Revenue growth has stabilized at 3.6% in 2027Q2, while operating margin has expanded to 4.3% from 1.6% in 2025Q4, indicating improved SG&A leverage.
Best Buy Co., Inc. (BBY) annual income statement — 30-year revenue, gross profit & net income history
| Metric | TTM | Jan'26 | Feb'25 | Feb'24 | Jan'23 | Jan'22 | Jan'21 | Feb'20 | Feb'19 | Feb'18 | Jan'17 | Jan'16 | Jan'15 | Feb'14 | Feb'13 | Mar'12 | Feb'11 | Feb'10 | Feb'09 | Mar'08 | Mar'07 | Feb'06 | Feb'05 | Feb'04 | Mar'03 | Mar'02 | Mar'01 | Feb'00 | Feb'99 | Feb'98 | Mar'97 |
|---|
| Sales/Revenue | 42.2B | 41.69B | 41.53B | 43.45B | 46.3B | 51.76B | 47.26B | 43.64B | 42.88B | 42.15B | 39.4B | 39.53B | 40.34B | 40.61B | 41.73B | 45.46B | 50.27B | 49.69B | 45.02B | 40.02B | 35.93B | 30.85B | 27.43B | 24.55B | 20.95B | 17.71B | 15.19B | 12.49B | 10.08B | 8.36B | 7.77B |
| Revenue Growth % | 1.45% | 0.39% | -4.43% | -6.15% | -10.55% | 9.52% | 8.3% | 1.77% | 1.73% | 6.97% | -0.32% | -2.01% | -0.67% | -2.68% | -8.2% | -9.58% | 1.16% | 10.39% | 12.47% | 11.38% | 16.49% | 12.45% | 11.76% | 17.19% | 18.27% | 16.6% | 21.57% | 23.97% | 20.57% | 7.56% | 7.67% |
| Cost of Goods Sold | 32.63B | 32.32B | 32.14B | 33.85B | 36.39B | 40.12B | 36.69B | 33.59B | 32.92B | 32.27B | 29.96B | 30.34B | 31.29B | 31.21B | 31.89B | 34.47B | 37.21B | 37.2B | 34.02B | 30.48B | 27.16B | 23.12B | 20.94B | 18.68B | 16B | 13.94B | 12.18B | 9.99B | 8.17B | 6.95B | 6.64B |
| COGS % of Revenue | - | 77.52% | 77.4% | 77.9% | 78.59% | 77.51% | 77.63% | 76.97% | 76.77% | 76.57% | 76.04% | 76.75% | 77.57% | 76.86% | 76.41% | 75.84% | 74.01% | 74.86% | 75.57% | 76.15% | 75.6% | 74.95% | 76.32% | 76.09% | 76.38% | 78.71% | 80.17% | 79.97% | 81.09% | 83.21% | 85.51% |
| Gross Profit | 9.57B | 9.37B | 9.38B | 9.6B | 9.91B | 11.64B | 10.57B | 10.05B | 9.96B | 9.88B | 9.44B | 9.19B | 9.05B | 9.4B | 9.84B | 10.98B | 12.54B | 12.04B | 11B | 9.55B | 8.77B | 7.73B | 6.5B | 5.87B | 4.95B | 3.77B | 3.01B | 2.5B | 1.89B | 1.38B | 1.13B |
| Gross Margin % | 22.68% | 22.48% | 22.6% | 22.1% | 21.41% | 22.49% | 22.37% | 23.03% | 23.23% | 23.43% | 23.96% | 23.25% | 22.43% | 23.14% | 23.59% | 24.16% | 24.95% | 24.23% | 24.43% | 23.85% | 24.4% | 25.05% | 23.68% | 23.92% | 23.61% | 21.29% | 19.83% | 20.03% | 18.78% | 16.55% | 14.49% |
| Gross Profit Growth % | - | -0.13% | -2.27% | -3.12% | -14.85% | 10.09% | 5.22% | 0.87% | 0.86% | 4.62% | 2.71% | 1.59% | -3.75% | -4.52% | -10.38% | -12.42% | 4.14% | 9.49% | 15.21% | 8.86% | 13.5% | 18.95% | 10.63% | 18.73% | 31.17% | 25.17% | 20.34% | 32.23% | 36.84% | 22.83% | 13.6% |
| Operating Expenses | 7.73B | 7.62B | 7.65B | 8.03B | 8.12B | 8.6B | 8.18B | 8.04B | 8.06B | 8.03B | 7.59B | 7.82B | 7.6B | 8.26B | 9.75B | 8.78B | 10.17B | 9.67B | 9.13B | 7.38B | 6.77B | 6.08B | 5.05B | 4.57B | 3.94B | 2.86B | 2.4B | 1.96B | 1.54B | 1.22B | 1.07B |
| OpEx % of Revenue | - | 18.28% | 18.42% | 18.48% | 17.53% | 16.62% | 17.31% | 18.42% | 18.8% | 19.06% | 19.25% | 19.77% | 18.83% | 20.33% | 23.36% | 19.32% | 20.22% | 19.47% | 20.28% | 18.45% | 18.84% | 19.72% | 18.42% | 18.61% | 18.79% | 16.16% | 15.81% | 15.72% | 15.3% | 14.56% | 13.81% |
| Selling, General & Admin | 7.74B | 7.62B | 7.65B | 7.82B | 7.88B | 8.54B | 7.93B | 8B | 8.02B | 8.02B | 7.55B | 7.62B | 7.59B | 8.11B | 9.5B | 8.76B | 10.03B | 9.62B | 8.98B | 7.38B | 6.77B | 6.08B | 5.05B | 4.57B | 3.94B | 2.86B | 2.4B | 1.85B | 1.46B | 1.15B | 1.01B |
| SG&A % of Revenue | - | 18.28% | 18.42% | 17.99% | 17.03% | 16.5% | 16.77% | 18.33% | 18.69% | 19.03% | 19.15% | 19.27% | 18.82% | 19.96% | 22.77% | 19.26% | 19.95% | 19.36% | 19.96% | 18.45% | 18.84% | 19.72% | 18.42% | 18.61% | 18.79% | 16.16% | 15.81% | 14.84% | 14.52% | 13.7% | 12.94% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | -1000K | 0 | 0 | 214M | 233M | 59M | 254M | 41M | 46M | 10M | 39M | 198M | 5M | 149M | 0 | 29M | 138M | 52M | 144M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 109.54M | 78.37M | 71.58M | 67.3M |
| Operating Income | 1.84B | 1.75B | 1.73B | 1.57B | 1.79B | 3B | 2.39B | 2.01B | 1.9B | 1.84B | 1.85B | 1.38B | 1.45B | 1.14B | 1.27B | 2.2B | 2.37B | 2.37B | 1.87B | 2.16B | 2B | 1.64B | 1.44B | 1.3B | 1.01B | 908M | 611M | 539.26M | 351.24M | 166.41M | 53.2M |
| Operating Margin % | 4.36% | 4.2% | 4.18% | 3.62% | 3.88% | 5.79% | 5.06% | 4.6% | 4.43% | 4.37% | 4.71% | 3.48% | 3.59% | 2.82% | 3.05% | 4.84% | 4.72% | 4.77% | 4.15% | 5.4% | 5.56% | 5.33% | 5.26% | 5.31% | 4.82% | 5.13% | 4.02% | 4.32% | 3.49% | 1.99% | 0.68% |
| Operating Income Growth % | - | 0.92% | 10.17% | -12.31% | -40.11% | 25.35% | 19.01% | 5.74% | 3.09% | -0.59% | 34.84% | -5.17% | 26.75% | -10.22% | -42.08% | -7.33% | 0.25% | 26.63% | -13.47% | 8.1% | 21.59% | 14.01% | 10.58% | 29.11% | 11.23% | 48.61% | 13.3% | 53.53% | 111.07% | 212.8% | -56.57% |
| EBITDA | 2.64B | 2.58B | 2.6B | 2.5B | 2.71B | 3.87B | 3.23B | 2.82B | 2.67B | 2.53B | 2.51B | 2.03B | 2.11B | 1.86B | 2.11B | 3.15B | 3.35B | 3.29B | 2.66B | 2.74B | 2.51B | 2.1B | 1.9B | 1.69B | 1.32B | 1.22B | 778.37M | 648.8M | 429.64M | 234.71M | 120M |
| EBITDA Margin % | 6.25% | 6.19% | 6.26% | 5.75% | 5.86% | 7.47% | 6.83% | 6.46% | 6.23% | 5.99% | 6.37% | 5.14% | 5.22% | 4.58% | 5.05% | 6.92% | 6.67% | 6.63% | 5.92% | 6.85% | 6.98% | 6.81% | 6.93% | 6.88% | 6.3% | 6.87% | 5.12% | 5.19% | 4.26% | 2.81% | 1.54% |
| EBITDA Growth % | 24.92% | -0.73% | 4.12% | -7.96% | -29.82% | 19.69% | 14.5% | 5.66% | 5.7% | 0.72% | 23.43% | -3.51% | 13.23% | -11.69% | -33.03% | -6.18% | 1.76% | 23.7% | -2.85% | 9.29% | 19.43% | 10.47% | 12.55% | 27.95% | 8.46% | 56.35% | 19.97% | 51.01% | 83.05% | 95.59% | -32.36% |
| D&A (Non-Cash Add-back) | 798M | 831M | 866M | 923M | 918M | 869M | 839M | 812M | 770M | 683M | 654M | 657M | 656M | 716M | 832M | 945M | 978M | 926M | 793M | 580M | 509M | 456M | 459M | 385M | 310M | 309M | 167.37M | 109.54M | 78.4M | 68.3M | 66.8M |
| EBIT | 1.78B | 1.45B | 1.35B | 1.67B | 1.82B | 3.05B | 2.43B | 2.06B | 1.96B | 1.89B | 1.89B | 1.39B | 1.48B | 1.18B | -74M | 2.28B | 2.42B | 2.42B | 1.79B | 2.16B | 2B | 1.64B | 1.44B | 1.3B | 1.01B | 908M | 611M | 539.26M | 351.24M | 166.41M | 53.2M |
| Net Interest Income | -25M | -47M | -51M | -52M | -35M | -25M | -52M | -64M | -73M | -75M | -72M | -80M | -90M | -100M | -79M | -97M | -36M | -40M | -59M | 67M | 111M | 77M | 1M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 20M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 33M | 37M | 51M | 54M | 35M | 129M | 142M | 107M | 45M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 45M | 47M | 51M | 52M | 35M | 25M | 52M | 64M | 73M | 75M | 72M | 80M | 90M | 100M | 112M | 134M | 87M | 94M | 94M | 62M | 31M | 30M | 44M | 8M | 0 | 0 | 37M | 23M | 0 | 33M | 0 |
| Other Income/Expense | -100M | -344M | -435M | 47M | -7M | 31M | -14M | -16M | -12M | -26M | -38M | -65M | -63M | -61M | -1.27B | -1.16B | -43M | -93M | -314M | 67M | 131M | 77M | 1M | -8M | 4M | -1M | 37.17M | 23.31M | 400K | -33.01M | -50.4M |
| Pretax Income | 1.74B | 1.41B | 1.3B | 1.62B | 1.79B | 3.03B | 2.38B | 1.99B | 1.89B | 1.82B | 1.82B | 1.31B | 1.39B | 1.09B | 4.36M | 1.04B | 2.08B | 2.19B | 1.7B | 2.23B | 2.13B | 1.72B | 1.44B | 1.3B | 1.01B | 936M | 641.48M | 562.57M | 364.9M | 153.9M | 2.8M |
| Pretax Margin % | 4.12% | 3.37% | 3.13% | 3.73% | 3.86% | 5.85% | 5.03% | 4.57% | 4.4% | 4.31% | 4.61% | 3.31% | 3.44% | 2.68% | 0.01% | 2.29% | 4.13% | 4.42% | 3.78% | 5.57% | 5.93% | 5.58% | 5.26% | 5.28% | 4.84% | 5.28% | 4.22% | 4.5% | 3.62% | 1.84% | 0.04% |
| Income Tax | 468M | 337M | 372M | 381M | 370M | 574M | 579M | 452M | 424M | 818M | 609M | 503M | 141M | 398M | 286.91M | 709M | 714M | 802M | 674M | 815M | 752M | 581M | 509M | 496M | 392M | 366M | 245.64M | 215.5M | 140.5M | 59.4M | 1.1M |
| Effective Tax Rate % | 26.91% | 23.97% | 28.64% | 23.5% | 20.69% | 18.96% | 24.36% | 22.68% | 22.46% | 45.02% | 33.54% | 38.4% | 10.17% | 36.61% | 6575% | 67.98% | 34.36% | 36.54% | 39.65% | 36.58% | 35.31% | 33.76% | 35.27% | 38.27% | 38.66% | 39.1% | 38.29% | 38.31% | 38.5% | 38.6% | 39.29% |
| Net Income | 1.27B | 1.07B | 927M | 1.24B | 1.42B | 2.45B | 1.8B | 1.54B | 1.46B | 1B | 1.23B | 897M | 1.23B | 532M | -282.55M | -1.23B | 1.28B | 1.32B | 1B | 1.41B | 1.38B | 1.14B | 984M | 705M | 99M | 570M | 395.84M | 347.07M | 224.4M | 94.5M | 1.7M |
| Net Margin % | 3.01% | 2.56% | 2.23% | 2.86% | 3.06% | 4.74% | 3.8% | 3.53% | 3.41% | 2.37% | 3.12% | 2.27% | 3.06% | 1.31% | -0.68% | -2.71% | 2.54% | 2.65% | 2.23% | 3.52% | 3.83% | 3.7% | 3.59% | 2.87% | 0.47% | 3.22% | 2.61% | 2.78% | 2.23% | 1.13% | 0.02% |
| Net Income Growth % | 63.5% | 15.32% | -25.3% | -12.54% | -42.18% | 36.48% | 16.68% | 5.26% | 46.4% | -18.57% | 36.9% | -27.25% | 131.77% | 288.29% | 77.05% | -196.4% | -3.04% | 31.31% | -28.71% | 2.18% | 20.79% | 15.85% | 39.57% | 612.12% | -82.63% | 44% | 14.05% | 54.67% | 137.46% | 5458.82% | -96.46% |
| Net Income (Continuing) | 1.27B | 1.07B | 927M | 1.24B | 1.42B | 2.45B | 1.8B | 1.54B | 1.46B | 999M | 1.21B | 807M | 1.25B | 695M | -417M | 1.42B | 1.55B | 1.5B | 1.03B | 1.41B | 1.38B | 1.14B | 934M | 800M | 622M | 570M | 401M | 347.07M | 216.28M | 81.94M | 1.7M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1M | 21M | 90M | 0 | 0 | 2M | -1.4B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 5M | 3M | 654M | 621M | 690M | 644M | 513M | 40M | 35M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 229.9M | 230M |
| EPS (Diluted) | 5.98 | 5.04 | 4.28 | 5.68 | 6.29 | 9.84 | 6.84 | 5.75 | 5.20 | 3.26 | 3.81 | 2.56 | 3.49 | 1.53 | -0.83 | -3.36 | 3.08 | 3.10 | 2.39 | 3.12 | 2.79 | 2.27 | 1.96 | 1.41 | 0.21 | 1.18 | 0.83 | 0.73 | 0.46 | 0.23 | 0.00 |
| EPS Growth % | 65.56% | 17.76% | -24.65% | -9.7% | -36.08% | 43.86% | 18.96% | 10.58% | 59.51% | -14.44% | 48.83% | -26.65% | 128.1% | 284.34% | 75.3% | -209.09% | -0.65% | 29.71% | -23.4% | 11.83% | 22.91% | 15.82% | 39.01% | 571.43% | -82.2% | 42.17% | 13.7% | 58.7% | 100% | - | -96.33% |
| EPS (Basic) | - | 5.06 | 4.31 | 5.70 | 6.31 | 9.94 | 6.93 | 5.82 | 5.30 | 3.33 | 3.86 | 2.59 | 3.53 | 1.56 | -0.83 | -3.36 | 3.14 | 3.16 | 2.43 | 3.20 | 2.86 | 2.33 | 2.01 | 1.45 | 0.21 | 1.19 | 0.85 | 0.76 | 0.48 | 0.24 | 0.00 |
| Diluted Shares Outstanding | 212.7M | 212.1M | 216.6M | 218.5M | 225.7M | 249.3M | 263M | 268.1M | 281.4M | 307.1M | 322.6M | 350.7M | 353.6M | 347.6M | 338.6M | 366.3M | 416.5M | 427.5M | 422.9M | 452.9M | 496.2M | 504.8M | 502.04M | 500.8M | 495.8M | 483.05M | 479.03M | 477.83M | 472.04M | 450.56M | 382.11M |
| Basic Shares Outstanding | 211.3M | 211M | 215.2M | 217.7M | 224.8M | 246.8M | 259.6M | 264.9M | 276.4M | 300.4M | 318.5M | 346.5M | 349.5M | 342.1M | 338.6M | 366.3M | 406.1M | 416.8M | 412.5M | 439.9M | 482.1M | 490.3M | 488.9M | 485M | 481.41M | 472.25M | 463.66M | 458.98M | 447.72M | 394.69M | 382.11M |
| Dividend Payout Ratio | - | 74.93% | 87.06% | 64.54% | 55.6% | 28.04% | 31.59% | 34.2% | 33.95% | 40.9% | 41.12% | 55.63% | 20.36% | 43.8% | - | - | 18.56% | 17.77% | 22.23% | 14.5% | 12.64% | 13.25% | 13.92% | 18.44% | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying BBY stock.
For fiscal year 2026, Best Buy Co., Inc. (BBY) reported total revenue of $41.69B. This represents a 436.5% increase compared to $7.77B in 1997.
Best Buy Co., Inc. (BBY) is profitable, generating $1.07B in net income for the fiscal year ending 2026 with a net profit margin of 2.6%.
Best Buy Co., Inc. (BBY) reported an operating income of $1.75B, resulting in an operating profit margin of 4.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Best Buy Co., Inc. (BBY) generated $9.37B in gross profit for the year, representing a gross profit margin of 22.5%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Leverage amplifies macro sensitivity
Metrics are mathematically derived from official filings.
Growth Stabilizes After Prior Contraction
After a period of year-over-year revenue declines, Best Buy's top line has stabilized, with recent quarters showing modest positive growth of 3.6% and 1.9% in 2027Q2 and 2027Q1, respectively, suggesting a potential inflection from the prior negative trend.
The shift from consistent negative growth in 2025 to low-single-digit positive growth in 2027 indicates the business may have found a floor, potentially driven by product cycles or improved execution. However, the growth remains modest and is not yet robust enough to signal a strong cyclical upturn, especially given the significant seasonality where the holiday quarter (Q4) often masks underlying trends. Investors should monitor whether this stabilization is durable or merely a pause before further softness.
Gross Margin Resilience Amidst Structural Limits
Best Buy's gross margin has shown resilience, recovering to 23.9% in 2027Q2 from a low of 20.9% in the seasonal Q4 periods, yet it remains structurally constrained below peers like Target (27.9%) due to the low-margin nature of consumer electronics resale.
The consistent gross margin in the 23-24% range for non-holiday quarters suggests effective pricing and cost management within a challenging category. However, the significant compression during Q4 (to 20.9%) highlights the intense promotional environment required to drive holiday volume, which appears to be a permanent feature of the business model. This structural ceiling limits overall profitability and makes the company highly sensitive to any shifts in product mix toward lower-margin categories.
Operating Leverage Demonstrated in Recent Quarters
Operating income has scaled more efficiently than gross profit in recent periods, with operating margin expanding to 4.3% in 2027Q2 from 1.6% in 2025Q4, indicating improved SG&A leverage as revenue growth has turned positive.
The improvement in operating margin from the 2025 trough suggests management has successfully controlled fixed costs, particularly SG&A, as the top line stabilized. This operating leverage is critical for a low-margin business, as even small improvements in expense control can meaningfully impact profitability. However, the current 4.3% operating margin is still modest, and sustaining this leverage will depend on maintaining revenue momentum without a return to heavy promotional spending.
SG&A Discipline Underpins Margin Recovery
SG&A expenses have been held relatively flat as a percentage of revenue, declining from 23.9% in 2025Q2 to 19.4% in 2027Q2, which has been the primary driver of the recent operating margin expansion.
The reduction in SG&A as a percentage of sales indicates disciplined cost management, likely through labor optimization and overhead controls, which is essential given the company's high fixed-cost retail footprint. This discipline has allowed the company to convert modest revenue growth into stronger operating income growth. The key risk is whether further cost-cutting could eventually impair the service-based model (Geek Squad) that differentiates Best Buy from pure-play e-commerce competitors.
Leverage and Margin Fragility in a Downturn
The company's Debt/Equity ratio of 1.39, combined with a net margin of just 2.56% and heavy reliance on cyclical consumer spending, suggests that earnings could deteriorate sharply if revenue growth stalls or a recession impacts discretionary tech purchases.
While recent quarters show improvement, the income statement reveals a business with minimal margin for error. A return to the negative revenue growth seen in 2025 would quickly pressure the thin operating margin, and the elevated leverage could amplify the impact on net income through higher interest expenses. The Q4 2025 results, where a 4.8% revenue decline led to a 74.5% EPS drop, serve as a stark reminder of this vulnerability. Short-sellers would focus on this fragility, arguing the current stability is cyclical, not structural.