Best Buy Co., Inc. (BBY) AI Stock Analysis

Best Buy Co., Inc. retails technology products, appliances, and entertainment goods across its Domestic and International segments in the United States and Canada. Its product selection features computing devices, mobile phones, networking equipment, digital imaging, home theater setups, audio gear, and smart home technologies. It also sells home appliances including refrigerators and vacuums, alongside gaming products, drones, and music. In addition to merchandising under brands such as Best Buy, Magnolia, and Pacific Kitchen, the company offers consultation, delivery, installation, warranty, and technical support services through its Geek Squad team.

Best Buy experienced top-line contraction from FY2022 to FY2025, with revenue decreasing from $51.76B to $41.53B before recovering slightly by 0.4% to $41.69B in FY2026. The five-year revenue CAGR through FY2026 was -2.5%. Net income reached $1.07B in FY2026 with a net margin of 2.6%, up from $927.0M and a 2.2% net margin in FY2025, but down from $2.45B in FY2022. For the trailing twelve months ended July 31, 2026, revenue stood at $42.20B. In the latest quarter, quarterly revenue grew 3.6% year-over-year, while quarterly earnings surged 70.1%.

As of July 31, 2026, Best Buy held $2.25B in cash and short-term investments against total debt of $4.13B, resulting in net debt of $1.88B. The company recorded a current ratio of 1.12 and a debt-to-equity ratio of 1.30 on shareholders' equity of $3.18B. In FY2026, operating cash flow reached $1.96B and free cash flow was $1.26B. Capital expenditures totaled $704.0M, while Best Buy returned capital through $801.0M in dividends paid and $273.0M in share buybacks.

Best Buy trades at a trailing P/E of 15.4x and a forward P/E of 13.6x, both below the median of its S&P 500 Consumer Cyclical peers of 20.1x and 15.7x, respectively. Its enterprise value to EBITDA ratio is 8.1x, compared to the peer median of 13.8x, and its price-to-sales ratio stands at 0.5x versus 2.0x for peers. Over the past year, BBY returned 24.2%, outpacing the S&P 500 return of 16.8%. However, its five-year return of 3.0% lagged the broader market gain of 83.0%.

Best Buy offers an annual forward dividend of $3.84 per share, translating to a dividend yield of 4.15%. The company has paid dividends for 24 consecutive years, achieving a five-year annualized dividend growth rate of 11.6%. Its dividend payout ratio stands at 56.7%, and its most recent ex-dividend date was September 17, 2026.

Wall Street sentiment reflects 4 Strong Buy, 19 Hold, 1 Sell, and 1 Strong Sell recommendations among tracked analysts. The mean price target is $87.60, representing a 5.4% downside from the last close of $92.63. Best Buy beat EPS expectations in each of the last 4 quarters. For the current fiscal year ending January 31, 2027, consensus estimates project EPS of $6.83 on revenue of $42.67B. The next earnings report is scheduled for November 24, 2026.

This page is an AI-written research summary of Best Buy Co., Inc. (BBY). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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