Best Buy
Best Buy's revenue rose 0.4% to $41.7 billion in fiscal 2026. Its operating margin was 3.3%, up from 3.0% a year earlier. Free cash flow was $1.3 billion, down 9.6%. It paid out $1.1 billion in dividends and buybacks, 85% of free cash flow. The diluted share count fell 2.1%.
Operating margin is operating income as a share of revenue. Free cash flow is cash from operations minus capital spending. Return on capital is after-tax operating income as a share of the money invested in the business: debt plus equity, minus cash. Market cap is the last closing share price times the latest diluted share count, so it is approximate. P/E is the last close divided by diluted earnings per share over the last four quarters, or the latest fiscal year where the quarters aren't available; there is none when the company made a loss.
What Best Buy does
Best Buy sells consumer technology and related services in the United States and Canada. Customers can shop online, visit its stores or have its staff come to their homes. It had 1,068 stores at the end of fiscal 2026. Its brands include Best Buy, Geek Squad (installation and repair services), Insignia, and Best Buy Health.
Best Buy reports two segments, Domestic (the U.S.) and International (Canada). Its sales fall into six categories: computing and mobile phones; consumer electronics; appliances; entertainment, such as gaming, drones and toys; services, such as delivery, installation, repair, memberships, warranty and marketplace commissions; and other items. Most merchandise is shipped from manufacturers to its distribution centers. Online customers can have items delivered or pick them up at a store.
It buys from a small group of suppliers. In fiscal 2026 its 20 largest suppliers made up approximately 80% of the merchandise it purchased, and five of them, Apple, Samsung, HP, LG and Sony, made up approximately 55%. It generally has no long-term written contracts with vendors. Best Buy says it faces strong competition from online and store-based retailers, and from some of its own vendors and mobile carriers.
Its biggest risks, as it describes them
- Weaker consumer spending, which could hurt its sales and financial results.
- Tariffs and other trade and geopolitical pressures that raise the cost of its products or disrupt supply.
- Products that quickly become outdated, and changing consumer tastes.
- Strong competition from online and store-based retailers, and from vendors and carriers selling directly.
- Reliance on a few key vendors and mobile carriers, and higher memory-component costs and shortages.
Charts show fiscal years, from the 10-K filings.
Revenue and margins
Net income and earnings per share
From fiscal 2017 to 2026, earnings per share grew 3.2% a year and net income fell 1.5% a year, as buybacks cut the share count by 34%.
Returns on capital
Cash flow
Payouts and share count
Valuation
Two ways to value Best Buy yourself, both starting from its filings: a discounted cash flow model and the price-to-earnings method.
What Best Buy says to expect
- Third quarter fiscal 2027: comparable sales and margin
The company expects Q3 FY27 comparable sales to be in the range of 1.0% to 3.0% and adjusted operating income rate to be in the range of 4.1% to 4.2%.
- Fiscal 2027: share repurchases
The company expects to spend approximately $300 million on share repurchases during FY27.
Discounted cash flow (DCF)
A discounted cash flow (DCF) model values a business as the cash it may generate in future, discounted back to today. The starting figures come from Best Buy's 10-K (or, for net cash and shares, its latest 10-Q) and the assumptions are yours: start from one of three example scenarios, then change any figure to see what it implies for a share, and how that compares with the last share price.
Value per share on three example scenarios, from Best Buy's fiscal 2026 free cash flow of $1.3B, net cash of $562M at January 31, 2026 and 212 million diluted shares, from its filings. The scenarios are fitted to Best Buy: the base scenario's growth in years 1 to 5 is its revenue growth over the last 3 years, -3.4% a year, kept between 0% and 20%; the cautious and optimistic ones are lower and higher, and growth in years 6 to 10 is halfway to the long-run rate. The base scenario's discount rate is 10%: 9% for a business of moderate risk (Computer & Electronics Retail), plus 1 point for unsteady results (revenue fell in two of the last five years); the cautious and optimistic ones use a point more and a point less. Select one to load it into the calculator. These are the model's arithmetic on those assumptions, not a forecast or a price target.
- Last close, October 26, 2026
- $97.95
- Value on these assumptions, against the last close
- —
- Cash flows in years 1 to 10, valued today
- —
- Everything after year 10, valued today
- —
- Plus net cash
- —
- Share of value from after year 10
How the value changes with two assumptions
Price-to-earnings (P/E) method
Another common way to value a company is to multiply its earnings per share by a price-to-earnings (P/E) multiple: the number of years of today's earnings an investor pays for a share. A higher multiple usually means investors expect earnings to grow. Choose a multiple, for example from similar companies, to see the value it gives.
Value per share on three example scenarios, from Best Buy's earnings per share of $6.01 (over the last four quarters). Each grows earnings for a year at the cash flow scenarios' rates and applies a multiple to next year's earnings: 16.3×, the middle of Best Buy's own P/E today, its peers' median and its sector's median (Best Buy's own P/E today) for the base scenario, 20% less and more for the cautious and optimistic ones. The price is brought back a year at 11%, 10% and 9%. Select one to load it into the calculator. These are the model's arithmetic on those assumptions, not a forecast or a price target.
- Last close, October 26, 2026
- $97.95
- Value at this multiple, against the last close
- —
- Best Buy's P/E at the last close
- 16.3×
| Company | Last close | Earnings per share | P/E today |
|---|---|---|---|
| Best BuyBBY | $97.95 | $6.01 | 16.3× |
| GameStopGME | $23.90 | $1.52 | 15.7× |
| Upbound GroupUPBD | $16.99 | $1.54 | 11.0× |
| Lithia MotorsLAD | $286.84 | $30.33 | 9.5× |
Balance sheet
| Fiscal year end | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Cash and short-term investments | 2.9 | 1.9 | 1.4 | 1.6 | 1.7 |
| Debt incl. finance leases | 1.3 | 1.2 | 1.2 | 1.2 | 1.2 |
| Net debt (negative means net cash) | −1.7 | −0.7 | −0.2 | −0.4 | −0.6 |
| Net debt to EBITDA | −0.4x | −0.2x | −0.1x | −0.2x | −0.2x |
| Debt to equity | 0.4x | 0.4x | 0.4x | 0.4x | 0.4x |
| Interest coverage | 121.6x | 51.3x | 30.3x | 24.8x | 29.6x |
| Current ratio | 1.0x | 1.0x | 1.0x | 1.0x | 1.1x |
| Quick ratio | 0.4x | 0.4x | 0.4x | 0.4x | 0.4x |
Insider trades
Over the 12 months between October 27, 2025 and October 26, 2026, no insider bought Best Buy shares on the open market, and 7 insiders sold $222.9 million, $102.2 million of it under trading plans set up in advance.
| Date | Insider | Trade | Shares | Price | Value | Filing |
|---|---|---|---|---|---|---|
| Sep 23, 2026 | Kathleen ScarlettSevp, CHRO | Sold | 116,062 | $92.15 | $10.7 million | Form 4 |
| Sep 16, 2026 | Richard M SchulzeChairman Emeritus | Sold | 300,000 | $92.51 | $27.8 million | Form 4 |
| Jul 14, 2026 | Richard M SchulzeChairman Emeritus | Sold plan | 300,000 | $82.21 | $24.7 million | Form 4 |
| Jul 13, 2026 | Richard M SchulzeChairman Emeritus | Sold plan | 600,000 | $82.22 | $49.3 million | Form 4 |
| Jun 26, 2026 | Richard M SchulzeChairman Emeritus | Sold | 224,705 | $78.10 | $17.5 million | Form 4 |
| Jun 25, 2026 | Richard M SchulzeChairman Emeritus | Sold | 193,896 | $78.13 | $15.1 million | Form 4 |
| Jun 16, 2026 | Richard M SchulzeChairman Emeritus | Sold | 5,100 | $78.00 | $397,800 | Form 4 |
| Jun 15, 2026 | Richard M SchulzeChairman Emeritus | Sold | 76,299 | $78.23 | $6.0 million | Form 4 |
| May 29, 2026 | Richard M SchulzeChairman Emeritus | Sold | 500,350 | $76.12 | $38.1 million | Form 4 |
| May 29, 2026 | Mathew WatsonSVP, Controller & CAO | Sold | 1,784 | $73.80 | $131,659 | Form 4 |
| Mar 23, 2026 | Corie S BarryCEO, Director | Sold | 42,869 | $64.02 | $2.7 million | Form 4 |
| Mar 23, 2026 | Matthew M BilunasSEVP Enterprise Strategy & CFO | Sold | 11,356 | $64.02 | $727,011 | Form 4 |
Piotroski F-score
The F-score counts how many of nine simple tests of profitability, funding and efficiency a company passed in a year (Piotroski, 2000). The more tests passed, the stronger the year: 8 or 9 is strong, 0 to 2 weak. Companies that report no gross profit are scored on the other eight.
| Test | FY24 | FY25 | FY26 |
|---|---|---|---|
| Net income is positive | Pass | Pass | Pass |
| Cash from operations is positive | Pass | Pass | Pass |
| Return on assets rose | Fail | Fail | Pass |
| Cash from operations exceeds net income | Pass | Pass | Pass |
| Debt fell relative to assets | Fail | Fail | Fail |
| Current ratio rose | Pass | Pass | Pass |
| Share count didn't rise | Pass | Pass | Pass |
| Gross margin rose | Pass | Pass | Fail |
| Revenue rose relative to assets | Pass | Pass | Pass |
| F-score | 7 of 9 | 7 of 9 | 7 of 9 |
| Accruals ratio | −1.5% | −7.9% | −6.1% |
Compare
Put Best Buy side by side with any other company we cover: revenue, growth, margins, cash flow and returns, with ten years of charts.
Similar companies
| Company | Year | Revenue growth | Operating margin | Free cash flow margin | Return on capital | Net debt to EBITDA | F-score | Compare |
|---|---|---|---|---|---|---|---|---|
| Best Buy | FY26 | 0.4% | 3.3% | 3.0% | 43.9% | −0.2x | 7 | |
| Upbound Group | FY25 | 8.7% | 4.8% | 5.1% | — | — | — | Compare |
| GameStop | FY25 | −5.0% | 6.4% | 16.4% | — | −19.3x | 6 | Compare |
| Magna International | FY25 | −1.9% | — | 5.4% | 6.7% | 0.9x | 8 | Compare |
| Lithia Motors | FY25 | 4.0% | 4.2% | 0.0% | 7.8% | 4.9x | 3 | Compare |
10 years of figures
| Fiscal year | FY17 | FY18 | FY19 | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|---|---|---|---|---|
| Income statement | ||||||||||
| Revenue | 39.4 | 42.2 | 42.9 | 43.6 | 47.3 | 51.8 | 46.3 | 43.5 | 41.5 | 41.7 |
| Revenue growth | −0.3% | 7.0% | 1.7% | 1.8% | 8.3% | 9.5% | −10.6% | −6.2% | −4.4% | 0.4% |
| Gross profit | 9.4 | 9.9 | 10.0 | 10.0 | 10.6 | 11.6 | 9.9 | 9.6 | 9.4 | 9.4 |
| Research and development | — | — | — | — | — | — | — | — | — | — |
| Operating income | 1.9 | 1.8 | 1.9 | 2.0 | 2.4 | 3.0 | 1.8 | 1.6 | 1.3 | 1.4 |
| Net income | 1.2 | 1.0 | 1.5 | 1.5 | 1.8 | 2.5 | 1.4 | 1.2 | 0.9 | 1.1 |
| Diluted EPS (US$) | 3.81 | 3.26 | 5.20 | 5.75 | 6.84 | 9.84 | 6.29 | 5.68 | 4.28 | 5.04 |
| Diluted shares (millions) | 323 | 307 | 281 | 268 | 263 | 249 | 226 | 218 | 217 | 212 |
| Cash flow | ||||||||||
| Cash from operations | 2.6 | 2.1 | 2.4 | 2.6 | 4.9 | 3.3 | 1.8 | 1.5 | 2.1 | 2.0 |
| Capital expenditure | 0.6 | 0.7 | 0.8 | 0.7 | 0.7 | 0.7 | 0.9 | 0.8 | 0.7 | 0.7 |
| Free cash flow | 2.0 | 1.5 | 1.6 | 1.8 | 4.2 | 2.5 | 0.9 | 0.7 | 1.4 | 1.3 |
| Dividends paid | 0.5 | 0.4 | 0.5 | 0.5 | 0.6 | 0.7 | 0.8 | 0.8 | 0.8 | 0.8 |
| Share buybacks | 0.7 | 2.0 | 1.5 | 1.0 | 0.3 | 3.5 | 1.0 | 0.3 | 0.5 | 0.3 |
| Acquisitions | 0.0 | 0.0 | 0.8 | 0.1 | 0.0 | 0.5 | 0.0 | 0.0 | 0.0 | 0.0 |
| Stock-based compensation | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 |
| Balance sheet at fiscal year end | ||||||||||
| Cash and short-term investments | 3.9 | 3.1 | 2.0 | 2.2 | 5.5 | 2.9 | 1.9 | 1.4 | 1.6 | 1.7 |
| Debt incl. finance leases | 1.2 | 1.4 | 1.4 | 1.3 | 1.4 | 1.3 | 1.2 | 1.2 | 1.2 | 1.2 |
| Total assets | 13.9 | 13.0 | 12.9 | 15.6 | 19.1 | 17.5 | 15.8 | 15.0 | 14.8 | 14.7 |
| Total liabilities | 9.1 | 9.4 | 9.6 | 12.1 | 14.5 | 14.5 | 13.0 | 11.9 | 12.0 | 11.7 |
| Shareholders' equity | 4.7 | 3.6 | 3.3 | 3.5 | 4.6 | 3.0 | 2.8 | 3.1 | 2.8 | 3.0 |
| Margins and ratios | ||||||||||
| Gross margin | 24.0% | 23.4% | 23.2% | 23.0% | 22.4% | 22.5% | 21.4% | 22.1% | 22.6% | 22.5% |
| Operating margin | 4.7% | 4.4% | 4.4% | 4.6% | 5.1% | 5.9% | 3.9% | 3.6% | 3.0% | 3.3% |
| Net margin | 3.1% | 2.4% | 3.4% | 3.5% | 3.8% | 4.7% | 3.1% | 2.9% | 2.2% | 2.6% |
| Free cash flow margin | 5.0% | 3.5% | 3.7% | 4.2% | 8.9% | 4.9% | 1.9% | 1.6% | 3.4% | 3.0% |
| Return on capital | 53.9% | 53.5% | 64.8% | 58.9% | — | — | 81.5% | 48.7% | 34.5% | 43.9% |
| Return on equity | 27.0% | 24.0% | 42.3% | 45.4% | 44.6% | 64.5% | 48.8% | 42.4% | 31.6% | 37.0% |
| Return on assets | 9.0% | 7.4% | 11.3% | 10.8% | 10.4% | 13.4% | 8.5% | 8.1% | 6.2% | 7.3% |
| Net debt to EBITDA | −1.1x | −0.7x | −0.2x | −0.3x | −1.3x | −0.4x | −0.2x | −0.1x | −0.2x | −0.2x |