2 unchanged sentences
$ in millions, except per share amounts (unaudited)
−Removed: May 2, 2026 January 31, 2026 May 3, 2025
+Added: August 1, 2026 January 31, 2026 August 2, 2025
Current assets
40 unchanged sentences
$ and shares in millions, except per share amounts (unaudited)
−Removed: Three Months Ended
−Removed: May 2, 2026 May 3, 2025
+Added: Three Months Ended Six Months Ended
+Added: August 1, 2026 August 2, 2025 August 1, 2026 August 2, 2025
Revenue $ 9,779 $ 9,438 $ 18,715 $ 18,205
5 unchanged sentences
Other income (expense):
+Added: Loss on disposal of subsidiaries - ( 4 ) - ( 4 )
Investment income and other 20 18 39 33
Interest expense ( 11 ) ( 12 ) ( 22 ) ( 24 )
−Removed: Earnings before income tax expense and equity in loss of affiliates 378 222
+Added: Earnings before income tax expense and equity in income of affiliates 430 253 808 475
Income tax expense 116 68 218 87
−Removed: Equity in loss of affiliates - ( 1 )
+Added: Equity in income of affiliates 1 1 1 -
Net earnings $ 315 $ 186 $ 591 $ 388
7 unchanged sentences
$ in millions (unaudited)
−Removed: Three Months Ended
−Removed: May 2, 2026 May 3, 2025
+Added: Three Months Ended Six Months Ended
+Added: August 1, 2026 August 2, 2025 August 1, 2026 August 2, 2025
Net earnings $ 315 $ 186 $ 591 $ 388
4 unchanged sentences
$ in millions (unaudited)
−Removed: Three Months Ended
−Removed: May 2, 2026 May 3, 2025
+Added: Six Months Ended
+Added: August 1, 2026 August 2, 2025
Operating activities
5 unchanged sentences
Deferred income taxes 15 45
+Added: Loss on disposal of subsidiaries - 4
Other, net 1 4
9 unchanged sentences
Additions to property and equipment ( 344 ) ( 341 )
+Added: Disposal of subsidiary - ( 27 )
+Added: Other, net 5 ( 1 )
Total cash used in investing activities ( 339 ) ( 369 )
12 unchanged sentences
Common Shares Common Stock Additional Paid-In Capital Retained Earnings Accumulated Other Comprehensive
+Added: Income (Loss) Total
+Added: Balances at May 2, 2026 210.7 $ 22 $ 65 $ 2,677 $ 319 $ 3,083
+Added: Net earnings, three months ended August 1, 2026 - - - 315 - 315
+Added: Other comprehensive loss:
+Added: Foreign currency translation adjustments, net of tax - - - - ( 9 ) ( 9 )
+Added: Stock-based compensation - - 34 - - 34
+Added: Issuance of common stock 0.1 - - - - -
+Added: Common stock dividends, $ 0.96 per share
+Added: - - 5 ( 208 ) - ( 203 )
+Added: Repurchase of common stock ( 0.4 ) - ( 37 ) - - ( 37 )
+Added: Balances at August 1, 2026 210.4 $ 22 $ 67 $ 2,784 $ 310 $ 3,183
Balances at January 31, 2026 209.1 $ 22 $ 14 $ 2,610 $ 318 $ 2,964
−Removed: Net earnings, three months ended May 2, 2026 - - - 276 - 276
−Removed: Other comprehensive income:
+Added: Net earnings, six months ended August 1, 2026 - - - 591 - 591
+Added: Other comprehensive loss:
Foreign currency translation adjustments, net of tax - - - - ( 8 ) ( 8 )
3 unchanged sentences
- - 12 ( 417 ) - ( 405 )
+Added: Repurchase of common stock ( 0.4 ) - ( 37 ) - - ( 37 )
+Added: Balances at August 1, 2026 210.4 $ 22 $ 67 $ 2,784 $ 310 $ 3,183
Balances at May 3, 2025 211.3 $ 22 $ - $ 2,428 $ 313 $ 2,763
+Added: Net earnings, three months ended August 2, 2025 - - - 186 - 186
+Added: Stock-based compensation - - 35 - - 35
+Added: Common stock dividends, $ 0.95 per share
+Added: - - 4 ( 205 ) - ( 201 )
+Added: Repurchase of common stock ( 0.9 ) - ( 39 ) ( 28 ) - ( 67 )
+Added: Balances at August 2, 2025 210.4 $ 22 $ - $ 2,381 $ 313 $ 2,716
Balances at February 1, 2025 211.4 $ 22 $ - $ 2,486 $ 300 $ 2,808
−Removed: Net earnings, three months ended May 3, 2025 - - - 202 - 202
+Added: Net earnings, six months ended August 2, 2025 - - - 388 - 388
Other comprehensive income:
5 unchanged sentences
Repurchase of common stock ( 2.5 ) - ( 87 ) ( 80 ) - ( 167 )
−Removed: Balances at May 3, 2025 211.3 $ 22 $ - $ 2,428 $ 313 $ 2,763
+Added: Balances at August 2, 2025 210.4 $ 22 $ - $ 2,381 $ 313 $ 2,716
See Notes to Condensed Consolidated Financial Statements.
1 unchanged sentence
Basis of Presentation
−Removed: Unless the context otherwise requires, the terms “Best Buy,” “we,” “us,” “our” and the “company” in these Notes to Condensed Consolidated Financial Statements refer to Best Buy Co., Inc.
+Added: Unless the context otherwise requires, the use of the terms “Best Buy,” “we,” “us,” “our” and the “company” in these Notes to Condensed Consolidated Financial Statements refers to Best Buy Co., Inc.
and, as applicable, its consolidated subsidiaries.
4 unchanged sentences
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 January 31, 2026.
−Removed: The first three months of fiscal 2027 and fiscal 2026 each included 13 weeks.
+Added: The first six months of fiscal 2027 and fiscal 2026 each included 26 weeks.
Unless otherwise noted, references to years in these notes to condensed consolidated financial statements relate to fiscal years, not calendar years.
−Removed: 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.
−Removed: No such events were identified.
+Added: In preparing the accompanying condensed consolidated financial statements, we evaluated the period from August 1, 2026, through the date the financial statements were issued for material subsequent events requiring recognition or disclosure.
+Added: Other than the receipt of additional tariff refunds summarized below, no such events were identified.
+Added: Tariff Refunds
+Added: In the second quarter of fiscal 2027, $ 34 million of tariffs imposed under the International Emergency Economic Powers Act were refunded pursuant to the U.S.
+Added: Supreme Court decision on February 20, 2026, that such tariffs were unauthorized.
+Added: On September 2, 2026, an additional $ 41 million was refunded, which will be recorded in the financial statements in the third quarter of fiscal 2027.
+Added: These refunds, in aggregate, represent substantially all of the tariff refunds we have requested.
+Added: Tariff refunds are recorded as a reduction to Cost of sales on our Condensed Consolidated Statements of Earnings in the fiscal period received.
Unadopted Accounting Pronouncements
5 unchanged sentences
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.
−Removed: 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.
+Added: Our liability associated with the funded participation in the program, which is primarily included in Accounts payable on our Condensed Consolidated Balance Sheets, was $ 986 million, $ 600 million and $ 872 million as of August 1, 2026, January 31, 2026, and August 2, 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):
−Removed: May 2, 2026 January 31, 2026 May 3, 2025
+Added: August 1, 2026 January 31, 2026 August 2, 2025
Cash and cash equivalents $ 2,255 $ 1,738 $ 1,456
1 unchanged sentence
Total cash, cash equivalents and restricted cash $ 2,534 $ 2,023 $ 1,713
−Removed: Amounts included in restricted cash are primarily restricted to cover product protection plans provided under our membership offerings and self-insurance liabilities.
+Added: Amounts included in restricted cash are primarily restricted to support obligations related to product protection plans provided under our membership offerings, self-insurance liabilities and amounts held on behalf of third-party sellers on Best Buy Marketplace.
Restructuring
Restructuring charges were as follows ($ in millions):
−Removed: Three Months Ended
−Removed: May 2, 2026 May 3, 2025
+Added: Three Months Ended Six Months Ended
+Added: August 1, 2026 August 2, 2025 August 1, 2026 August 2, 2025
Fiscal 2026 Labor and Store Optimization Initiative $ ( 3 ) $ 122 $ ( 11 ) $ 122
7 unchanged sentences
The composition of restructuring charges incurred related to this initiative were as follows ($ in millions):
−Removed: Three Months Ended May 2, 2026 Cumulative Amount as of May 2, 2026
−Removed: Domestic Domestic International Total
+Added: Three Months Ended Six Months Ended Cumulative Amount as of
+Added: August 1, 2026 August 2, 2025 August 1, 2026 August 2, 2025 August 1, 2026
Termination benefits $ ( 2 ) $ 78 $ ( 9 ) $ 78 $ 59
1 unchanged sentence
( 1 ) 41 ( 2 ) 41 44
−Removed: Total $ ( 8 ) $ 106 $ 3 $ 109
−Removed: (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.
−Removed: The remaining carrying value of net assets approximates fair value and was immaterial as of May 2, 2026.
+Added: Total Domestic ( 3 ) 119 ( 11 ) 119 103
+Added: International:
+Added: Termination benefits - 3 - 3 3
+Added: Total restructuring charges $ ( 3 ) $ 122 $ ( 11 ) $ 122 $ 106
+Added: (1) Amounts primarily represent asset impairments related to planned store closures, an impairment related to an indefinite-lived tradename and other exit costs.
+Added: The remaining carrying value of net assets approximates fair value and was immaterial as of August 1, 2026.
Restructuring accrual activity related to this initiative was as follows ($ in millions):
5 unchanged sentences
( 9 ) - ( 9 )
−Removed: Balances at May 2, 2026 $ 27 $ 2 $ 29
−Removed: (1) Represents adjustments primarily related to higher-than-expected employee retention from previously planned organizational changes.
−Removed: 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.
+Added: Balances at August 1, 2026 $ 24 $ 2 $ 26
+Added: (1) Represents subsequent adjustments to previously planned organizational changes, primarily related to higher-than-expected employee retention.
+Added: Our restructuring accrual liabilities primarily related to termination benefits of $ 26 million as of August 1, 2026, reflect expected future cash payments primarily during fiscal 2027 and fiscal 2028.
Best Buy Health Optimization and China Sourcing Initiative
2 unchanged sentences
In addition, we also made significant changes to reduce our exposure to tariffs, particularly in China.
−Removed: 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.
+Added: We currently do not expect to incur material future restructuring charges related to this initiative and no material liability remains as of August 1, 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.
−Removed: 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.
+Added: 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):
2 unchanged sentences
Cash payments ( 3 )
−Removed: Balance at May 2, 2026 $ 30
−Removed: 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.
+Added: Adjustments (1)
+Added: Balance at August 1, 2026 $ 26
+Added: (1) Represents subsequent adjustments to previously planned organizational changes, primarily related to higher-than-expected employee retention.
+Added: Our restructuring accrual liability related to termination benefits of $ 26 million as of August 1, 2026, reflects expected future cash payments primarily during fiscal 2028.
Goodwill balances by segment were as follows ($ in millions):
−Removed: May 2, 2026 January 31, 2026 May 3, 2025
+Added: August 1, 2026 January 31, 2026 August 2, 2025
Gross Carrying Amount Cumulative Impairment Gross Carrying Amount Cumulative Impairment (1)
9 unchanged sentences
Balance Sheet Location (1)
−Removed: Fair Value Hierarchy May 2, 2026 January 31, 2026 May 3, 2025
+Added: Fair Value Hierarchy August 1, 2026 January 31, 2026 August 2, 2025
Money market funds (2)
20 unchanged sentences
Nonrecurring Fair Value Measurements
−Removed: 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.
+Added: In the second quarter and 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.
These nonrecurring fair value remeasurements were based on significant unobservable inputs (Level 3).
4 unchanged sentences
Long-term debt balances were as follows ($ in millions):
−Removed: May 2, 2026 January 31, 2026 May 3, 2025
+Added: August 1, 2026 January 31, 2026 August 2, 2025
Fair Value Carrying Value Fair Value Carrying Value Fair Value Carrying Value
4 unchanged sentences
The net notional amounts of our derivative instruments were as follows ($ in millions):
−Removed: May 2, 2026 January 31, 2026 May 3, 2025
+Added: August 1, 2026 January 31, 2026 August 2, 2025
Derivatives designated as net investment hedges $ 119 $ 119 $ 119
4 unchanged sentences
Gain (Loss) Recognized
−Removed: Three Months Ended
−Removed: May 2, 2026 May 3, 2025
+Added: Three Months Ended Six Months Ended
+Added: August 1, 2026 August 2, 2025 August 1, 2026 August 2, 2025
Interest rate swaps $ - $ 9 $ ( 7 ) $ 15
4 unchanged sentences
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.
−Removed: There were no borrowings outstanding under the Five-Year Facility Agreement as of May 2, 2026, January 31, 2026, or May 3, 2025.
+Added: There were no borrowings outstanding under the Five-Year Facility Agreement as of August 1, 2026, January 31, 2026, or August 2, 2025.
Long-Term Debt
Long-term debt consisted of the following ($ in millions):
−Removed: May 2, 2026 January 31, 2026 May 3, 2025
+Added: August 1, 2026 January 31, 2026 August 2, 2025
Notes, 4.45 %, due October 1, 2028 ("2028 Notes")
14 unchanged sentences
Contract balances were as follows ($ in millions):
−Removed: May 2, 2026 January 31, 2026 May 3, 2025
+Added: August 1, 2026 January 31, 2026 August 2, 2025
Receivables, net (1)
6 unchanged sentences
Long-term liabilities 191 205 213
−Removed: (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.
−Removed: 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.
+Added: (1) Receivables are recorded net of allowances for expected credit losses of $ 14 million, $ 17 million and $ 14 million as of August 1, 2026, January 31, 2026, and August 2, 2025, respectively.
+Added: During the first six months of fiscal 2027 and fiscal 2026, $ 802 million and $ 853 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):
7 unchanged sentences
Thereafter 63
−Removed: See Note 11, Segments , for information on our revenue by segment and category.
+Added: See Note 11, Segments , for revenue information by segment and category.
Earnings per Share
Reconciliations of the numerators and denominators of basic and diluted earnings per share were as follows ($ and shares in millions, except per share amounts):
−Removed: Three Months Ended
−Removed: May 2, 2026 May 3, 2025
+Added: Three Months Ended Six Months Ended
+Added: August 1, 2026 August 2, 2025 August 1, 2026 August 2, 2025
Net earnings $ 315 $ 186 $ 591 $ 388
7 unchanged sentences
On February 28, 2022, our Board of Directors approved a $ 5.0 billion share repurchase program.
−Removed: The program had $ 3.0 billion remaining available for repurchases as of May 2, 2026.
+Added: The program had $ 3.0 billion remaining available for repurchases as of August 1, 2026.
There is no expiration date governing the period over which we can repurchase shares under this authorization.
−Removed: There were no share repurchases during the three months ended May 2, 2026.
−Removed: Information regarding the shares we repurchased and retired in the prior year was as follows ($ and shares in millions, except per share amounts):
−Removed: Three Months Ended May 3, 2025
+Added: Information regarding the shares we repurchased and retired was as follows ($ and shares in millions, except per share amounts):
+Added: Three Months Ended Six Months Ended
+Added: August 1, 2026 August 2, 2025 August 1, 2026 August 2, 2025
Total cost of shares repurchased $ 37 $ 67 $ 37 $ 167
14 unchanged sentences
• Appliances - large appliances (including dishwashers, laundry, ovens and refrigerators) and small appliances (including blenders, coffee makers, vacuums and personal care);
−Removed: • Entertainment - drones, gaming (including hardware, peripherals and certain software, as well as augmented reality glasses), toys and virtual reality;
+Added: • Entertainment - drones, gaming (including hardware, peripherals and certain software, as well as AI glasses and trading cards), 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;
1 unchanged sentence
Revenue information by segment and category was as follows ($ in millions):
−Removed: Three Months Ended
−Removed: May 2, 2026 May 3, 2025 (1)
+Added: Three Months Ended Six Months Ended
+Added: August 1, 2026 August 2, 2025 (1)
+Added: August 1, 2026 August 2, 2025 (1)
Computing and Mobile Phones $ 4,127 $ 3,866 $ 8,014 $ 7,603
3 unchanged sentences
Entertainment 585 624 1,133 1,022
+Added: Other 42 64 78 113
Total Domestic revenue 9,070 8,698 17,319 16,825
5 unchanged sentences
Entertainment 50 68 101 109
+Added: Other 7 9 18 17
Total International revenue 709 740 1,396 1,380
Total revenue $ 9,779 $ 9,438 $ 18,715 $ 18,205
−Removed: (1) Amounts for the three months ended May 3, 2025, have been recast to conform to the current presentation.
+Added: (1) Amounts for the three and six months ended August 2, 2025, have been recast to conform to the current presentation.
See Revenue Category Reclassificatio n, above, for additional information.
−Removed: 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):
+Added: Adjusted operating income by segment and the reconciliations to consolidated earnings before income tax expense and equity in income of affiliates were as follows ($ in millions):
Three Months Ended
−Removed: May 2, 2026 May 3, 2025
+Added: August 1, 2026 August 2, 2025
International Total Domestic (1)
9 unchanged sentences
Other income (expense):
+Added: Loss on disposal of subsidiaries - ( 4 )
Investment income and other 20 18
Interest expense ( 11 ) ( 12 )
−Removed: Earnings before income tax expense and equity in loss of affiliates $ 378 $ 222
+Added: Earnings before income tax expense and equity in income of affiliates $ 430 $ 253
(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.
+Added: Six Months Ended
+Added: August 1, 2026 August 2, 2025
+Added: International Total Domestic (1)
+Added: International Total
+Added: Revenue $ 17,319 $ 1,396 $ 18,715 $ 16,825 $ 1,380 $ 18,205
+Added: Cost of sales 13,185 1,090 14,275 12,884 1,078 13,962
+Added: Adjusted SG&A (2)
+Added: 3,372 288 3,660 3,261 280 3,541
+Added: Adjusted operating income $ 762 $ 18 780 $ 680 $ 22 702
+Added: Restructuring charges ( 15 ) 223
+Added: Intangible asset amortization 4 9
+Added: Operating income 791 470
+Added: Other income (expense):
+Added: Loss on disposal of subsidiaries - ( 4 )
+Added: Investment income and other 39 33
+Added: Interest expense ( 22 ) ( 24 )
+Added: Earnings before income tax expense and equity in income of affiliates $ 808 $ 475
+Added: (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.
+Added: (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):
−Removed: Three Months Ended
−Removed: May 2, 2026 May 3, 2025
+Added: Three Months Ended Six Months Ended
+Added: August 1, 2026 August 2, 2025 August 1, 2026 August 2, 2025
Capital expenditures
7 unchanged sentences
Asset information by segment was as follows ($ in millions):
−Removed: May 2, 2026 January 31, 2026 May 3, 2025
+Added: August 1, 2026 January 31, 2026 August 2, 2025
Domestic $ 14,742 $ 13,407 $ 13,926
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.