Best Buy Q1 Revenue Exceeds Expectations, Same-Store Sales Turn Positive for the First Time in Two Years, Stock Price Rises Over 7%

US consumer electronics retailer Best Buy released its financial report for the first quarter of the fiscal year 2026, with both revenue and earnings exceeding market expectations, causing the stock price to rise by 7.1% to $69.57.

The net profit for the first quarter was $276 million, or $1.31 per share, a significant increase from the $202 million of the same period last year; the adjusted earnings per share were $1.28, exceeding analysts' expectations of $1.23. Revenue was $8.94 billion, a year-over-year increase of 1.9%, surpassing analysts' expectations of $8.82 billion. The operating profit margin increased from 2.5% of the same period last year to 4.1%, and free cash flow turned positive from -$132 million to $215 million.

Comparable store sales grew 2% year-over-year, higher than the company's previous guidance and analysts' expectations of 0.9%, with domestic growth at 1.8% and international market growth at 4.7%. The comparable store sales had declined by 0.7% in the same period last year, and this is the first time it has turned positive in nearly two years, which is also one of the most noteworthy positive changes in this quarter's financial report.

From the demand structure perspective, game consoles, computers, mobile phones, and services are the strongest drivers of domestic sales growth, while appliance sales have declined. It is worth noting that the sales of emerging categories such as collectibles, 3D printers, and AI-enabled smart glasses have doubled year-over-year, indicating that consumers' willingness to purchase innovative technology products remains strong, even as the overall consumer environment continues to focus on cost-effectiveness.

The management reiterated the full-year adjusted earnings per share guidance of $6.30 to $6.60, full-year revenue guidance of $41.2 billion to $42.1 billion, and the full-year comparable store sales are expected to be in the range of a decrease of 1% to an increase of 1%. The second quarter comparable store sales guidance is about a 1% increase—considering the high base effect of new game releases in June last year, this expectation is already considered sturdy. CFO Matt Bilunas revealed that comparable store sales have achieved a high single-digit growth since May.

In terms of personnel, Jason Bonfig, who was promoted from within Best Buy, will officially take over as CEO in November this year and has proposed four strategic priorities: positioning Best Buy as an integrated business platform that combines retail, media advertising, and technology; expanding market coverage; enhancing customer experience; and creating a people-oriented, customer-centered corporate culture.