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Research Alert: Best Buy Delivers Q1 Fy 27 Earnings And Revenue Beat On Strong Comparable Sales

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CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

BBY posted solid Q1 FY 27 (Jan.) results with revenue of $8.936B (+1.9% Y/Y) and comparable sales growth of 2.0% vs. -0.7% decline in the prior year. GAAP EPS of $1.31 beat consensus estimates by $0.08, while adj-EPS of $1.28 rose 11.3%, with operating margin expanding to 4.1% from 2.5%. Best Buy Ads and Marketplace initiatives contributed to gross profit rate expansion, validating the strategic pivot toward higher-margin revenue streams beyond traditional retail. Management maintained FY 27 guidance with adj-EPS of $6.30-$6.60 and revenue of $41.2B-$42.1B, suggesting confidence despite CEO transition from Corie Barry to Jason Bonfig. Capex for 2027 is expected to be $750M. We think the strong cash position of $1.75B (+52.5% Y/Y) provides significant financial flexibility during the leadership transition. BBY plans $300M in share repurchases for FY 27, and we believe the diversification into ads and marketplace businesses positions it well for sustainable margin improvement despite ongoing appliances weakness.

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