Best Buy Reports 1.9% Revenue Growth to $8.936 Billion in Q1 Fiscal 2027

Best Buy Co., Inc. reported a revenue of $8.936 billion for the first quarter of fiscal 2027, marking a 1.9% increase from $8.767 billion in the same period last year. The company's net earnings rose to $276 million, or $1.31 per diluted share, compared to $202 million, or $0.95 per diluted share, in the prior year. This increase in profitability was attributed to a combination of higher operating income and a reduction in restructuring charges, which fell to $9 million from $109 million in the previous year. The gross profit for the quarter was $2.102 billion, representing a slight increase in gross profit margin to 23.5% from 23.4%.

In terms of operational performance, Best Buy's comparable sales increased by 2.0%, driven primarily by growth in gaming, computing, and mobile phones, although this was partially offset by a decline in major appliances. The Domestic segment generated $8.249 billion in revenue, up 1.5% from $8.127 billion, while the International segment saw a more significant increase of 7.3%, reaching $687 million compared to $640 million in the prior year. The company also reported a total of 1,065 stores globally, a decrease from 1,108 stores a year earlier, reflecting ongoing adjustments to its retail footprint.

Best Buy's strategic initiatives included a restructuring program aimed at optimizing its operations and aligning resources with changing customer behaviors. The company has also focused on enhancing its omni-channel customer experience and strengthening vendor partnerships. Notably, the company did not repurchase any shares during the quarter, maintaining $3 billion available under its existing $5 billion share repurchase program approved in February 2022.

The company’s cash and cash equivalents increased to $1.749 billion as of May 2, 2026, compared to $1.147 billion a year earlier, reflecting improved cash flow from operations. Total cash provided by operating activities was $375 million, a significant increase from $34 million in the same quarter last year. Best Buy's management indicated that they expect to continue leveraging their operational strengths and strategic initiatives to drive future growth, although they remain cautious about macroeconomic conditions and their potential impact on consumer spending.

Looking ahead, Best Buy anticipates continued growth in its core product categories, particularly in technology and services, while also navigating challenges such as supply chain disruptions and competitive pressures. The company remains committed to enhancing its digital offerings and expanding its market presence, particularly in the health technology sector, as part of its long-term growth strategy.