The EPS miss vs consensus (-4.4%) combined with maintained full-year guidance creates a mixed read. The strong 2.0% comp and 38% GAAP EPS growth are positive, but the adjusted EPS miss signals margin pressure from investments. Watch for Q2 comparable sales trajectory (guidance ~1.0%, with May month-to-date up high single digits) and the CEO transition timeline. No immediate catalyst for sustained upside beyond the current quarter's momentum.
Price Chart
Executive Summary
Best Buy reported Q1 FY27 results with revenue of $8.936B (above guidance of ~1% comp growth, actual 2.0%) and GAAP diluted EPS of $1.31. However, adjusted diluted EPS of $1.28 missed the consensus estimate of $1.34 by 4.4%. The company reiterated its full-year FY27 guidance (revenue $41.2B-$42.1B, adjusted EPS $6.30-$6.60). Comparable sales grew 2.0%, driven by gaming, computing, mobile phones and services, while appliances declined. The CEO announced a planned transition later this year.
Key Financial Metrics
Key Facts
- Q1 FY27 enterprise revenue $8.936B, up 1.9% YoY from $8.767B
- GAAP diluted EPS $1.31 vs $0.95 YoY (+38%); adjusted diluted EPS $1.28 vs $1.15 YoY (+11%)
- Adjusted EPS $1.28 missed consensus estimate of $1.34 (miss of 4.4%)
- Enterprise comparable sales +2.0% vs guidance of approximately 1.0%
- Domestic online revenue $2.62B +1.4% comparable; online mix flat at 31.7%
- Full-year FY27 guidance reiterated: revenue $41.2B-$42.1B, adj. EPS $6.30-$6.60
- CEO Corie Barry to step down; Jason Bonfig named incoming CEO effective Nov 1, 2026
- Operating cash flow $375M vs $34M in prior year quarter
- Domestic gross profit rate improved 20bps to 23.7%; adjusted operating income rate 4.1%
- Revenue category reclassification moved credit card/digital content revenue into services
Financial Impact
Revenue beat internal guidance ($8.936B vs ~$8.8B implied) but adjusted EPS missed consensus. Full-year guidance maintained, providing stability without incremental upside.
Risk Factors
- Adjusted EPS missed consensus by 4.4%, potentially disappointing momentum-driven investors
- Full-year guidance maintained but provides no earnings growth acceleration catalyst
- CEO transition introduces leadership uncertainty through November 2026
- Appliance category declining 13.6% domestically signals consumer discretionary pressure on big-ticket items
- International gross profit rate declining 50bps to 21.5% on lower product margins
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000764478-26-000018 |
| Document: bby-fy27q1xexx991.htm | 0000764478-26-000018 |
| Document: bby-20260528.htm | 0000764478-26-000018 |
| Document: 0000764478-26-000018-index-headers.html | 0000764478-26-000018 |
| Document: 0000764478-26-000018-index.html | 0000764478-26-000018 |
| Document: 0000764478-26-000018.txt | 0000764478-26-000018 |
| 8-K Data (Synthetic) | 0000764478-26-000018 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 27, 2026 5w ago | 8-K | $83.56 $89.67 | ▲ +7.31% | ▲ +7.42% | $87.97 (+5.28%) |
Aug 6, 2026 8w ago | Institutional Cluster | $80.02 $87.49 | ▲ +9.34% | ▲ +8.74% | $87.97 (+9.94%) |
Jun 22, 2026 14w ago | 8-K | $75.15 $85.13 | ▲ +13.28% | ▲ +12.12% | $87.97 (+17.06%) |
Jun 9, 2026 16w ago | Court Ruling | $75.12 $78.72 | ▲ +4.79% | ▲ +3.35% | $87.97 (+17.11%) |
Jun 2, 2026 17w ago | Insider Cluster | $71.69 $77.23 | ▼ −7.73% | ▼ −8.86% | $87.97 (−22.71%) |
May 28, 2026 18w ago | 8-K | $74.73 $76.89 | ▲ +2.89% | ▲ +5.58% | $87.97 (+17.72%) |
Apr 22, 2026 23w ago | 8-K | $63.46 $59.29 | ▼ −6.57% | ▼ −9.73% | $87.97 (+38.63%) |
Mar 23, 2026 27w ago | Insider Cluster | $63.97 $66.56 | ▼ −4.05% | ▲ +3.37% | $87.97 (−37.52%) |
US Market Status
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