Best Buy Q4 revenue edges down as earnings jump

Core Insights - Best Buy reported higher net earnings for Q4 FY26 despite a slight decline in overall revenue, indicating improved profitability [1][5] - The company experienced a decrease in comparable sales, reflecting softer customer demand during the holiday quarter [5] Financial Performance - Q4 FY26 enterprise revenue totaled $13.81 billion, down from $13.94 billion in Q4 FY25 [1] - Net earnings rose significantly to $541 million from $117 million year-over-year [1] - Operating income increased to $721 million, resulting in an operating margin of 5.2%, compared to 1.6% in the prior-year quarter [2] - Basic EPS climbed to $2.58 from $0.55, while diluted EPS increased to $2.56 from $0.54 [2] Segment Performance - Domestic revenue reached $12.57 billion, down from $12.71 billion in the same quarter last year [2] - Domestic online revenue was $4.91 billion, declining 2.3% on a comparable basis, representing 39% of domestic revenue [2] - International revenue was $1.23 billion, broadly flat compared to Q4 FY25, with a 0.5% increase driven by favorable foreign exchange effects [3] Profitability Metrics - Gross profit for Q4 FY26 totaled $2.88 billion, slightly down from $2.91 billion a year earlier [1] - Domestic gross profit rate remained stable at 20.9% year-on-year [3] - International gross profit rate declined to 20.5% from 21.4% [3] Full Year Outlook - For the full year, revenue was $41.69 billion, up from $41.52 billion [3] - Best Buy expects FY27 revenue to be between $41.2 billion and $42.1 billion, with adjusted diluted EPS projected at $6.30 to $6.60 [4]