Best Buy raises guidance after Q2 beat, but shares drop.

• Best Buy Co. Inc.
• 27 August 2026 14:12:29

Source: Sharecast

The consumer electronics retailer said comparable sales increased 4.1%, well ahead of analysts’ expectations of 1.3% growth, while revenue rose to $9.78bn from $9.44bn a year earlier.

Net earnings jumped to $315m from $186m, with diluted earnings per share up 70% to $1.48. Adjusted EPS rose 15% to $1.47.

Computing, home theatre, and emerging categories, including AI glasses and trading cards, were among the biggest drivers of domestic comparable sales growth.

Chief executive Corie Barry said: “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.”

However, shares were down 7.2% at $81.17 before the opening bell on Thursday.

Analysts pointed to soaring memory costs, which have pushed up computer prices and contributed to a decline in the number of computers actually sold, as one reason for the negative share-price reaction despite the headline beat.

Best Buy lifted its FY27 revenue forecast to $42.3bn-$42.8bn from $41.2bn-$42.1bn, while adjusted EPS is now expected at $6.70-$6.90, up from $6.30-$6.60.

Comparable sales are forecast to grow 1.9%-3.0%, compared with previous guidance of between a 1% decline and 1% growth.