Best Buy Co., Inc. Q2 2027 Earnings Recap

Best Buy’s shares dropped 5.7% following the quarter as the cautious outlook and lack of meaningful uplift in margins failed to sustain investor confidence despite modest revenue growth and raised guidance.

Key Takeaways

• Comparable sales increased 4.1% year-over-year, marking the 10th consecutive quarter of positive comps, led by computing (+21% in business team sales) and home theater segments.
• Adjusted operating income margin expanded modestly to 4.3%, while adjusted EPS grew 15% to $1.47 on $9.8 billion revenue.
• Newer categories such as AI glasses, trading cards, and health rings saw more than double sales growth, contributing to gross profit rate expansion supported by Best Buy Ads and Marketplace initiatives.
• Traditional gaming sales declined due to difficult comparisons against the Switch 2 launch last year; mobile and major appliances showed steady but unremarkable growth.
• Management reaffirmed a cautious customer outlook emphasizing value-conscious spending and selective big-ticket purchases, with guidance raised but framed within tempered demand expectations.