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BBY US S&P 500Russell 1000 Earnings call

Best Buy (BBY) · Q2 2026 results and valuation

Share price: $105.16 · 2026-11-11

Results Q2 2026 vs Q1 2026 · previous quarter · fiscal Q2 2027

Net income up 14.1% on the previous quarter, guidance raised. The language turned more upbeat.

Only a basic analysis is available for this company at the moment.

1 · Numbers

+14.1%

Net income vs Q1 2026

Guidance raised

Net income 315.0M vs 276.0M

Revenue +9.4%

Against the same quarter last year (Q2 2025) it is +69.4%, so it is not just seasonal.

2 · How management spoke

More upbeat

Language tone vs last period

Language: upbeat — more upbeat than in Q1 2026.

3 · What stood out

Rising

Adjusted profit rate reached 4.3% on $9.8 billion revenue, with executives highlighting margin expansion.

Valuation

Is Best Buy undervalued?

Reverse DCF. Free cash flow from the last full fiscal year (2026-01-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.

At −3.4% growth a year (3-year revenue growth), the model's fair value is $57.87 a share — the stock trades 82% above it. Today's price assumes 5.4% growth a year.

Current price

$105.16

close of 2026-11-11

Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.

+5.4% for 10 yrs

Fair value / share

$57.87

Buy below

$43.41

Price vs fair value

Overvalued 82%

Price vs buy-below price

Overvalued 142%

Official channels

The company's own website and social media accounts.

Read between the lines

  1. Guidance

    Early-stage new technology is hitting sales targets and is expected to become a growing source of revenue.

    Source quote
    “While it's still in its early stages of adoption, sales performance is progressing as expected, and we anticipate this new technology will become an increasingly meaningful contributor to our revenue...”
  2. Guidance ↑

    Best Buy raised its full-year financial guidance after strong first-half performance.

    Source quote
    “We are pleased with our first half results and our momentum as we enter the second half of the year, and we are raising our annual financial guidance.”
  3. Figure

    Best Buy's Q2 computing sales continued to be supported by the strong performance of its Best Buy business team, which increased...

  4. Last period

    Domestic revenue rose 1.5% to $8.2 billion, with existing-store sales up 1.8% led by gaming, computing, phones and services.

    Source quote
    “From a category standpoint, the largest contributors to the comparable sales growth were gaming, computing, mobile phones and services, which were partially... In our Domestic segment, revenue increased 1.5% to $8.2 billion, driven by comparable sales growth of 1.8%. Our online revenue of $2.6 billion increased 1.4% on a comparable basis...”

Tone

How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.

Overall language Upbeat (was upbeat)

Upbeat — more upbeat than in Q1 2026.

Sentences that drove the tone
“Another way we are expanding our reach is through smaller format stores that allow us to enter attractive markets that cannot support our traditional Best Buy store format, thereby extending...”
“As we look to the future, we are executing a thoughtful and orderly leadership transition designed to ensure a smooth handoff as well as an opportunity to accelerate the business...”
“Major appliances is another category where improved execution around the customer experience is translating into material improved growth trends.”

Full figures

USD · SEC EDGAR XBRL (10-Q, period end 2026-08-01)

Metric Q2 2026period end 2026-08-01 Q1 2026period end 2026-05-02 Change Q2 2025 YoY
Revenue 9.78B 8.94B +9.4% 9.44B +3.6%
Gross profit 2.34B 2.10B +11.2% 2.19B +6.6%
Operating income 421.0M 370.0M +13.8% 251.0M +67.7%
Net income 315.0M 276.0M +14.1% 186.0M +69.4%
EPS 1.48 1.31 +13.0% 0.87 +70.1%
P/E today 14.5 14.4 11.1 +3.3 17.7 −3.3

Topics

Most discussed now

  • New They are experienced and talented leaders guiding a business that is well positioned for continued success.
  • Best Buy's comparable sales grew 4.1% versus last year with positive comps across almost all its major product categories.
  • Greater reach generates customer insights that fuels us as a media and technology company.
  • A better experience delivered through the right footprints and formats drives reach.
  • From a category perspective, Best Buy generated comparable sales growth across most of its categories, with the largest drivers on a...

Faded since Q1 2026

  • Fading The most notable changes were credit card revenue and digital content, which includes digital gaming, software and subscription.
  • Fading Previously, these items were included within Best Buy's various product revenue categories, and now they are fully included within the…
  • Fading Best Buy is delivering on its strategy to strengthen its position in retail as a leading omnichannel destination for technology, while...
  • Fading While this was a difficult decision to make, it is made easier knowing that the Board, through an extensive succession...

Latest announcements

Official filings, newest first.

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