Best Buy reported second-quarter results for fiscal 2027, covering the period through August 1, 2026, on August 27. Enterprise revenue reached $9.779 billion, up 3.6% year-over-year and surpassing the $9.59 billion FactSet consensus estimate. Domestic revenue came in at $9.07 billion, while international operations contributed $709 million.
Enterprise comparable sales climbed 4.1%, well ahead of both the company's prior outlook of roughly 1% and analyst expectations of about 1.3%. In the U.S., comparable sales rose 4.5%, with online channels up 5.1%, while international comparable sales declined 1.8%. Diluted earnings per share landed at $1.48, compared to $0.87 in the prior-year period. On an adjusted basis, diluted EPS was $1.47 versus $1.28 a year ago, beating the FactSet estimate of approximately $1.39. Net income totaled $315 million, up from $186 million in the same quarter last year.
Operating margin expanded to 4.3% from 2.7% a year earlier, while adjusted operating margin improved to 4.3% from 3.9%. Looking ahead, Best Buy raised its full-year fiscal 2027 revenue guidance to $42.3 billion-$42.8 billion, up from the prior range of $41.2 billion-$42.1 billion. Comparable sales guidance was lifted to a range of +1.9% to +3.0%, versus the previous outlook of -1.0% to +1.0%. Adjusted diluted EPS guidance now stands at $6.70-$6.90, compared to the earlier $6.30-$6.60 range.
For the current quarter, the company expects comparable sales growth of 1% to 3%, surpassing analyst projections of roughly 0.1%. Best Buy, headquartered in Minneapolis, operates large-format stores specializing in consumer electronics, appliances, computers, and home theater systems, along with installation and membership services. As one of the largest consumer electronics chains in the U.S., it also runs international locations, including stores in Canada. The company sits between online retailers like Amazon and direct-store competitors such as Apple and Samsung, leaving revenue heavily dependent on upgrade cycles, new product launches, and holiday promotions. This quarter, computers and home theater were the primary growth drivers.
Nearly all major product categories posted comparable sales gains, led by computers and home theater. Newer product lines, including AI-powered glasses and trading cards, more than doubled in sales year-over-year. Management attributed the results to recent investments in store-level expert sales staffing, vendor partnerships for new product introductions, fulfillment speed, and supply chain improvements. Jason Bonfig, the current chief customer, product, and fulfillment officer, noted that the quarter's performance reflected both proactive adjustments and category demand conditions. Bonfig is set to succeed current CEO Corie Barry in November, following the appointment of former Nordstrom executive Anne Bramman as chief financial officer this month. Bonfig has outlined plans for smaller-format store concepts, expanded product assortments, and a stronger push into advertising services.
The raised guidance is built on faster-than-expected first-half momentum, though third-quarter comparable sales guidance remains below the 4.1% achieved in the current quarter. International results pulled back this period, new product categories still represent a small base, and whether upgrade demand persists through the holiday season will determine where full-year results land within the revised range.
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