.