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Best Buy Beats Q2 Estimates and Raises Full-Year Guide as AI Spurs Computing Upgrades

Raised guidance reflects computing strength from AI-driven hardware upgrades prior to a CEO change on Nov. 1.

Overview

  • Best Buy reported stronger-than-expected fiscal second-quarter results Thursday, with adjusted EPS of $1.47, revenue near $9.78–$9.8 billion, and comparable-store sales up 4.1%.
  • Management raised full-year revenue guidance to $42.3 billion–$42.8 billion and adjusted EPS to $6.70–$6.90 after improving operating margin to about 4.3%.
  • Executives credited an AI-fueled replacement cycle for much of the computing strength and said higher-margin initiatives—Marketplace GMV growth, Best Buy Ads and AI shopping tools—are being scaled to lift profits.
  • The quarter’s gross profit benefited from a disclosed $34 million tariff-refund, while international sales fell about 4.2% and appliances faced pressure from a weak housing market.
  • Shares slipped modestly after the report following a roughly 31% year-to-date gain and cautious analyst sentiment, and incoming CEO Jason Bonfig is set to take the post on Nov. 1.