olivLaw · US equity research
Best Buy Co., Inc. BBY
Retail-Radio, Tv & Consumer Electronics Stores · SIC 5731 · Vertical: Home furniture and electronics stores (SIC 57xx)
Best Buy Co., Inc. (NYSE: BBY) is an omnichannel technology retailer operating in the U.S. and Canada, which reported revenue of $41.7 billion in fiscal 2026. In its second quarter of FY27, enterprise comparable sales rose 4.1%, and management raised full-year guidance for comparable sales to 1.9% to 3.0%. Results still depend on consumer demand, tariffs and competitive pressure.
At the close of 04 Nov 2026, Best Buy Co., Inc. (BBY) stock was 101.36 USD (+7.98% on the day), with market capitalisation 21.3 bn USD, P/E 16.8 on diluted EPS of 6.02 USD over the last 12 months, dividend yield 3.77%, beta 1.09, 52-week range 55.52–101.36 USD. Latest reported quarter (Q2 2027): revenue of 9.8 bn USD (+3.6% YoY), net income of 315.0 m USD (+69.4% YoY), diluted EPS 1.48 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 62.2
- strong (55–70)
- Bollinger (20, 2)
- 85.20 – 103.39
- in the upper half of the band · %B 0.89 · band width 19.3%
- SMA 50 / 200
- 91.02 / 75.68
- uptrend (price > SMA50 > SMA200)
- MACD (12, 26, 9)
- 2.33 / 2.15
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +16.0% | −1.1% | +17.1 pp | — |
| 3 months | +20.0% | −0.5% | +20.4 pp | — |
| 6 months | +72.7% | +4.4% | +68.3 pp | — |
| Year to date | +51.4% | +12.3% | +39.1 pp | — |
| 1 year | +27.7% | +13.5% | +14.2 pp | +11.6% |
| 3 years | +50.9% | +76.4% | −25.6 pp | −11.7% |
| 5 years | −21.5% | +63.7% | −85.1 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q2 2027 · 01 Aug 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 | Q4 '26 | Q1 '27 | Q2 '27 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 9.4 bn | 13.9 bn | 8.8 bn | 9.4 bn | 9.7 bn | 13.8 bn | 8.9 bn | 9.8 bn |
| Cost of revenue | 7.2 bn | 11.0 bn | 6.7 bn | 7.2 bn | 7.4 bn | 10.9 bn | 6.8 bn | 7.4 bn |
| Gross profit | 2.2 bn | 2.9 bn | 2.0 bn | 2.2 bn | 2.2 bn | 2.9 bn | 2.1 bn | 2.3 bn |
| SG&A | 1.9 bn | 2.2 bn | 1.7 bn | 1.8 bn | 1.9 bn | 2.2 bn | 1.7 bn | 1.9 bn |
| Operating income | 350.0 m | 217.0 m | 219.0 m | 251.0 m | 198.0 m | 721.0 m | 370.0 m | 421.0 m |
| Depreciation & amortisation | 213.0 m ≈ | 216.0 m | 211.0 m | 211.0 m ≈ | 206.0 m ≈ | 203.0 m | 194.0 m | 195.0 m ≈ |
| Interest expense | 13.0 m | 13.0 m | 12.0 m | 12.0 m | 12.0 m | 11.0 m | 11.0 m | 11.0 m |
| Pre-tax income | 356.0 m | 223.0 m | 222.0 m | 253.0 m | 205.0 m | 724.0 m | 378.0 m | 430.0 m |
| Income tax | 85.0 m | 106.0 m | 19.0 m | 68.0 m | 64.0 m | 186.0 m | 102.0 m | 116.0 m |
| Net income | 273.0 m | 117.0 m | 202.0 m | 186.0 m | 140.0 m | 541.0 m | 276.0 m | 315.0 m |
| Diluted EPS | 1.26 | 0.54 ≈ | 0.95 | 0.87 | 0.66 | 2.57 ≈ | 1.31 | 1.48 |
| Operating cash flow | -256.0 m ≈ | 1.5 bn | 34.0 m | 749.0 m ≈ | -99.0 m ≈ | 1.3 bn | 375.0 m | 921.0 m ≈ |
| Capex | 193.0 m ≈ | 178.0 m | 166.0 m | 175.0 m ≈ | 188.0 m ≈ | 175.0 m | 160.0 m | 184.0 m ≈ |
| Dividends paid | 202.0 m ≈ | 200.0 m | 202.0 m | 201.0 m ≈ | 199.0 m ≈ | 199.0 m | 202.0 m | 203.0 m ≈ |
| Share repurchases | 137.0 m ≈ | 215.0 m | 100.0 m | 65.0 m ≈ | 35.0 m ≈ | 73.0 m | 0 | 36.0 m ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 81 percentile of its own 43-quarter history (min 9.9, median 13.5, max 27.2; quarters with earnings only).
Fiscal years
| Fiscal year | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 42.9 bn | 43.6 bn | 47.3 bn | 51.8 bn | 46.3 bn | 43.5 bn | 41.5 bn | 41.7 bn |
| Revenue YoY | +1.7% | +1.8% | +8.3% | +9.5% | −10.6% | −6.1% | −4.4% | +0.4% |
| Net income | 1.5 bn | 1.5 bn | 1.8 bn | 2.5 bn | 1.4 bn | 1.2 bn | 927.0 m | 1.1 bn |
| Net income YoY | +46.4% | +5.3% | +16.7% | +36.5% | −42.2% | −12.5% | −25.3% | +15.3% |
| Diluted EPS | 5.20 | 5.75 | 6.84 | 9.84 | 6.29 | 5.68 | 4.28 | 5.04 |
| Diluted EPS YoY | +59.5% | +10.6% | +19.0% | +43.9% | −36.1% | −9.7% | −24.6% | +17.8% |
| net % | 3.4% | 3.5% | 3.8% | 4.7% | 3.1% | 2.9% | 2.2% | 2.6% |
| Free cash flow | 1.6 bn | 1.8 bn | 4.2 bn | 2.5 bn | 894.0 m | 675.0 m | 1.4 bn | 1.3 bn |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2026 · 31 Jan 2026
- Cash
- 1.7 bn USD
- Financial debt
- 11.0 m USD
- Net debt
- -1.7 bn USD
- Equity
- 3.0 bn USD
- Total assets
- 14.7 bn USD
- Debt / equity
- 0.00x
- Current ratio
- 1.11x
- ROE
- 37.0%
- ROA
- 7.3%
- FCF margin
- 3.0%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 47.3 bn | 51.8 bn | 46.3 bn | 43.5 bn | 41.5 bn | 41.7 bn | SEC (XBRL)· 18 Mar 2026verified |
| Cost of revenue | 36.7 bn | 40.1 bn | 36.4 bn | 33.8 bn | 32.1 bn | 32.3 bn | SEC (XBRL)· 18 Mar 2026verified |
| Gross profit | 10.6 bn | 11.6 bn | 9.9 bn | 9.6 bn | 9.4 bn | 9.4 bn | SEC (XBRL)· 18 Mar 2026verified |
| SG&A | 7.9 bn | 8.6 bn | 8.0 bn | 7.9 bn | 7.7 bn | 7.6 bn | SEC (XBRL)· 18 Mar 2026verified |
| Operating income | 2.4 bn | 3.0 bn | 1.8 bn | 1.6 bn | 1.3 bn | 1.4 bn | SEC (XBRL)· 18 Mar 2026verified |
| Depreciation & amortisation | 839.0 m | 869.0 m | 918.0 m | 923.0 m | 866.0 m | 831.0 m | SEC (XBRL)· 18 Mar 2026verified |
| EBITDA | 3.2 bn ≈ | 3.9 bn ≈ | 2.7 bn ≈ | 2.5 bn ≈ | 2.1 bn ≈ | 2.2 bn ≈ | SEC (XBRL)· 18 Mar 2026derived |
| Interest expense | 52.0 m | 25.0 m | 35.0 m | 52.0 m | 51.0 m | 47.0 m | SEC (XBRL)· 18 Mar 2026verified |
| Pre-tax income | 2.4 bn | 3.0 bn | 1.8 bn | 1.6 bn | 1.3 bn | 1.4 bn | SEC (XBRL)· 18 Mar 2026verified |
| Income tax | 579.0 m | 574.0 m | 370.0 m | 381.0 m | 372.0 m | 337.0 m | SEC (XBRL)· 18 Mar 2026verified |
| Net income | 1.8 bn | 2.5 bn | 1.4 bn | 1.2 bn | 927.0 m | 1.1 bn | SEC (XBRL)· 18 Mar 2026verified |
| Diluted EPS | 6.84 | 9.84 | 6.29 | 5.68 | 4.28 | 5.04 | SEC (XBRL)· 18 Mar 2026verified |
| Weighted average diluted shares | 263.0 m | 249.3 m | 225.7 m | 218.5 m | 216.6 m | 212.1 m | SEC (XBRL)· 18 Mar 2026verified |
| Dividend per share | 2.20 | 2.80 | 3.52 | 3.68 | 3.76 | 3.80 | SEC (XBRL)· 18 Mar 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 5.5 bn | 2.9 bn | 1.9 bn | 1.4 bn | 1.6 bn | 1.7 bn | SEC (XBRL)· 18 Mar 2026verified |
| Inventories | 5.6 bn | 6.0 bn | 5.1 bn | 5.0 bn | 5.1 bn | 5.2 bn | SEC (XBRL)· 18 Mar 2026verified |
| Current assets | 12.5 bn | 10.5 bn | 8.8 bn | 7.9 bn | 8.2 bn | 8.5 bn | SEC (XBRL)· 18 Mar 2026verified |
| Property, plant & equipment, net | 2.3 bn | 2.3 bn | 2.4 bn | 2.3 bn | 2.1 bn | 2.0 bn | SEC (XBRL)· 18 Mar 2026verified |
| Goodwill | 986.0 m | 1.4 bn | 1.4 bn | 1.4 bn | 908.0 m | 790.0 m | SEC (XBRL)· 18 Mar 2026verified |
| Total assets | 19.1 bn | 17.5 bn | 15.8 bn | 15.0 bn | 14.8 bn | 14.7 bn | SEC (XBRL)· 18 Mar 2026verified |
| Accounts payable | 7.0 bn | 6.8 bn | 5.7 bn | 4.6 bn | 5.0 bn | 4.7 bn | SEC (XBRL)· 18 Mar 2026verified |
| Short-term debt | 110.0 m | 13.0 m | 16.0 m | 13.0 m | 10.0 m | 11.0 m | SEC (XBRL)· 18 Mar 2026verified |
| Long-term debt | 1.3 bn | 1.2 bn | 1.2 bn | 1.2 bn | 1.1 bn | — | SEC (XBRL)· 19 Mar 2025verified |
| Current liabilities | 10.5 bn | 10.7 bn | 9.0 bn | 7.9 bn | 8.0 bn | 7.7 bn | SEC (XBRL)· 18 Mar 2026verified |
| Equity | 4.6 bn | 3.0 bn | 2.8 bn | 3.1 bn | 2.8 bn | 3.0 bn | SEC (XBRL)· 18 Mar 2026verified |
Cash flow · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 4.9 bn | 3.3 bn | 1.8 bn | 1.5 bn | 2.1 bn | 2.0 bn | SEC (XBRL)· 18 Mar 2026verified |
| Capex | 713.0 m | 737.0 m | 930.0 m | 795.0 m | 706.0 m | 704.0 m | SEC (XBRL)· 18 Mar 2026verified |
| Free cash flow | 4.2 bn ≈ | 2.5 bn ≈ | 894.0 m ≈ | 675.0 m ≈ | 1.4 bn ≈ | 1.3 bn ≈ | SEC (XBRL)· 18 Mar 2026derived |
| Investing cash flow | -788.0 m | -1.4 bn | -962.0 m | -781.0 m | -704.0 m | -730.0 m | SEC (XBRL)· 18 Mar 2026verified |
| Financing cash flow | -876.0 m | -4.3 bn | -1.8 bn | -1.1 bn | -1.3 bn | -1.1 bn | SEC (XBRL)· 18 Mar 2026verified |
| Dividends paid | 568.0 m | 688.0 m | 789.0 m | 801.0 m | 807.0 m | 801.0 m | SEC (XBRL)· 18 Mar 2026verified |
| Share repurchases | 312.0 m | 3.5 bn | 1.0 bn | 340.0 m | 500.0 m | 273.0 m | SEC (XBRL)· 18 Mar 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 64 / 100
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 21.3 bn USD
Key indicators
Coverage and freshness
Score by group
- Balance sheet85
- Growth0
- Quality82
- Returns78
- Valuation68
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 49.94 – 157.39 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)104.69 – 152.59 (Mid 123.40)WACC 9.3% · starting FCFF 1.8 bn USD · terminal value share of EV 72%The WACC × g sensitivity gives the method's bounds; these are not probabilities.Reverse DCF: starting growth implied by the price (fading linearly to terminal growth, everything else fixed): -12.2%
- Peers: EV/EBITDAunavailable · not enough peers
- Peers: P/E64.70 – 157.39 (Mid 99.88)7 companies used · median multiple 16.6x · quartiles 10.7x – 26.1xARHS, GME, HTLM, IZM, LOVE, RH, WSM
- Dividend discount (DDM)49.94 – 67.16 (Mid 57.28)
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Neutral profile · Score 64/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 74.1% | 100 (on a fixed band) | 10% |
| Net margin · Quality | 3.0% | 33 (vs peers) | 6% |
| FCF conversion · Quality | 139.0% | 100 (on a fixed band) | 6% |
| Revenue CAGR 3Y · Growth | -3.4% | 0 (on a fixed band) | 8% |
| EPS CAGR 3Y · Growth | -7.1% | 0 (on a fixed band) | 8% |
| Net debt / EBITDA · Balance sheet | -0.9x | 100 (on a fixed band) | 10% |
| Interest coverage · Balance sheet | 38.0x | 100 (on a fixed band) | 6% |
| Current ratio · Balance sheet | 1.1x | 26 (on a fixed band) | 4% |
| P/E (TTM) · Valuation | 16.8x | 43 (vs peers) | 10% |
| EV/EBITDA · Valuation | 7.6x | 67 (on a fixed band) | 10% |
| FCF yield · Valuation | 8.3% | 100 (on a fixed band) | 8% |
| Shareholder yield (distributions) · Returns | 4.5% | 64 (on a fixed band) | 6% |
| Payout ratio (FCF) · Returns | 45.4% | 100 (on a fixed band) | 4% |
Score groups
- Balance sheet85/100 · 3/3 factors with a value
- Growth0/100 · 2/2 factors with a value
- Quality82/100 · 3/3 factors with a value
- Returns78/100 · 2/2 factors with a value
- Valuation68/100 · 3/3 factors with a value
Memo
Best Buy Co., Inc. (BBY). Latest full fiscal year: 2026; data up to 2026-08-01.
Figures computed from the financial statements: revenue 41.7 bn USD in 2026; YoY growth 0.4%; net margin 3.0%; ROE 43.1%; net debt/EBITDA -0.9x.
The estimated value range is 64.70–152.59 USD per share (median of 3 methods, agreement: medium); assumptions are illustrative. Against the central value of 99.88 USD, the price of 101.36 USD leaves a potential of -1.5% (value / price − 1) and a margin of safety of -1.5% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 64/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- ROIC: 74.1%
- FCF conversion: 139.0%
- Net debt / EBITDA: -0.9x
- Interest coverage: 38.0x
- FCF yield: 8.3%
- Payout ratio (FCF): 45.4%
What contradicts it
- Revenue CAGR 3Y: -3.4%
- EPS CAGR 3Y: -7.1%
- Current ratio: 1.1x
Versus the vertical median
Home furniture and electronics stores (SIC 57xx) · same major group (2-digit SIC) · compared with 9 companies
The size band was not applied: too few companies would have remained; the vertical includes much smaller or larger companies.
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| WSMWilliams-Sonoma, Inc. | 31.8 bn | 27.6 | 55.0% | 14.7% | +1.2% | +50% / +188% |
| BBYBest Buy Co., Inc. | 21.3 bn | 16.8 | 43.1% | 3.0% | +0.4% | +28% / +51% |
| GMEGameStop Corp. | 12.7 bn | 16.6 | 15.8% | 25.2% | −5.1% | +12% / +73% |
| RHRh | 2.7 bn | 25.8 | 280.7% | 3.2% | +8.1% | −8% / −46% |
| ARHSArhaus, Inc. | 1.8 bn | 26.5 | 17.3% | 4.9% | +8.5% | +27% / +41% |
| LOVEThe Lovesac Company | 248.2 m | 14.2 | 8.8% | 2.6% | +2.4% | +20% / −17% |
| HTLMHomesToLife Ltd | 98.7 m | 6.1 | 85.9% | 4.4% | +12.8% | −62% / unavailable |
| AMCIAmc Robotics Corporation | 35.8 m | — | -392.8% | -506.4% | −41.4% | −82% / −85% |
| IZMIczoom Group Inc. | 8.0 m | 7.3 | 7.8% | 0.6% | +5.1% | −26% / −94% |
| HVTHaverty Furniture Companies, Inc | — | — | 8.1% | 3.1% | +5.0% | +23% / −6% |
1- and 3-year price returns: for BBY from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 55.52 Total return -42% · Per year -42% | 98.57 Total return 1% · Per year 1% | 149.03 Total return 51% · Per year 51% |
| 3 years | 45.64 Total return -47% · Per year -19% | 91.92 Total return 1% · Per year 0% | 153.74 Total return 65% · Per year 18% |
| 5 years | 37.51 Total return -52% · Per year -13% | 85.71 Total return 2% · Per year 0% | 158.59 Total return 79% · Per year 12% |
- Exit P/E± 22.98
- Net margin± 16.09
- Annual revenue growth± 14.29
- Annual dilution± 1.35
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
Best Buy Co., Inc. (NYSE: BBY) is an omnichannel technology retailer operating in the U.S. and Canada, which reported revenue of $41.7 billion in fiscal 2026 1. In its second quarter of FY27, enterprise comparable sales rose 4.1% 3, and management raised full-year guidance for comparable sales to 1.9% to 3.0% 3. Results still depend on consumer demand, tariffs and competitive pressure.
SWOT
Strengths
- The company's strength lies in its omnichannel network, which combines stores, online orders and in-home services, along with solid relationships with major vendors 1.
- Growth in Best Buy Ads and Marketplace brings commission and advertising revenue without large inventory investment, which could support margins 3.
- Specialist in-store expertise and Geek Squad services differentiate the company from rivals competing purely on price 13.
Weaknesses
- Its cost structure is higher than that of some competitors, which can create margin pressure against lower-cost retailers 1.
- Heavy reliance on a few large suppliers and on imports from Asia creates vulnerability to supply chain disruption 1.
- The International segment reported a decline in comparable sales in the second quarter of FY27, showing sensitivity to exchange rates and demand 3.
Opportunities
- Expanding Best Buy Marketplace and the Best Buy Ads network could open new revenue streams with limited inventory investment 13.
- Integrating artificial intelligence into the shopping experience and catalog could attract new customers if execution is strong 1.
- If efficiency programs keep reducing costs, the company could fund investments and strategic projects without weakening service 1.
Threats
- Macroeconomic pressure and lower discretionary spending could reduce demand for electronics and appliances 1.
- Geopolitical tensions, tariffs and disruption of trade routes could raise costs and disrupt supply 1.
- Growing competition from online retailers and AI-driven platforms could pressure revenue and profitability 1.
Risks
- Consumer demandhigh
Demand for discretionary products could fall if economic conditions weaken, and device replacement frequency could decline 1.
- Tariffs and international tradehigh
Changes in trade policy could raise costs of vendor-imported products, and tariff refunds remain uncertain 12.
- Digital competitionmedium
Online retailers and AI-enabled platforms could attract customers with fast delivery and lower prices, which could reduce margins 1.
- Supplier concentrationmedium
Concentrated purchasing among a few suppliers and the absence of long-term contracts could create product availability or commercial term problems 1.
- Workforce and wagesmedium
Difficulty attracting and retaining qualified employees, together with wage pressure, could affect service and profitability 1.
Investment thesis
What would need to be true (bull case)
- If comparable sales growth holds and efficiency programs support margins, the company could exceed its updated guidance for the fiscal year 3.
- Growth in Marketplace and Best Buy Ads could add higher-margin revenue without large inventory investment 13.
- The omnichannel position and specialist services could strengthen customer loyalty in a competitive market 1.
What would break the thesis
- If discretionary consumer spending falls, comparable sales could turn negative again, as they did in earlier years 1.
- Tariffs and geopolitical risks could raise purchasing costs and complicate inventory planning 1.
- Intense competition from online retailers could limit the company's ability to hold margins 1.
What to watch
- Updates on comparable sales and guidance for the third quarterQ3 FY27
- Progress on IEEPA tariff refunds and the effect on gross marginQ3 FY27
- Results of Best Buy Ads and Marketplace in quarterly reports2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
Best Buy seeks to combine tech expertise with a human touch, serving customers online, in stores and in their homes 1. The company had 1,068 stores at the end of fiscal 2026 and about 82,000 employees in the U.S. and Canada 1. It runs two reportable segments, Domestic and International, and its offerings span computing, mobile phones, consumer electronics, appliances, entertainment and services 1.
In fiscal 2026 comparable sales returned to growth, and the company launched Best Buy Marketplace in its Domestic segment while growing Best Buy Ads 1. In the first half of FY27 management raised its annual guidance, citing strong first-half performance 3.
Market context
Best Buy operates in the consumer electronics and appliance retail market in the U.S. and Canada, where demand depends on product replacement cycles and technology innovation 1. The company describes the category as sensitive to macroeconomic conditions and discretionary consumer spending 1.
The market is also exposed to tariffs and global supply chains, since the company directly imports only a small part of its assortment but relies on vendor imports from China, Mexico and Southeast Asia 1. The U.S. Supreme Court ruled in February 2026 that tariffs imposed under IEEPA were unauthorized, but the treatment of refunds remains uncertain 2.
Trends
- Technological innovation and artificial intelligencemixed
The rapid pace of innovation, including AI integration into products, could speed up product replacement and create new categories, but could also lead to excess inventory if the company reacts slowly 1.
- E-commerce and fast deliverymixed
Customers increasingly favor online orders with fast delivery, and Best Buy grew comparable online sales in the second quarter of FY27 3. Price pressure and delivery costs could weigh on margins 1.
- Tariffs and trade policymixed
Changes in tariffs and trade policy could alter product costs and inventory planning, and tariff refunds, partly recognized already, could influence margins 13.
- Wage pressure and labor costsheadwind
A competitive labor market could raise wage and benefit costs, and if these costs rise faster than revenue, profitability could be affected 1.
Competitive position
Best Buy faces competition from multi-channel retailers, e-commerce businesses, technology service providers, traditional store-based retailers, vendors selling direct and mobile network carriers 1. Some competitors have lower cost structures and compete mainly on price 1.
The company aims to stay competitive through service, in-home support, a curated assortment and vendor partnerships, but its higher cost structure could create margin pressure 1. Price-matching policies are also a tool to defend its position 1.
- AmazonAMZN
Online retailer with fast delivery and direct competition in electronics and marketplace sales, cited as representative of online retailers 1.
- WalmartWMT
Multi-channel retailer competing on price and online orders with in-store pickup, a category named in the source 1.
- Mobile network carriers
Mobile carriers compete through direct sales of phones and services, explicitly named in the sources 1.
- Vendor direct-to-consumer channels
Manufacturers selling directly to customers form another source of competition, and vendor direct channels are mentioned among risks 1.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
- Bose’s QuietComfort Headphones are more than half offThe Verge · 04 Nov 2026 · EN
- Google’s Pixel 11 phones are up to 27 percent offThe Verge · 04 Nov 2026 · EN
- The Pixel Buds Pro 2 have returned to their lowest price to dateThe Verge · 03 Nov 2026 · EN
- Google’s Gemini-powered Home Speaker is already on sale for 20 percent offThe Verge · 03 Nov 2026 · EN
- Best Buy is bundling a $100 gift card with touchscreen MacBook Pro preordersThe Verge · 31 Oct 2026 · EN
- Google’s latest Nest Learning Thermostat is $60 off just in time for sweater weatherThe Verge · 30 Oct 2026 · EN
- There’s one week left to preorder the Ocarina of Time remake for $10 offThe Verge · 29 Oct 2026 · EN
- Acer is bringing a Predator gaming handheld to the US for the first timeThe Verge · 27 Oct 2026 · EN
- Nothing’s eye-catching Ear 3A earbuds are matching their best price to dateThe Verge · 26 Oct 2026 · EN
- Remarkable’s refurbished Paper Pro Move bundle is over $100 offThe Verge · 26 Oct 2026 · EN
- LG’s brilliant C6 OLED TV is already $400 off ahead of Black FridayThe Verge · 24 Oct 2026 · EN
- Soundcore’s latest noise-crushing headphones are on sale for a new low priceThe Verge · 23 Oct 2026 · EN
- Walmart, Best Buy and other stores now use digital price tags. Critics say they could lead to different prices for different shoppers.MarketWatch — Top Stories · 23 Oct 2026 · EN
- The new Fire TV Stick 4K is already half offThe Verge · 22 Oct 2026 · EN
- Samsung’s 5K monitor has good gaming chops and a great priceThe Verge · 21 Oct 2026 · EN
- DJI’s Osmo Pocket 3 vlogging camera is a good deal at under $400The Verge · 20 Oct 2026 · EN
- Best Buy launches new gaming hub ahead of 'Zelda' and 'Grand Theft Auto VI'CNBC — Top News · 20 Oct 2026 · EN
- Apple’s last-gen Mac Mini with the M4 is $150 offThe Verge · 19 Oct 2026 · EN
- Lenovo’s fast, comfy SteamOS handheld is hundreds offThe Verge · 18 Oct 2026 · EN
- NVIDIA sărbătorește lansarea RTX Spark în șase orașe din întreaga lume - Unite.AISurge — Google News · 17 Oct 2026 · RO
SEC filings
- Quarterly report04 Sept 2026
- Current report27 Aug 2026Results of operations · Financial statements and exhibits
- Current report03 Aug 2026Departure or appointment of officers · Financial statements and exhibits
- Current report22 Jun 2026Departure or appointment of officers · Financial statements and exhibits
- Current report17 Jun 2026Shareholder vote
- Quarterly report05 Jun 2026
- Current report28 May 2026Results of operations · Financial statements and exhibits
- Proxy statement30 Apr 2026
- Current report22 Apr 2026Departure or appointment of officers · Financial statements and exhibits
- Annual report18 Mar 2026
Sources
- [1] Form 10-K, fiscal year ended 2026-01-31 · SEC / Best Buy Co., Inc. · 18 Mar 2026
- [2] Form 10-Q, quarter ended 2026-08-01 · SEC / Best Buy Co., Inc. · 04 Sept 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Best Buy Co., Inc. · 27 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.