What changed in this filing

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Item 1. Financial Statements

2026-06-05 compared with 2025-12-05 · 94 added, 229 removed, 307 unchanged (51% of the section changed)

2 unchanged sentences

$ in millions, except per share amounts (unaudited)

November 1, 2025 February 1, 2025 November 2, 2024

May 2, 2026 January 31, 2026 May 3, 2025

Current assets

36 unchanged sentences

Total liabilities and equity $ 14,890 $ 14,670 $ 14,128

The Consolidated Balance Sheet as of February 1, 2025, has been condensed from the audited consolidated financial statements.

The Consolidated Balance Sheet as of January 31, 2026, has been condensed from the audited consolidated financial statements.

See Notes to Condensed Consolidated Financial Statements.

1 unchanged sentence

$ and shares in millions, except per share amounts (unaudited)

Three Months Ended Nine Months Ended

November 1, 2025 November 2, 2024 November 1, 2025 November 2, 2024

Three Months Ended

May 2, 2026 May 3, 2025

Revenue $ 8,936 $ 8,767

3 unchanged sentences

Restructuring charges ( 9 ) 109

Goodwill and intangible asset impairments 171 - 171 -

Operating income 370 219

Other income (expense):

Loss on disposal of subsidiaries - - ( 4 ) -

Investment income and other 19 15

Interest expense ( 11 ) ( 12 )

Earnings before income tax expense and equity in income (loss) of affiliates 205 356 680 1,072

Earnings before income tax expense and equity in loss of affiliates 378 222

Income tax expense 102 19

Equity in income (loss) of affiliates ( 1 ) 2 ( 1 ) 4

Equity in loss of affiliates - ( 1 )

Net earnings $ 276 $ 202

7 unchanged sentences

$ in millions (unaudited)

Three Months Ended Nine Months Ended

November 1, 2025 November 2, 2024 November 1, 2025 November 2, 2024

Three Months Ended

May 2, 2026 May 3, 2025

Net earnings $ 276 $ 202

4 unchanged sentences

$ in millions (unaudited)

Nine Months Ended

November 1, 2025 November 2, 2024

Three Months Ended

May 2, 2026 May 3, 2025

Operating activities

3 unchanged sentences

Restructuring charges ( 9 ) 109

Goodwill and intangible asset impairments 171 -

Stock-based compensation 40 40

Deferred income taxes 10 ( 51 )

Loss on disposal of subsidiaries 4 -

Long-lived asset impairments 21 2

Other, net 1 ( 2 )

9 unchanged sentences

Additions to property and equipment ( 160 ) ( 166 )

Disposal of subsidiary ( 27 ) -

Other, net 1 6

Total cash used in investing activities ( 160 ) ( 166 )

2 unchanged sentences

Dividends paid ( 202 ) ( 202 )

Repayments of debt ( 10 ) ( 13 )

Other, net - ( 3 )

1 unchanged sentence

Effect of exchange rate changes on cash and cash equivalents - 4

Decrease in cash, cash equivalents and restricted cash ( 674 ) ( 855 )

Increase (decrease) in cash, cash equivalents and restricted cash 13 ( 433 )

Cash, cash equivalents and restricted cash at beginning of period 2,023 1,868

4 unchanged sentences

Common Shares Common Stock Additional Paid-In Capital Retained Earnings Accumulated Other Comprehensive

Income (Loss) Total

Balances at August 2, 2025 210.4 $ 22 $ - $ 2,381 $ 313 $ 2,716

Net earnings, three months ended November 1, 2025 - - - 140 - 140

Other comprehensive loss:

Foreign currency translation adjustments, net of tax - - - - ( 4 ) ( 4 )

Stock-based compensation - - 31 - - 31

Issuance of common stock 0.1 - 3 - - 3

Common stock dividends, $ 0.95 per share

- - 4 ( 203 ) - ( 199 )

Repurchase of common stock ( 0.5 ) - ( 22 ) ( 12 ) - ( 34 )

Balances at November 1, 2025 210.0 $ 22 $ 16 $ 2,306 $ 309 $ 2,653

Balances at February 1, 2025 211.4 $ 22 $ - $ 2,486 $ 300 $ 2,808

Net earnings, nine months ended November 1, 2025 - - - 528 - 528

Balances at January 31, 2026 209.1 $ 22 $ 14 $ 2,610 $ 318 $ 2,964

Net earnings, three months ended May 2, 2026 - - - 276 - 276

Other comprehensive income:

4 unchanged sentences

- - 7 ( 209 ) - ( 202 )

Repurchase of common stock ( 3.0 ) - ( 109 ) ( 92 ) - ( 201 )

Balances at November 1, 2025 210.0 $ 22 $ 16 $ 2,306 $ 309 $ 2,653

Balances at August 3, 2024 215.0 $ 22 $ - $ 2,775 $ 310 $ 3,107

Net earnings, three months ended November 2, 2024 - - - 273 - 273

Other comprehensive loss:

Foreign currency translation adjustments, net of tax - - - - ( 1 ) ( 1 )

Stock-based compensation - - 34 - - 34

Issuance of common stock 0.2 - 6 - - 6

Common stock dividends, $ 0.94 per share

- - 4 ( 206 ) - ( 202 )

Repurchase of common stock ( 1.4 ) - ( 44 ) ( 91 ) - ( 135 )

Balances at November 2, 2024 213.8 $ 22 $ - $ 2,751 $ 309 $ 3,082

Balances at May 2, 2026 210.7 $ 22 $ 65 $ 2,677 $ 319 $ 3,083

Balances at February 1, 2025 211.4 $ 22 $ - $ 2,486 $ 300 $ 2,808

Net earnings, nine months ended November 2, 2024 - - - 810 - 810

Other comprehensive loss:

Net earnings, three months ended May 3, 2025 - - - 202 - 202

Other comprehensive income:

Foreign currency translation adjustments, net of tax - - - - 13 13

4 unchanged sentences

Repurchase of common stock ( 1.6 ) - ( 48 ) ( 52 ) - ( 100 )

Balances at November 2, 2024 213.8 $ 22 $ - $ 2,751 $ 309 $ 3,082

Balances at May 3, 2025 211.3 $ 22 $ - $ 2,428 $ 313 $ 2,763

See Notes to Condensed Consolidated Financial Statements.

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Due to the seasonal nature of our business, interim results are not necessarily indicative of results for the entire fiscal year.

The interim financial statements and the related notes included in this Quarterly Report on Form 10-Q should be read in conjunction with the consolidated financial statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended February 1, 2025.

The first nine months of fiscal 2026 and fiscal 2025 each included 39 weeks.

In preparing the accompanying condensed consolidated financial statements, we evaluated the period from November 1, 2025, through the date the financial statements were issued for material subsequent events requiring recognition or disclosure.

The first three months of fiscal 2027 and fiscal 2026 each included 13 weeks.

Unless otherwise noted, references to years in these notes to condensed consolidated financial statements relate to fiscal years, not calendar years.

In preparing the accompanying condensed consolidated financial statements, we evaluated the period from May 2, 2026, through the date the financial statements were issued for material subsequent events requiring recognition or disclosure.

No such events were identified.

Recently Issued Accounting Pronouncements

In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-09, Income Taxes (Topic 740):

Improvements to Income Tax Disclosures , which requires disclosure of specific categories meeting a quantitative threshold within the income tax rate reconciliation, as well as disaggregation of income taxes paid by jurisdiction.

This ASU, which can be applied either prospectively or retrospectively, is effective for annual periods beginning after December 15, 2024, with early adoption permitted.

We are currently evaluating the impact of the ASU and expect to include updated income tax disclosures in our fiscal 2026 Form 10-K.

In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40):

Unadopted Accounting Pronouncements

In November 2024, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40):

Disaggregation of Income Statement Expenses , which requires disclosure of specific expense categories in the notes to financial statements.

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We are currently evaluating the impact of the ASU and expect to include updated expense disclosures in our fiscal 2028 Form 10-K.

Recently Enacted Tax Legislation

On July 4, 2025, President Trump signed into law the One Big Beautiful Bill Act (“OB3”).

The OB3 extends key provisions of the 2017 Tax Cuts and Jobs Act, including, but not limited to, domestic research expensing, 100% bonus depreciation on tangible property and modifications to the international tax framework.

The provisions do not have a material impact on our income tax expense.

Supply Chain Financing

We have a supply chain financing program with an independent financial institution, whereby some of our suppliers have the opportunity to receive accounts payable settlements early, at a discount, facilitated by the financial institution.

Our liability associated with the funded participation in the program, which is primarily included in Accounts payable on our Condensed Consolidated Balance Sheets, was $ 1,091 million, $ 398 million and $ 793 million as of November 1, 2025, February 1, 2025, and November 2, 2024, respectively.

Our liability associated with the funded participation in the program, which is primarily included in Accounts payable on our Condensed Consolidated Balance Sheets, was $ 861 million, $ 600 million and $ 569 million as of May 2, 2026, January 31, 2026, and May 3, 2025, respectively.

Total Cash, Cash Equivalents and Restricted Cash

Cash, cash equivalents and restricted cash reported on our Condensed Consolidated Balance Sheets are reconciled to the totals shown on our Condensed Consolidated Statements of Cash Flows as follows ($ in millions):

November 1, 2025 February 1, 2025 November 2, 2024

May 2, 2026 January 31, 2026 May 3, 2025

Cash and cash equivalents $ 1,749 $ 1,738 $ 1,147

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Amounts included in restricted cash are primarily restricted to cover product protection plans provided under our membership offerings and self-insurance liabilities.

Reclassification

Certain reclassifications of immaterial amounts previously reported have been made to the accompanying Condensed Consolidated Statements of Cash Flows to maintain consistency and comparability between periods presented.

Restructuring

Restructuring charges were as follows ($ in millions):

Three Months Ended Nine Months Ended

November 1, 2025 November 2, 2024 November 1, 2025 November 2, 2024

Three Months Ended

May 2, 2026 May 3, 2025

Fiscal 2026 Labor and Store Optimization Initiative $ ( 8 ) $ -

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Fiscal 2024 Restructuring Initiative - ( 2 )

Fiscal 2023 Resource Optimization Initiative — — — ( 2 )

Total $ ( 9 ) $ 109

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The composition of restructuring charges incurred related to this initiative were as follows ($ in millions):

Three Months Ended Nine Months Ended

November 1, 2025 November 1, 2025

Domestic International Total Domestic International Total

Three Months Ended May 2, 2026 Cumulative Amount as of May 2, 2026

Domestic Domestic International Total

Termination benefits $ ( 7 ) $ 61 $ 3 $ 64

Asset impairments (1)

Asset impairments and other costs (1)

( 1 ) 45 - 45

Total $ ( 8 ) $ 106 $ 3 $ 109

(1) Represents asset impairments primarily related to planned store closures, including an impairment related to an indefinite-lived tradename.

See Note 3, Goodwill and Intangible Assets , for additional information.

The remaining carrying value of net assets approximates fair value and was immaterial as of November 1, 2025.

(1) Cumulative amount as of May 2, 2026 primarily represents asset impairments related to planned store closures, an impairment related to an indefinite-lived tradename and other exit costs.

The remaining carrying value of net assets approximates fair value and was immaterial as of May 2, 2026.

Restructuring accrual activity related to this initiative was as follows ($ in millions):

1 unchanged sentence

Domestic International Total

Balances at February 1, 2025 $ - $ - $ -

Charges 78 3 81

Balances at January 31, 2026 $ 42 $ 3 $ 45

Cash payments ( 8 ) ( 1 ) ( 9 )

1 unchanged sentence

( 7 ) - ( 7 )

Balances at November 1, 2025 $ 60 $ 3 $ 63

Balances at May 2, 2026 $ 27 $ 2 $ 29

(1) Represents adjustments primarily related to higher-than-expected employee retention from previously planned organizational changes.

Our restructuring accrual liabilities related to termination benefits of $ 63 million as of November 1, 2025, reflect expected future cash payments primarily during fiscal 2027.

Our restructuring accrual liabilities primarily related to termination benefits of $ 29 million as of May 2, 2026, reflect expected future cash payments primarily during fiscal 2027 and fiscal 2028.

Best Buy Health Optimization and China Sourcing Initiative

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In addition, we also made significant changes to reduce our exposure to tariffs, particularly in China.

We currently do not expect to incur material future restructuring charges related to this initiative.

All charges incurred related to this initiative were from continuing operations in our Domestic segment and presented within Restructuring charges on our Condensed Consolidated Statements of Earnings.

The composition of restructuring charges incurred related to this initiative were as follows ($ in millions):

Three Months Ended Nine Months Ended

November 1, 2025 November 1, 2025

Asset impairments and other costs (1)

Termination benefits ( 3 ) 32

Total $ ( 3 ) $ 102

(1) Primarily represents the full impairment of net assets related to a component of our Best Buy Health business and other exit costs.

The remaining carrying value of net assets approximates fair value and was immaterial as of November 1, 2025.

Restructuring accrual activity related to this initiative was as follows ($ in millions):

Termination Benefits Asset Impairments and Other Costs Total

Balances at February 1, 2025 $ — $ — $ —

Charges 38 28 66

Cash payments ( 17 ) ( 27 ) ( 44 )

Adjustments (1)

( 6 ) ( 1 ) ( 7 )

Balances at November 1, 2025 $ 15 $ — $ 15

(1) Primarily represents adjustments for termination benefits primarily related to higher-than-expected employee retention from previously planned organizational changes.

Our restructuring accrual liabilities related to termination benefits of $ 15 million as of November 1, 2025, reflect expected future cash payments primarily during fiscal 2026.

We currently do not expect to incur material future restructuring charges related to this initiative and no material liability remains as of May 2, 2026.

Fiscal 2024 Restructuring Initiative

During the fourth quarter of fiscal 2024, we commenced an enterprise-wide restructuring initiative intended to align field labor resources with where customers want to shop and to optimize the customer experience, redirect corporate resources for better alignment with our strategy and right-size resources to better align with our revenue outlook for fiscal 2025.

We do not expect to incur material future restructuring charges related to this initiative.

All charges incurred related to this initiative were comprised of employee termination benefits from continuing operations and were presented within Restructuring charges on our Condensed Consolidated Statements of Earnings as follows ($ in millions):

Three Months Ended Nine Months Ended Cumulative Amount as of

November 1, 2025 November 2, 2024 November 1, 2025 November 2, 2024 November 1, 2025

Domestic $ ( 1 ) $ ( 4 ) $ ( 5 ) $ 6 $ 161

International - - - - 8

Total $ ( 1 ) $ ( 4 ) $ ( 5 ) $ 6 $ 169

Restructuring accrual activity related to this initiative was as follows ($ in millions):

There were no expenses incurred related to this initiative in the first quarter of fiscal 2027, and we do not expect to incur material future restructuring charges related to this initiative.

The only remaining restructuring accrual related to this initiative relates to our Domestic segment and was as follows ($ in millions):

Termination Benefits

Domestic International Total

Balances at February 1, 2025 $ 80 $ 5 $ 85

Balance at January 31, 2026 $ 31

Cash payments ( 1 )

Adjustments (1)

( 5 ) - ( 5 )

Balances at November 1, 2025 $ 54 $ 2 $ 56

(1) Represents adjustments primarily related to higher-than-expected employee retention from previously planned organizational changes.

Our restructuring accrual liabilities related to termination benefits of $ 56 million as of November 1, 2025, reflect expected future cash payments primarily during fiscal 2027.

Goodwill and Intangible Assets

Balance at May 2, 2026 $ 30

Our restructuring accrual liability related to termination benefits of $ 30 million as of May 2, 2026, reflects expected future cash payments primarily during fiscal 2028.

Goodwill balances by segment were as follows ($ in millions):

November 1, 2025 February 1, 2025 November 2, 2024

Gross Carrying Amount Cumulative Impairment Gross Carrying Amount Cumulative Impairment Gross Carrying Amount Cumulative Impairment

May 2, 2026 January 31, 2026 May 3, 2025

Gross Carrying Amount Cumulative Impairment Gross Carrying Amount Cumulative Impairment (1)

Gross Carrying Amount Cumulative Impairment

Domestic $ 1,450 $ ( 660 ) $ 1,450 $ ( 660 ) $ 1,450 $ ( 542 )

2 unchanged sentences

(1) In the third quarter of fiscal 2026, we recorded a goodwill impairment of $ 118 million within the Domestic segment for the Best Buy Health reporting unit.

The carrying value of the Best Buy Health reporting unit as of November 1, 2025, was $ 298 million.

A change in Best Buy Health’s customer base during the quarter resulted in an impairment review of all Best Buy Health assets.

The fair value of Best Buy Health was estimated primarily based on discounted cash flow analysis.

The impairment reflects downward revisions of our revenue growth rates and margin rates compared to previous projections, in part due to pressures in the Medicaid and Medicare Advantage markets.

In addition, definite-lived intangible asset impairments and long-lived asset impairments were also recorded.

Refer to Note 4, Fair Value Measurements , for additional information.

Indefinite-Lived Intangible Assets

In the second quarter of fiscal 2026, we recorded a full impairment of $ 16 million related to our only remaining indefinite-lived intangible asset as a result of restructuring activity that commenced in the second quarter of fiscal 2026.

Refer to Note 2, Restructuring , for additional information.

Definite-Lived Intangible Assets

We have definite-lived intangible assets recorded within Other assets on our Condensed Consolidated Balance Sheets as follows ($ in millions):

November 1, 2025 February 1, 2025 November 2, 2024 Weighted-Average Useful Life Remaining

as of November 1, 2025

Gross Carrying

Amortization (1)

Gross Carrying

Amount Accumulated

Amortization Gross Carrying

Amount Accumulated

Customer relationships (2)

$ 339 $ 339 $ 360 $ 285 $ 360 $ 283 -

Tradenames 87 80 92 79 92 77 0.9

Developed technology 56 56 64 61 64 60 -

Total $ 482 $ 475 $ 516 $ 425 $ 516 $ 420 0.9

(1) Gross carrying amount and accumulated amortization as of November 1, 2025, excludes $ 34 million and $ 16 million, respectively, of definite-lived intangible assets related to the exit of a component of our Best Buy Health business in the second quarter of fiscal 2026.

See Note 2, Restructuring , for additional information.

(2) Accumulated amortization as of November 1, 2025, includes $ 53 million of impairments related to Best Buy Health included in Goodwill and intangible asset impairments on our Condensed Consolidated Statements of Earnings.

Amortization expense, included in Selling, general and administrative expenses ("SG&A") on our Condensed Consolidated Statements of Earnings, was as follows ($ in millions):

Three Months Ended Nine Months Ended

November 1, 2025 November 2, 2024 November 1, 2025 November 2, 2024

Amortization expense $ 3 $ 5 $ 12 $ 16

Amortization expense expected to be recognized in future periods is as follows ($ in millions):

Amortization Expense

Remainder of fiscal 2026 $ 2

Fiscal 2027 5

Fair Value Measurements

Fair value measurements are reported in one of three levels based on the lowest level of significant input used:

Level 1 (unadjusted quoted prices in active markets);

Level 2 (observable market inputs, other than quoted prices included in Level 1);

and Level 3 (unobservable inputs that cannot be corroborated by observable market data).

Recurring Fair Value Measurements

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Balance Sheet Location (1)

Fair Value Hierarchy November 1, 2025 February 1, 2025 November 2, 2024

Fair Value Hierarchy May 2, 2026 January 31, 2026 May 3, 2025

Money market funds (2)

2 unchanged sentences

Cash and cash equivalents Level 2 200 252 232

Commercial paper (2)

Cash and cash equivalents Level 2 - 37 -

Money market funds (2)

14 unchanged sentences

Nonrecurring Fair Value Measurements

In the first six months of fiscal 2026, we recorded asset impairments and other costs as a result of restructuring initiatives that commenced in the first and second quarters of fiscal 2026.

In the first quarter of fiscal 2026, we recorded asset impairments and other costs related to our Best Buy Health Optimization and China Sourcing Initiative.

These nonrecurring fair value remeasurements were based on significant unobservable inputs (Level 3).

Refer to Note 2, Restructuring , for additional information.

In the third quarter of fiscal 2026, we recorded goodwill and definite-lived intangible asset impairments related to Best Buy Health.

Refer to Note 3, Goodwill and Intangible Assets , for additional information.

In addition, we recorded $ 21 million of long-lived asset impairments related to Best Buy Health, included in SG&A on our Condensed Consolidated Statements of Earnings.

The remaining carrying value of net long-lived assets subject to impairment approximates fair value and was immaterial as of November 1, 2025.

All nonrecurring fair value remeasurements mentioned above were based on significant unobservable inputs (Level 3).

Fair Value of Financial Instruments

The fair values of cash, certain restricted cash, receivables, accounts payable and other payables approximated their carrying values because of the short-term nature of these instruments.

If these instruments were measured at fair value in the financial statements, they would be classified as Level 1 in the fair value hierarchy.

Fair values for other investments held at cost are not readily available, but we estimate that the carrying values for these investments approximate their fair values.

Long-term debt is presented at carrying value on our Condensed Consolidated Balance Sheets.

1 unchanged sentence

Long-term debt balances were as follows ($ in millions):

November 1, 2025 February 1, 2025 November 2, 2024

May 2, 2026 January 31, 2026 May 3, 2025

Fair Value Carrying Value Fair Value Carrying Value Fair Value Carrying Value

3 unchanged sentences

Derivative Instruments

We manage our economic and transaction exposure to certain risks by using foreign exchange forward contracts to hedge against the effect of Canadian dollar exchange rate fluctuations on a portion of our net investment in our Canadian operations and by using interest rate swaps to mitigate interest rate risk on our $ 500 million of principal amount of notes due October 1, 2028.

In addition, we use foreign currency forward contracts not designated as hedging instruments to manage the impact of fluctuations in foreign currency exchange rates relative to recognized receivable and payable balances denominated in non-functional currencies.

Our derivative instruments designated as net investment hedges and fair value hedges are recorded on our Condensed Consolidated Balance Sheets at fair value.

See Note 4, Fair Value Measurements , for gross fair values of our outstanding derivative instruments and corresponding fair value classifications.

Notional amounts of our derivative instruments were as follows ($ in millions):

November 1, 2025 February 1, 2025 November 2, 2024

The net notional amounts of our derivative instruments were as follows ($ in millions):

May 2, 2026 January 31, 2026 May 3, 2025

Derivatives designated as net investment hedges $ 119 $ 119 $ 119

4 unchanged sentences

Gain (Loss) Recognized

Three Months Ended Nine Months Ended

November 1, 2025 November 2, 2024 November 1, 2025 November 2, 2024

Three Months Ended

May 2, 2026 May 3, 2025

Interest rate swaps $ ( 7 ) $ 6

3 unchanged sentences

Revolving Credit Facility

On April 18, 2025, we entered into a $ 1.25 billion five-year senior unsecured revolving credit facility agreement (the “Five-Year Facility Agreement”) with a syndicate of banks.

The Five-Year Facility Agreement replaced the previous $ 1.25 billion senior unsecured revolving credit facility (the “Previous Facility”) with a syndicate of banks, which was entered into April 2023 and scheduled to expire April 2028, but was terminated on April 18, 2025.

The Five-Year Facility Agreement permits borrowings of up to $ 1.25 billion and expires in April 2030.

There were no borrowings outstanding under the Five-Year Facility Agreement as of November 1, 2025, or the Previous Facility as of February 1, 2025, or November 2, 2024.

We have a $ 1.25 billion five-year senior unsecured revolving credit facility agreement (the “Five-Year Facility Agreement”) with a syndicate of banks that expires in April 2030.

There were no borrowings outstanding under the Five-Year Facility Agreement as of May 2, 2026, January 31, 2026, or May 3, 2025.

Long-Term Debt

Long-term debt consisted of the following ($ in millions):

November 1, 2025 February 1, 2025 November 2, 2024

May 2, 2026 January 31, 2026 May 3, 2025

Notes, 4.45 %, due October 1, 2028 ("2028 Notes")

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The 2028 Notes mature in fiscal 2029 and the 2030 Notes mature in fiscal 2031.

We generate substantially all of our revenue from contracts with customers from the sale of products and services.

We generate most of our revenue from contracts with customers from the sale of products and services.

Contract balances primarily relate to unfulfilled membership benefits and services not yet completed, product merchandise not yet delivered to customers, unredeemed gift cards and deferred revenue from our private label and co-branded credit card arrangement.

Contract balances were as follows ($ in millions):

November 1, 2025 February 1, 2025 November 2, 2024

May 2, 2026 January 31, 2026 May 3, 2025

Receivables, net (1)

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Long-term liabilities 197 205 221

(1) Receivables are recorded net of allowances for expected credit losses of $ 15 million, $ 20 million and $ 16 million as of November 1, 2025, February 1, 2025, and November 2, 2024, respectively.

During the first nine months of fiscal 2026 and fiscal 2025, $ 1,003 million and $ 1,054 million of revenue was recognized, respectively, that was included in the contract liabilities at the beginning of the respective periods.

(1) Receivables are recorded net of allowances for expected credit losses of $ 13 million, $ 17 million and $ 15 million as of May 2, 2026, January 31, 2026, and May 3, 2025, respectively.

During the first three months of fiscal 2027 and fiscal 2026, $ 569 million and $ 614 million of revenue was recognized, respectively, that was included in the contract liabilities at the beginning of the respective periods.

Estimated revenue from our contract liability balances expected to be recognized in future periods if the performance of the contract is expected to have an initial duration of more than one year is as follows ($ in millions):

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Thereafter 63

See Note 11, Segments , for information on our revenue by reportable segment and product category.

See Note 11, Segments , for information on our revenue by segment and category.

Earnings per Share

We compute our basic earnings per share based on the weighted-average number of common shares outstanding and our diluted earnings per share based on the weighted-average number of common shares outstanding adjusted by the number of additional shares that would have been outstanding had the potentially dilutive common shares been issued as calculated using the treasury stock method.

Reconciliations of the numerators and denominators of basic and diluted earnings per share were as follows ($ and shares in millions, except per share amounts):

Three Months Ended Nine Months Ended

November 1, 2025 November 2, 2024 November 1, 2025 November 2, 2024

Three Months Ended

May 2, 2026 May 3, 2025

Net earnings $ 276 $ 202

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On February 28, 2022, our Board of Directors approved a $ 5.0 billion share repurchase program.

The program had $ 3.1 billion remaining available for repurchases as of November 1, 2025.

The program had $ 3.0 billion remaining available for repurchases as of May 2, 2026.

There is no expiration date governing the period over which we can repurchase shares under this authorization.

Information regarding the shares we repurchased and retired was as follows ($ and shares in millions, except per share amounts):

Three Months Ended Nine Months Ended

November 1, 2025 November 2, 2024 November 1, 2025 November 2, 2024

There were no share repurchases during the three months ended May 2, 2026.

Information regarding the shares we repurchased and retired in the prior year was as follows ($ and shares in millions, except per share amounts):

Three Months Ended May 3, 2025

Total cost of shares repurchased $ 100

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We provide disclosure of matters where we believe it is reasonably possible the impact may be material to our Condensed Consolidated Financial Statements.

Segment and category revenue information was as follows ($ in millions):

Three Months Ended Nine Months Ended

November 1, 2025 November 2, 2024 November 1, 2025 November 2, 2024

Revenue Category Reclassification

Beginning in the first quarter of fiscal 2027, we reclassified certain amounts within our revenue categories to better align with management's current view of the business.

The reclassification primarily relates to credit card revenue and digital content revenue (including digital gaming, software and subscriptions) that were previously included in various product revenue categories and, following the reclassification, are now included within services revenue.

The reclassification impacts only the presentation of revenue by category and does not affect previously reported total revenue, net earnings or cash flows.

The key components of each revenue category are now as follows:

• Computing and Mobile Phones - computing (including desktops, notebooks and peripherals), mobile phones (including related mobile network carrier commissions), networking, tablets (including e-readers) and wearables (including smartwatches);

• Consumer Electronics - digital imaging, health and fitness products, home theater (including accessories, soundbars and televisions), portable audio (including headphones and portable speakers) and smart home;

• Appliances - large appliances (including dishwashers, laundry, ovens and refrigerators) and small appliances (including blenders, coffee makers, vacuums and personal care);

• Entertainment - drones, gaming (including hardware, peripherals and certain software, as well as augmented reality glasses), toys and virtual reality;

• Services - advertising, credit card revenue, digital content (including digital gaming, software and subscriptions), fulfillment, health-related services, installation, marketplace commissions, memberships, repair, technical support and warranty-related services;

• Other - other product offerings (including baby, food and beverage and outdoor living).

Revenue information by segment and category was as follows ($ in millions):

Three Months Ended

May 2, 2026 May 3, 2025 (1)

Computing and Mobile Phones $ 3,887 $ 3,737

1 unchanged sentence

Appliances 841 979

Entertainment 543 479 1,673 1,497

Services 786 749

Other 60 70 210 221

Entertainment 548 398

Total Domestic revenue 8,249 8,127

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Appliances 53 56

Entertainment 54 47 164 132

Services 49 47

Other 7 7 23 23

Entertainment 51 41

Total International revenue 687 640

Total revenue $ 8,936 $ 8,767

Adjusted operating income by segment and the reconciliation to consolidated earnings before income tax expense and equity in income (loss) of affiliates were as follows ($ in millions):

(1) Amounts for the three months ended May 3, 2025, have been recast to conform to the current presentation.

See Revenue Category Reclassificatio n, above, for additional information.

Adjusted operating income by segment and the reconciliation to consolidated earnings before income tax expense and equity in loss of affiliates were as follows ($ in millions):

Three Months Ended

November 1, 2025 November 2, 2024

International Total Domestic (1)

International Total

Revenue $ 8,878 $ 794 $ 9,672 $ 8,697 $ 748 $ 9,445

Cost of sales 6,811 613 7,424 6,648 580 7,228

Adjusted SG&A (2)

1,707 153 1,860 1,711 155 1,866

Adjusted operating income $ 360 $ 28 388 $ 338 $ 13 351

Restructuring charges ( 5 ) ( 4 )

Goodwill and intangible asset impairments 171 -

Intangible asset amortization 3 5

Long-lived asset impairment 21 -

Operating income 198 350

Other income (expense):

Investment income and other 19 19

Interest expense ( 12 ) ( 13 )

Earnings before income tax expense and equity in income (loss) of affiliates $ 205 $ 356

(1) Domestic segment adjusted operating income includes certain operations that are based in foreign tax jurisdictions and primarily relate to sourcing products into the U.S.

(2) Adjusted SG&A excludes amortization of definite-lived intangible assets associated with acquisitions and non-cash impairments of certain long-lived assets.

Nine Months Ended

November 1, 2025 November 2, 2024

May 2, 2026 May 3, 2025

International Total Domestic (1)

6 unchanged sentences

Restructuring charges ( 9 ) 109

Goodwill and intangible asset impairments 171 -

Intangible asset amortization 2 5

Long-lived asset impairment 21 -

Operating income 370 219

Other income (expense):

Loss on disposal of subsidiaries ( 4 ) -

Investment income and other 19 15

Interest expense ( 11 ) ( 12 )

Earnings before income tax expense and equity in income (loss) of affiliates $ 680 $ 1,072

Earnings before income tax expense and equity in loss of affiliates $ 378 $ 222

(1) Domestic segment Adjusted operating income includes certain operations that are based in foreign tax jurisdictions and primarily relate to sourcing products into the U.S.

(2) Adjusted SG&A excludes amortization of definite-lived intangible assets associated with acquisitions and non-cash impairments of certain long-lived assets.

Other expense and cash flow information by segment was as follows ($ in millions):

Three Months Ended Nine Months Ended

November 1, 2025 November 2, 2024 November 1, 2025 November 2, 2024

(2) Adjusted SG&A excludes amortization of definite-lived intangible assets associated with acquisitions.

Cash flow and other expense information by segment was as follows ($ in millions):

Three Months Ended

May 2, 2026 May 3, 2025

Capital expenditures

7 unchanged sentences

Asset information by segment was as follows ($ in millions):

November 1, 2025 February 1, 2025 November 2, 2024

May 2, 2026 January 31, 2026 May 3, 2025

Domestic $ 13,586 $ 13,407 $ 12,835

2 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements