UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
| (Mark One) | |||||
| x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||||
For the quarterly period ended November 1, 2025
OR
| o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||||
For the transition period from to
Commission File Number: 1-9595
BEST BUY CO., INC.
(Exact name of registrant as specified in its charter)
| Minnesota | 41-0907483 | |||||||
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||
7601 Penn Avenue South Richfield, Minnesota | 55423 | |||||||
| (Address of principal executive offices) | (Zip Code) | |||||||
(612) 291-1000
(Registrant’s telephone number, including area code)
N/A
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol | Name of exchange on which registered | ||||||
| Common Stock, $0.10 par value per share | BBY | New York Stock Exchange | ||||||
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
| Large Accelerated Filer | x | Accelerated Filer | o | Non-accelerated Filer | o | ||||||||||||||||||||||||||||||
| Smaller Reporting Company | o | Emerging Growth Company | o | ||||||||||||||||||||||||||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No x
The registrant had 209,535,103 shares of common stock outstanding as of December 3, 2025.
BEST BUY CO., INC.
FORM 10-Q FOR THE QUARTER ENDED NOVEMBER 1, 2025
TABLE OF CONTENTS
WEBSITE AND SOCIAL MEDIA DISCLOSURE
We disclose information to the public concerning Best Buy, Best Buy’s products, content and services and other items through our websites in order to achieve broad, non-exclusionary distribution of information to the public. Some of the information distributed through this channel may be considered material information. Investors and others are encouraged to review the information we make public in the locations below.* This list may be updated from time to time.
•For information concerning Best Buy and its products, content and services, please visit: https://bestbuy.com.
•For information provided to the investment community, including news releases, events and presentations, and filings with the SEC, please visit: https://investors.bestbuy.com.
•For the latest information from Best Buy, including press releases, please visit: https://corporate.bestbuy.com/archive/.
* These corporate websites, and the contents thereof, are not incorporated by reference into this Quarterly Report on Form 10-Q nor deemed filed with the SEC.
2
PART I — FINANCIAL INFORMATION
Item 1. Financial Statements
Condensed Consolidated Balance Sheets
$ in millions, except per share amounts (unaudited)
| November 1, 2025 | February 1, 2025 | November 2, 2024 | |||||||||||||||
| Assets | |||||||||||||||||
| Current assets | |||||||||||||||||
| Cash and cash equivalents | $ | 923 | $ | 1,578 | $ | 643 | |||||||||||
| Receivables, net | 1,017 | 1,044 | 932 | ||||||||||||||
| Merchandise inventories | 7,993 | 5,085 | 7,806 | ||||||||||||||
| Other current assets | 640 | 517 | 574 | ||||||||||||||
| Total current assets | 10,573 | 8,224 | 9,955 | ||||||||||||||
| Property and equipment, net | 2,037 | 2,122 | 2,196 | ||||||||||||||
| Operating lease assets | 2,838 | 2,833 | 2,842 | ||||||||||||||
| Goodwill | 790 | 908 | 1,383 | ||||||||||||||
| Other assets | 548 | 695 | 642 | ||||||||||||||
| Total assets | $ | 16,786 | $ | 14,782 | $ | 17,018 | |||||||||||
| Liabilities and equity | |||||||||||||||||
| Current liabilities | |||||||||||||||||
| Accounts payable | $ | 7,319 | $ | 4,980 | $ | 7,145 | |||||||||||
| Unredeemed gift card liabilities | 231 | 253 | 246 | ||||||||||||||
| Deferred revenue | 853 | 951 | 878 | ||||||||||||||
| Accrued compensation and related expenses | 392 | 464 | 361 | ||||||||||||||
| Accrued liabilities | 689 | 741 | 690 | ||||||||||||||
| Current portion of operating lease liabilities | 619 | 617 | 616 | ||||||||||||||
| Current portion of long-term debt | 10 | 10 | 12 | ||||||||||||||
| Total current liabilities | 10,113 | 8,016 | 9,948 | ||||||||||||||
| Long-term operating lease liabilities | 2,309 | 2,282 | 2,293 | ||||||||||||||
| Long-term debt | 1,155 | 1,144 | 1,144 | ||||||||||||||
| Long-term liabilities | 556 | 532 | 551 | ||||||||||||||
| Contingencies (Note 10) | |||||||||||||||||
| Equity | |||||||||||||||||
| Best Buy Co., Inc. Shareholders' Equity | |||||||||||||||||
Preferred stock, $1.00 par value: Authorized - 400,000 shares; Issued and outstanding - none | - | - | - | ||||||||||||||
Common stock, $0.10 par value: Authorized - 1.0 billion shares; Issued and outstanding - 210.0 million, 211.4 million and 213.8 million shares, respectively | 22 | 22 | 22 | ||||||||||||||
| Additional paid-in capital | 16 | - | - | ||||||||||||||
| Retained earnings | 2,306 | 2,486 | 2,751 | ||||||||||||||
| Accumulated other comprehensive income | 309 | 300 | 309 | ||||||||||||||
| Total equity | 2,653 | 2,808 | 3,082 | ||||||||||||||
| Total liabilities and equity | $ | 16,786 | $ | 14,782 | $ | 17,018 | |||||||||||
NOTE: The Consolidated Balance Sheet as of February 1, 2025, has been condensed from the audited consolidated financial statements.
See Notes to Condensed Consolidated Financial Statements.
3
Condensed Consolidated Statements of Earnings
$ 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 | ||||||||||||||||||||
| Revenue | $ | 9,672 | $ | 9,445 | $ | 27,877 | $ | 27,580 | |||||||||||||||
| Cost of sales | 7,424 | 7,228 | 21,386 | 21,113 | |||||||||||||||||||
| Gross profit | 2,248 | 2,217 | 6,491 | 6,467 | |||||||||||||||||||
| Selling, general and administrative expenses | 1,884 | 1,871 | 5,434 | 5,418 | |||||||||||||||||||
| Restructuring charges | (5) | (4) | 218 | 4 | |||||||||||||||||||
| Goodwill and intangible asset impairments | 171 | - | 171 | - | |||||||||||||||||||
| Operating income | 198 | 350 | 668 | 1,045 | |||||||||||||||||||
| Other income (expense): | |||||||||||||||||||||||
| Loss on disposal of subsidiaries | - | - | (4) | - | |||||||||||||||||||
| Investment income and other | 19 | 19 | 52 | 65 | |||||||||||||||||||
| Interest expense | (12) | (13) | (36) | (38) | |||||||||||||||||||
| Earnings before income tax expense and equity in income (loss) of affiliates | 205 | 356 | 680 | 1,072 | |||||||||||||||||||
| Income tax expense | 64 | 85 | 151 | 266 | |||||||||||||||||||
| Equity in income (loss) of affiliates | (1) | 2 | (1) | 4 | |||||||||||||||||||
| Net earnings | $ | 140 | $ | 273 | $ | 528 | $ | 810 | |||||||||||||||
| Basic earnings per share | $ | 0.67 | $ | 1.27 | $ | 2.50 | $ | 3.76 | |||||||||||||||
| Diluted earnings per share | $ | 0.66 | $ | 1.26 | $ | 2.48 | $ | 3.73 | |||||||||||||||
| Weighted-average common shares outstanding: | |||||||||||||||||||||||
| Basic | 210.7 | 214.8 | 211.4 | 215.7 | |||||||||||||||||||
| Diluted | 212.1 | 216.7 | 212.7 | 217.2 | |||||||||||||||||||
See Notes to Condensed Consolidated Financial Statements.
4
Condensed Consolidated Statements of Comprehensive Income
$ in millions (unaudited)
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| November 1, 2025 | November 2, 2024 | November 1, 2025 | November 2, 2024 | ||||||||||||||||||||
| Net earnings | $ | 140 | $ | 273 | $ | 528 | $ | 810 | |||||||||||||||
| Foreign currency translation adjustments, net of tax | (4) | (1) | 9 | (8) | |||||||||||||||||||
| Comprehensive income | $ | 136 | $ | 272 | $ | 537 | $ | 802 | |||||||||||||||
See Notes to Condensed Consolidated Financial Statements.
5
Condensed Consolidated Statements of Cash Flows
$ in millions (unaudited)
| Nine Months Ended | |||||||||||
| November 1, 2025 | November 2, 2024 | ||||||||||
| Operating activities | |||||||||||
| Net earnings | $ | 528 | $ | 810 | |||||||
| Adjustments to reconcile net earnings to total cash provided by operating activities: | |||||||||||
| Depreciation and amortization | 628 | 650 | |||||||||
| Restructuring charges | 218 | 4 | |||||||||
| Goodwill and intangible asset impairments | 171 | - | |||||||||
| Stock-based compensation | 106 | 108 | |||||||||
| Deferred income taxes | 37 | 1 | |||||||||
| Loss on disposal of subsidiaries | 4 | - | |||||||||
| Long-lived asset impairments | 21 | 2 | |||||||||
| Other, net | 6 | - | |||||||||
| Changes in operating assets and liabilities: | |||||||||||
| Receivables | 23 | 4 | |||||||||
| Merchandise inventories | (2,903) | (2,869) | |||||||||
| Other assets | 3 | (16) | |||||||||
| Accounts payable | 2,315 | 2,483 | |||||||||
| Income taxes | (133) | (219) | |||||||||
| Other liabilities | (340) | (397) | |||||||||
| Total cash provided by operating activities | 684 | 561 | |||||||||
| Investing activities | |||||||||||
| Additions to property and equipment | (529) | (528) | |||||||||
| Disposal of subsidiary | (27) | - | |||||||||
| Other, net | 1 | 6 | |||||||||
| Total cash used in investing activities | (555) | (522) | |||||||||
| Financing activities | |||||||||||
| Repurchase of common stock | (200) | (285) | |||||||||
| Dividends paid | (602) | (607) | |||||||||
| Repayments of debt | (10) | (13) | |||||||||
| Other, net | 4 | 13 | |||||||||
| Total cash used in financing activities | (808) | (892) | |||||||||
| Effect of exchange rate changes on cash and cash equivalents | 5 | (2) | |||||||||
| Decrease in cash, cash equivalents and restricted cash | (674) | (855) | |||||||||
| Cash, cash equivalents and restricted cash at beginning of period | 1,868 | 1,793 | |||||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 1,194 | $ | 938 | |||||||
See Notes to Condensed Consolidated Financial Statements.
6
Condensed Consolidated Statements of Changes in Shareholders' Equity
$ and shares in millions, except per share amounts (unaudited)
| 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 | |||||||||||||||||||||||||||||
| Other comprehensive income: | |||||||||||||||||||||||||||||||||||
| Foreign currency translation adjustments, net of tax | - | - | - | - | 9 | 9 | |||||||||||||||||||||||||||||
| Stock-based compensation | - | - | 106 | - | - | 106 | |||||||||||||||||||||||||||||
| Issuance of common stock | 1.6 | - | 5 | - | - | 5 | |||||||||||||||||||||||||||||
Common stock dividends, $2.85 per share | - | - | 14 | (616) | - | (602) | |||||||||||||||||||||||||||||
| 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 February 3, 2024 | 215.4 | $ | 22 | $ | 31 | $ | 2,683 | $ | 317 | $ | 3,053 | ||||||||||||||||||||||||
| Net earnings, nine months ended November 2, 2024 | - | - | - | 810 | - | 810 | |||||||||||||||||||||||||||||
| Other comprehensive loss: | |||||||||||||||||||||||||||||||||||
| Foreign currency translation adjustments, net of tax | - | - | - | - | (8) | (8) | |||||||||||||||||||||||||||||
| Stock-based compensation | - | - | 108 | - | - | 108 | |||||||||||||||||||||||||||||
| Issuance of common stock | 1.6 | - | 11 | - | - | 11 | |||||||||||||||||||||||||||||
Common stock dividends, $2.82 per share | - | - | 13 | (620) | - | (607) | |||||||||||||||||||||||||||||
| Repurchase of common stock | (3.2) | - | (163) | (122) | - | (285) | |||||||||||||||||||||||||||||
| Balances at November 2, 2024 | 213.8 | $ | 22 | $ | - | $ | 2,751 | $ | 309 | $ | 3,082 | ||||||||||||||||||||||||
See Notes to Condensed Consolidated Financial Statements.
7
Notes to Condensed Consolidated Financial Statements
(unaudited)
1. Basis of Presentation
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. and, as applicable, its consolidated subsidiaries.
In the opinion of management, the accompanying condensed consolidated financial statements contain all adjustments necessary for a fair presentation as prescribed by accounting principles generally accepted in the U.S. (“GAAP”). All adjustments were comprised of normal recurring adjustments, except as noted in these Notes to Condensed Consolidated Financial Statements.
A large proportion of our revenue and earnings is generated in the fiscal fourth quarter, which includes the majority of the holiday shopping season. 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. 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): Disaggregation of Income Statement Expenses, which requires disclosure of specific expense categories in the notes to financial statements. The amendments are effective for fiscal years beginning after December 15, 2026, and for interim periods within fiscal years beginning after December 15, 2027. 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 $793 million as of November 1, 2025, February 1, 2025, and November 2, 2024, respectively.
Total Cash, Cash Equivalents and Restricted Cash
Cash, cash equivalents and restricted cash reported on our Condensed Consolidated Balance Sheets are reconciled to the totals shown on our Condensed Consolidated Statements of Cash Flows as follows ($ in millions):
| November 1, 2025 | February 1, 2025 | November 2, 2024 | |||||||||||||||
| Cash and cash equivalents | $ | 923 | $ | 1,578 | $ | 643 | |||||||||||
| Restricted cash included in Other current assets | 271 | 290 | 295 | ||||||||||||||
| Total cash, cash equivalents and restricted cash | $ | 1,194 | $ | 1,868 | $ | 938 | |||||||||||
8
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.
2. 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 | ||||||||||||||||||||
| Fiscal 2026 Labor and Store Optimization Initiative | $ | (1) | $ | — | $ | 121 | $ | — | |||||||||||||||
| Best Buy Health Optimization and China Sourcing Initiative | (3) | — | 102 | — | |||||||||||||||||||
| Fiscal 2024 Restructuring Initiative | (1) | (4) | (5) | 6 | |||||||||||||||||||
| Fiscal 2023 Resource Optimization Initiative | — | — | — | (2) | |||||||||||||||||||
| Total | $ | (5) | $ | (4) | $ | 218 | $ | 4 | |||||||||||||||
Fiscal 2026 Labor and Store Optimization Initiative
In the second quarter of fiscal 2026, we commenced a restructuring initiative intended to align field resources with changing customer behaviors, close select non-traditional store locations and redirect corporate resources for better alignment with our strategy. 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 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 | ||||||||||||||||||||||||||||||||||
| Domestic | International | Total | Domestic | International | Total | ||||||||||||||||||||||||||||||
| Termination benefits | $ | (1) | $ | — | $ | (1) | $ | 77 | $ | 3 | $ | 80 | |||||||||||||||||||||||
Asset impairments(1) | — | — | — | 41 | — | 41 | |||||||||||||||||||||||||||||
| Total | $ | (1) | $ | — | $ | (1) | $ | 118 | $ | 3 | $ | 121 | |||||||||||||||||||||||
(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.
Restructuring accrual activity related to this initiative was as follows ($ in millions):
| Termination Benefits | |||||||||||||||||
| Domestic | International | Total | |||||||||||||||
| Balances at February 1, 2025 | $ | - | $ | - | $ | - | |||||||||||
| Charges | 78 | 3 | 81 | ||||||||||||||
| Cash payments | (17) | - | (17) | ||||||||||||||
Adjustments(1) | (1) | - | (1) | ||||||||||||||
| Balances at November 1, 2025 | $ | 60 | $ | 3 | $ | 63 | |||||||||||
(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 $63 million as of November 1, 2025, reflect expected future cash payments primarily during fiscal 2027.
9
Best Buy Health Optimization and China Sourcing Initiative
In the first quarter of fiscal 2026, we commenced a restructuring initiative primarily focused on optimizing our Best Buy Health business by taking actions to maximize value and improve profitability in light of its performance against our original forecasting. These actions included the exit of a component of our Best Buy Health business that was finalized during the second quarter of fiscal 2026. In addition, we also made significant changes to reduce our exposure to tariffs, particularly in China. We currently do not expect to incur material future restructuring charges related to this initiative.
All charges incurred related to this initiative were from continuing operations in our Domestic segment and presented within Restructuring charges on our Condensed Consolidated Statements of Earnings. The composition of restructuring charges incurred related to this initiative were as follows ($ in millions):
| Three Months Ended | Nine Months Ended | ||||||||||
| November 1, 2025 | November 1, 2025 | ||||||||||
Asset impairments and other costs(1) | $ | - | $ | 70 | |||||||
| 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 $15 million as of November 1, 2025, reflect expected future cash payments primarily during fiscal 2026.
Fiscal 2024 Restructuring Initiative
During the fourth quarter of fiscal 2024, we commenced an enterprise-wide restructuring initiative intended to align field labor resources with where customers want to shop and to optimize the customer experience, redirect corporate resources for better alignment with our strategy and right-size resources to better align with our revenue outlook for fiscal 2025. We do not expect to incur material future restructuring charges related to this initiative.
All charges incurred related to this initiative were comprised of employee termination benefits from continuing operations and were presented within Restructuring charges on our Condensed Consolidated Statements of Earnings as follows ($ 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 | |||||||||||||||||||
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Restructuring accrual activity related to this initiative was as follows ($ in millions):
| Termination Benefits | |||||||||||||||||
| Domestic | International | Total | |||||||||||||||
| Balances at February 1, 2025 | $ | 80 | $ | 5 | $ | 85 | |||||||||||
| Cash payments | (21) | (3) | (24) | ||||||||||||||
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 $56 million as of November 1, 2025, reflect expected future cash payments primarily during fiscal 2027.
3. Goodwill and Intangible Assets
Goodwill
Goodwill balances by segment were as follows ($ 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 | ||||||||||||||||||||||||||||||
| Domestic | $ | 1,450 | $ | (660) | $ | 1,450 | $ | (542) | $ | 1,450 | $ | (67) | |||||||||||||||||||||||
| International | 608 | (608) | 608 | (608) | 608 | (608) | |||||||||||||||||||||||||||||
| Total | $ | 2,058 | $ | (1,268) | $ | 2,058 | $ | (1,150) | $ | 2,058 | $ | (675) | |||||||||||||||||||||||
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 (in years) | ||||||||||||||||||||||||||||||||||||||
Gross Carrying Amount(1) | Accumulated Amortization(1) | Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | ||||||||||||||||||||||||||||||||||||
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 $53 million of impairments related to Best Buy Health included in Goodwill and intangible asset impairments on our Condensed Consolidated Statements of Earnings.
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Amortization expense, included in Selling, general and administrative expenses ("SG&A") on our Condensed Consolidated Statements of Earnings, was as follows ($ 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 | ||||
4. 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
Financial assets and liabilities accounted for at fair value were as follows ($ in millions):
| Fair Value as of | |||||||||||||||||||||||||||||
Balance Sheet Location(1) | Fair Value Hierarchy | November 1, 2025 | February 1, 2025 | November 2, 2024 | |||||||||||||||||||||||||
| Assets | |||||||||||||||||||||||||||||
Money market funds(2) | Cash and cash equivalents | Level 1 | $ | 29 | $ | 439 | $ | 40 | |||||||||||||||||||||
Time deposits(3) | Cash and cash equivalents | Level 2 | 134 | 150 | 5 | ||||||||||||||||||||||||
Money market funds(2) | Other current assets | Level 1 | 122 | 140 | 139 | ||||||||||||||||||||||||
Time deposits(3) | Other current assets | Level 2 | 40 | 50 | 50 | ||||||||||||||||||||||||
Marketable securities that fund deferred compensation(4) | Other assets | Level 1 | 41 | 39 | 38 | ||||||||||||||||||||||||
| Liabilities | |||||||||||||||||||||||||||||
Interest rate swap derivative instruments(5) | Long-term liabilities | Level 2 | 7 | 14 | 16 | ||||||||||||||||||||||||
(1)Balance sheet location is determined by the length to maturity at date of purchase and whether the assets are restricted for particular use.
(2)Valued at quoted market prices in active markets at period end.
(3)Valued at face value plus accrued interest at period end, which approximates fair value.
(4)Valued using the performance of mutual funds that trade with sufficient frequency and volume to obtain pricing information on an ongoing basis.
(5)Valued using readily observable market inputs. These instruments are custom, over-the-counter contracts with various bank counterparties that are not traded on an active market. See Note 5, Derivative Instruments, for additional information.
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. 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 $21 million of long-lived asset impairments related to Best Buy Health, included in SG&A on our Condensed Consolidated Statements of Earnings. The remaining carrying value of net long-lived assets subject to impairment approximates fair value and was immaterial as of November 1, 2025.
All nonrecurring fair value remeasurements mentioned above were based on significant unobservable inputs (Level 3).
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Fair Value of Financial Instruments
The fair values of cash, certain restricted cash, receivables, accounts payable and other payables approximated their carrying values because of the short-term nature of these instruments. If these instruments were measured at fair value in the financial statements, they would be classified as Level 1 in the fair value hierarchy. Fair values for other investments held at cost are not readily available, but we estimate that the carrying values for these investments approximate their fair values.
Long-term debt is presented at carrying value on our Condensed Consolidated Balance Sheets. If our long-term debt were recorded at fair value, it would be classified as Level 2 in the fair value hierarchy. Long-term debt balances were as follows ($ in millions):
| November 1, 2025 | February 1, 2025 | November 2, 2024 | |||||||||||||||||||||||||||||||||
| Fair Value | Carrying Value | Fair Value | Carrying Value | Fair Value | Carrying Value | ||||||||||||||||||||||||||||||
Long-term debt(1) | $ | 1,076 | $ | 1,143 | $ | 1,031 | $ | 1,136 | $ | 1,028 | $ | 1,134 | |||||||||||||||||||||||
(1)Excludes debt discounts, issuance costs and finance lease obligations.
5. 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 | |||||||||||||||
| Derivatives designated as net investment hedges | $ | 119 | $ | 119 | $ | 119 | |||||||||||
| Derivatives designated as fair value hedges (interest rate swaps) | 500 | 500 | 500 | ||||||||||||||
| No hedge designation (foreign exchange contracts) | 75 | 42 | 129 | ||||||||||||||
| Total | $ | 694 | $ | 661 | $ | 748 | |||||||||||
Effects of our fair value hedges included in Interest expense on our Condensed Consolidated Statements of Earnings were as follows ($ in millions):
| Gain (Loss) Recognized | |||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| November 1, 2025 | November 2, 2024 | November 1, 2025 | November 2, 2024 | ||||||||||||||||||||
| Interest rate swaps | $ | (8) | $ | (14) | $ | 7 | $ | (5) | |||||||||||||||
| Adjustments to carrying value of long-term debt | 8 | 14 | (7) | 5 | |||||||||||||||||||
| Total | $ | - | $ | - | $ | - | $ | - | |||||||||||||||
6. Debt
Short-Term Debt
U.S. 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 $1.25 billion and expires in April 2030. There were no borrowings outstanding under the Five-Year Facility Agreement as of November 1, 2025, or the Previous Facility as of February 1, 2025, or November 2, 2024.
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Long-Term Debt
Long-term debt consisted of the following ($ in millions):
| November 1, 2025 | February 1, 2025 | November 2, 2024 | |||||||||||||||
Notes, 4.45%, due October 1, 2028 ("2028 Notes") | $ | 500 | $ | 500 | $ | 500 | |||||||||||
Notes, 1.95%, due October 1, 2030 ("2030 Notes") | 650 | 650 | 650 | ||||||||||||||
| Interest rate swap valuation adjustments | (7) | (14) | (16) | ||||||||||||||
| Subtotal | 1,143 | 1,136 | 1,134 | ||||||||||||||
| Debt discounts and issuance costs | (6) | (7) | (7) | ||||||||||||||
| Finance lease obligations | 28 | 25 | 29 | ||||||||||||||
| Total long-term debt | 1,165 | 1,154 | 1,156 | ||||||||||||||
| Less current portion | 10 | 10 | 12 | ||||||||||||||
| Total long-term debt, less current portion | $ | 1,155 | $ | 1,144 | $ | 1,144 | |||||||||||
Fair Value and Future Maturities
See Note 4, Fair Value Measurements, for the fair value of long-term debt. The 2028 Notes mature in fiscal 2029 and the 2030 Notes mature in fiscal 2031.
7. Revenue
We generate substantially all 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 | |||||||||||||||
Receivables, net(1) | $ | 605 | $ | 504 | $ | 471 | |||||||||||
| Short-term contract liabilities included in: | |||||||||||||||||
| Unredeemed gift card liabilities | 231 | 253 | 246 | ||||||||||||||
| Deferred revenue | 853 | 951 | 878 | ||||||||||||||
| Accrued liabilities | 67 | 50 | 58 | ||||||||||||||
| Long-term contract liabilities included in: | |||||||||||||||||
| Long-term liabilities | 209 | 229 | 237 | ||||||||||||||
(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 $1,054 million of revenue was recognized, respectively, that was included in the contract liabilities at the beginning of the respective periods.
Estimated revenue from our contract liability balances expected to be recognized in future periods if the performance of the contract is expected to have an initial duration of more than one year is as follows ($ in millions):
| Fiscal Year | Amount | ||||
| Remainder of fiscal 2026 | $ | 9 | |||
| Fiscal 2027 | 35 | ||||
| Fiscal 2028 | 31 | ||||
| Fiscal 2029 | 27 | ||||
| Fiscal 2030 | 27 | ||||
| Fiscal 2031 | 27 | ||||
| Thereafter | 89 | ||||
See Note 11, Segments, for information on our revenue by reportable segment and product category.
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8. 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 | ||||||||||||||||||||
| Numerator | |||||||||||||||||||||||
| Net earnings | $ | 140 | $ | 273 | $ | 528 | $ | 810 | |||||||||||||||
| Denominator | |||||||||||||||||||||||
| Weighted-average common shares outstanding | 210.7 | 214.8 | 211.4 | 215.7 | |||||||||||||||||||
| Dilutive effect of stock compensation plan awards | 1.4 | 1.9 | 1.3 | 1.5 | |||||||||||||||||||
| Weighted-average common shares outstanding, assuming dilution | 212.1 | 216.7 | 212.7 | 217.2 | |||||||||||||||||||
| Potential shares which were anti-dilutive and excluded from weighted-average share computations | - | - | 0.1 | - | |||||||||||||||||||
| Basic earnings per share | $ | 0.67 | $ | 1.27 | $ | 2.50 | $ | 3.76 | |||||||||||||||
| Diluted earnings per share | $ | 0.66 | $ | 1.26 | $ | 2.48 | $ | 3.73 | |||||||||||||||
9. Repurchase of Common Stock
On February 28, 2022, our Board of Directors approved a $5.0 billion share repurchase program. The program had $3.1 billion remaining available for repurchases as of November 1, 2025. There is no expiration date governing the period over which we can repurchase shares under this authorization.
Information regarding the shares we repurchased and retired was as follows ($ 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 | ||||||||||||||||||||
| Total cost of shares repurchased | $ | 34 | $ | 135 | $ | 201 | $ | 285 | |||||||||||||||
| Average price per share | $ | 74.03 | $ | 95.43 | $ | 67.28 | $ | 87.19 | |||||||||||||||
| Number of shares repurchased and retired | 0.5 | 1.4 | 3.0 | 3.2 | |||||||||||||||||||
10. Contingencies
We are involved in a number of legal proceedings. Where appropriate, we have made accruals with respect to these matters, which are reflected on our Condensed Consolidated Financial Statements. However, there are cases where liability is not probable or the amount cannot be reasonably estimated and, therefore, accruals have not been made. We provide disclosure of matters where we believe it is reasonably possible the impact may be material to our Condensed Consolidated Financial Statements.
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11. Segments
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 | ||||||||||||||||||||
| Domestic: | |||||||||||||||||||||||
| Computing and Mobile Phones | $ | 4,368 | $ | 4,065 | $ | 12,090 | $ | 11,445 | |||||||||||||||
| Consumer Electronics | 2,351 | 2,425 | 6,939 | 7,267 | |||||||||||||||||||
| Appliances | 965 | 1,057 | 3,040 | 3,324 | |||||||||||||||||||
| Entertainment | 543 | 479 | 1,673 | 1,497 | |||||||||||||||||||
| Services | 591 | 601 | 1,751 | 1,769 | |||||||||||||||||||
| Other | 60 | 70 | 210 | 221 | |||||||||||||||||||
| Total Domestic revenue | $ | 8,878 | $ | 8,697 | $ | 25,703 | $ | 25,523 | |||||||||||||||
| International: | |||||||||||||||||||||||
| Computing and Mobile Phones | $ | 420 | $ | 386 | $ | 1,090 | $ | 1,012 | |||||||||||||||
| Consumer Electronics | 202 | 194 | 573 | 553 | |||||||||||||||||||
| Appliances | 64 | 67 | 201 | 213 | |||||||||||||||||||
| Entertainment | 54 | 47 | 164 | 132 | |||||||||||||||||||
| Services | 47 | 47 | 123 | 124 | |||||||||||||||||||
| Other | 7 | 7 | 23 | 23 | |||||||||||||||||||
| Total International revenue | 794 | 748 | 2,174 | 2,057 | |||||||||||||||||||
| Total revenue | $ | 9,672 | $ | 9,445 | $ | 27,877 | $ | 27,580 | |||||||||||||||
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)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.
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| Nine Months Ended | |||||||||||||||||||||||||||||||||||
| November 1, 2025 | November 2, 2024 | ||||||||||||||||||||||||||||||||||
Domestic (1) | International | Total | Domestic (1) | International | Total | ||||||||||||||||||||||||||||||
| Revenue | $ | 25,703 | $ | 2,174 | $ | 27,877 | $ | 25,523 | $ | 2,057 | $ | 27,580 | |||||||||||||||||||||||
| Cost of sales | 19,695 | 1,691 | 21,386 | 19,530 | 1,583 | 21,113 | |||||||||||||||||||||||||||||
Adjusted SG&A (2) | 4,968 | 433 | 5,401 | 4,966 | 436 | 5,402 | |||||||||||||||||||||||||||||
| Adjusted operating income | $ | 1,040 | $ | 50 | 1,090 | $ | 1,027 | $ | 38 | 1,065 | |||||||||||||||||||||||||
| Restructuring charges | 218 | 4 | |||||||||||||||||||||||||||||||||
| Goodwill and intangible asset impairments | 171 | - | |||||||||||||||||||||||||||||||||
| Intangible asset amortization | 12 | 16 | |||||||||||||||||||||||||||||||||
| Long-lived asset impairment | 21 | - | |||||||||||||||||||||||||||||||||
| Operating income | 668 | 1,045 | |||||||||||||||||||||||||||||||||
| Other income (expense): | |||||||||||||||||||||||||||||||||||
| Loss on disposal of subsidiaries | (4) | - | |||||||||||||||||||||||||||||||||
| Investment income and other | 52 | 65 | |||||||||||||||||||||||||||||||||
| Interest expense | (36) | (38) | |||||||||||||||||||||||||||||||||
| Earnings before income tax expense and equity in income (loss) of affiliates | $ | 680 | $ | 1,072 | |||||||||||||||||||||||||||||||
(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 | ||||||||||||||||||||
| Capital expenditures | |||||||||||||||||||||||
| Domestic | $ | 158 | $ | 174 | $ | 469 | $ | 472 | |||||||||||||||
| International | 30 | 19 | 60 | 56 | |||||||||||||||||||
| Total capital expenditures | $ | 188 | $ | 193 | $ | 529 | $ | 528 | |||||||||||||||
| Depreciation and amortization | |||||||||||||||||||||||
| Domestic | $ | 196 | $ | 202 | $ | 598 | $ | 619 | |||||||||||||||
| International | 10 | 11 | 30 | 31 | |||||||||||||||||||
| Total depreciation and amortization | $ | 206 | $ | 213 | $ | 628 | $ | 650 | |||||||||||||||
Asset information by segment was as follows ($ in millions):
| November 1, 2025 | February 1, 2025 | November 2, 2024 | |||||||||||||||
| Domestic | $ | 15,219 | $ | 13,567 | $ | 15,551 | |||||||||||
| International | 1,567 | 1,215 | 1,467 | ||||||||||||||
| Total assets | $ | 16,786 | $ | 14,782 | $ | 17,018 | |||||||||||
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Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Unless the context otherwise requires, the use of the terms “Best Buy,” “we,” “us” and “our” refers to Best Buy Co., Inc. and its consolidated subsidiaries. Any references to our website addresses do not constitute incorporation by reference of the information contained on the websites.
Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) is intended to provide a reader of our financial statements with a narrative from the perspective of our management on our financial condition, results of operations, liquidity and certain other factors that may affect our future results. Unless otherwise noted, transactions and other factors significantly impacting our financial condition, results of operations and liquidity are discussed in order of magnitude. Our MD&A should be read in conjunction with our Annual Report on Form 10-K for the fiscal year ended February 1, 2025 (including the information presented therein under Risk Factors), as well as our other reports on Forms 10-Q and 8-K and other publicly available information. All amounts herein are unaudited.
Overview
We are driven by our purpose to enrich lives through technology and our vision to personalize and humanize technology solutions for every stage of life. We accomplish this by leveraging our combination of tech expertise and a human touch to meet our customers’ everyday needs, whether they come to us online, visit our stores or invite us into their homes.
We have two reportable segments: Domestic and International. The Domestic segment is comprised of our operations in all states, districts and territories of the U.S. and our Best Buy Health business. The International segment is comprised of all our operations in Canada.
Our fiscal year ends on the Saturday nearest the end of January. Our business, like that of many retailers, is seasonal. A large proportion of our revenue and earnings is generated in the fiscal fourth quarter, which includes the majority of the holiday shopping season.
Comparable Sales
Throughout this MD&A, we refer to comparable sales. Comparable sales is a metric used by management to evaluate the performance of our existing stores and digital offerings by measuring the change in net sales for a particular period over the comparable prior period of equivalent length.
Comparable sales includes revenue from stores operating for at least 14 full months; sales initiated on a website, app or virtual store; advertising revenue; credit card revenue; commercial sales; gift card breakage; marketplace commission revenue; and sales of merchandise to wholesalers and dealers. Revenue from acquisitions is included in comparable sales beginning with the first full quarter following the first anniversary of the date of the acquisition. Comparable sales excludes revenue from stores closed more than 14 days (including but not limited to relocated, remodeled, expanded and downsized stores, or stores impacted by natural disasters) until at least 14 full months after reopening; the impact of certain periodic warranty-related profit-share revenue; the effect of fluctuations in foreign currency exchange rates (applicable to our International segment only); and the impact of the 53rd week (applicable in 53-week fiscal years only). Comparable sales is based on our fiscal calendar and is not adjusted to align calendar weeks. All periods presented apply this methodology consistently.
Comparable online sales is a subset of comparable sales related to our digital offerings and includes sales initiated on a website, app or virtual store; advertising revenue and marketplace commission revenue.
Consistent with our comparable sales policy, revenue from Best Buy Express locations rebranded as a result of our previously announced collaboration with Bell Canada is excluded from our comparable sales calculation until locations have been operating for at least 14 full months.
We believe comparable sales is a meaningful supplemental metric for investors to evaluate revenue performance resulting from growth in existing stores and digital offerings versus the portion resulting from opening new stores or closing existing stores. The method of calculating comparable sales varies across the retail industry. As a result, our method of calculating comparable sales may not be the same as other retailers’ methods.
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Non-GAAP Financial Measures
This MD&A includes financial information prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”), as well as certain non-GAAP financial measures, such as consolidated adjusted operating income, consolidated adjusted operating income rate, consolidated adjusted effective tax rate and consolidated adjusted diluted earnings per share (“EPS”). We believe that non-GAAP financial measures, when reviewed in conjunction with GAAP financial measures, provide additional useful information for evaluating current period performance and assessing future performance. For these reasons, internal management reporting, including budgets, forecasts and financial targets used for short-term incentives are based on non-GAAP financial measures. Generally, our non-GAAP financial measures include adjustments for items such as restructuring charges, goodwill and acquired intangible asset impairments, certain long-lived asset impairments, price-fixing settlements, gains and losses on disposals of subsidiaries and certain investments, amortization of definite-lived intangible assets associated with acquisitions, certain acquisition-related costs and the tax effect of all such items. In addition, certain other items may be excluded from non-GAAP financial measures when we believe doing so provides greater clarity to management and our investors. We provide reconciliations of the most comparable financial measures presented in accordance with GAAP to presented non-GAAP financial measures that enable investors to understand the adjustments made in arriving at the non-GAAP financial measures and to evaluate performance using the same metrics as management. These non-GAAP financial measures should be considered in addition to, and not superior to or as a substitute for, GAAP financial measures. We strongly encourage investors and shareholders to review our financial statements and publicly filed reports in their entirety and not to rely on any single financial measure. Non-GAAP financial measures may be calculated differently from similarly titled measures used by other companies, thereby limiting their usefulness for comparative purposes.
In our discussions of the operating results of our consolidated business and our International segment, we sometimes refer to the impact of changes in foreign currency exchange rates or the impact of foreign currency exchange rate fluctuations, which are references to the differences between the foreign currency exchange rates we use to convert the International segment’s operating results from local currencies into U.S. dollars for reporting purposes. We also may use the term “constant currency,” which represents results adjusted to exclude foreign currency impacts. We calculate those impacts as the difference between the current period results translated using the current period currency exchange rates and using the comparable prior period currency exchange rates. We believe the disclosure of revenue changes in constant currency provides useful supplementary information to investors in light of significant fluctuations in currency rates.
Refer to the Non-GAAP Financial Measures section below for detailed reconciliations of items impacting consolidated adjusted operating income, consolidated adjusted effective tax rate and consolidated adjusted diluted EPS in the presented periods.
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Results of Operations
Consolidated Results
Selected consolidated financial data was as follows ($ in millions, except per share amounts):
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| November 1, 2025 | November 2, 2024 | November 1, 2025 | November 2, 2024 | ||||||||||||||||||||
| Revenue | $ | 9,672 | $ | 9,445 | $ | 27,877 | $ | 27,580 | |||||||||||||||
| Revenue % change | 2.4 | % | (3.2) | % | 1.1 | % | (4.3) | % | |||||||||||||||
| Comparable sales % change | 2.7 | % | (2.9) | % | 1.2 | % | (3.7) | % | |||||||||||||||
| Gross profit | $ | 2,248 | $ | 2,217 | $ | 6,491 | $ | 6,467 | |||||||||||||||
Gross profit as a % of revenue(1) | 23.2 | % | 23.5 | % | 23.3 | % | 23.4 | % | |||||||||||||||
| Selling, general and administrative expense ("SG&A") | $ | 1,884 | $ | 1,871 | $ | 5,434 | $ | 5,418 | |||||||||||||||
SG&A as a % of revenue(1) | 19.5 | % | 19.8 | % | 19.5 | % | 19.6 | % | |||||||||||||||
| Restructuring charges | $ | (5) | $ | (4) | $ | 218 | $ | 4 | |||||||||||||||
| Goodwill and intangible asset impairments | $ | 171 | $ | - | $ | 171 | $ | - | |||||||||||||||
| Operating income | $ | 198 | $ | 350 | $ | 668 | $ | 1,045 | |||||||||||||||
| Operating income as a % of revenue | 2.0 | % | 3.7 | % | 2.4 | % | 3.8 | % | |||||||||||||||
| Net earnings | $ | 140 | $ | 273 | $ | 528 | $ | 810 | |||||||||||||||
| Diluted EPS | $ | 0.66 | $ | 1.26 | $ | 2.48 | $ | 3.73 | |||||||||||||||
(1)Because retailers vary in how they record costs of operating their supply chain between cost of sales and SG&A, our gross profit rate and SG&A rate may not be comparable to other retailers’ corresponding rates. For additional information regarding costs classified in cost of sales and SG&A, refer to Note 1, Summary of Significant Accounting Policies, of the Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended February 1, 2025.
In the third quarter and first nine months of fiscal 2026, we generated $9.7 billion and $27.9 billion in revenue, respectively, and our comparable sales grew 2.7% and 1.2%, respectively, driven by a mix of new technology innovation, our continued focus on omni-channel customer experience and strong vendor partnerships. Comparable sales changes in the third quarter and first nine months of fiscal 2026 primarily included comparable sales growth in computing, gaming and mobile phones, partially offset by comparable sales declines in home theater, appliances and drones.
Restructuring charges in the first nine months of fiscal 2026 were primarily associated with a labor and store optimization restructuring initiative that commenced in the second quarter of fiscal 2026 and a restructuring initiative focused on optimizing our Best Buy Health business that commenced in the first quarter of fiscal 2026. Refer to Note 2, Restructuring, of the Notes to Consolidated Financial Statements, for additional information.
Goodwill and intangible asset impairments in the third quarter and first nine months of fiscal 2026 were related to Best Buy Health. A change in Best Buy Health’s customer base during the third quarter of fiscal 2026 resulted in an impairment review of all Best Buy Health assets. The impairments reflect 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. Refer to Note 3, Goodwill and Intangible Assets, of the Notes to Consolidated Financial Statements, for additional information
Operating income rate decreased in the third quarter of fiscal 2026, primarily due to goodwill and intangible asset impairments.
Operating income rate decreased in the first nine months of fiscal 2026, primarily due to higher restructuring charges and goodwill and intangible asset impairments.
Diluted EPS decreased in the third quarter of fiscal 2026, primarily due to lower net earnings driven by higher goodwill and intangible asset impairments, partially offset by lower income tax expense.
Diluted EPS decreased in the first nine months of fiscal 2026, primarily due to lower net earnings driven by higher restructuring charges and goodwill and intangible asset impairments, partially offset by lower income tax expense.
Revenue, gross profit rate, SG&A rate and operating income rate changes in the third quarter of fiscal 2026 were primarily driven by our Domestic segment.
Revenue, gross profit rate and operating income rate changes in the first nine months of fiscal 2026 were primarily driven by our Domestic segment, and SG&A rate changes in the first nine months of fiscal 2026 were driven by our International segment.
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For further discussion of our Domestic and International segments, see Segment Performance Summary, below.
Store Summary
Stores open by reportable segment were as follows:
| November 1, 2025 | November 2, 2024 | ||||||||||
| Best Buy | 886 | 889 | |||||||||
| Outlet Centers | 18 | 25 | |||||||||
| Pacific Sales | 20 | 20 | |||||||||
| Yardbird | 2 | 23 | |||||||||
| Total Domestic stores | 926 | 957 | |||||||||
| Canada Best Buy stores | 129 | 129 | |||||||||
| Canada Best Buy Mobile stand-alone stores | 28 | 31 | |||||||||
Total International stores(1) | 157 | 160 | |||||||||
| Total stores | 1,083 | 1,117 | |||||||||
(1)Excludes Best Buy Express stores leased by Bell Canada.
We continuously monitor store performance as part of a market-driven, omnichannel strategy. As we approach the expiration of leases, we evaluate various options for each location, including whether a store should remain open. In fiscal 2026, we currently expect to reduce our traditional Domestic Best Buy store count by 5 stores in the normal course of operations. In fiscal 2026, we closed select non-traditional Domestic store locations in conjunction with our restructuring initiative that commenced in the second quarter of fiscal 2026, with additional closures expected in fiscal 2027. See Note 2, Restructuring, of the Notes to Condensed Consolidated Financial Statements, included in this Quarterly Report on Form 10-Q for additional information.
Income Tax Expense
Income tax expense decreased to $64 million in the third quarter of fiscal 2026 compared to $85 million in the third quarter of fiscal 2025, primarily due to lower pre-tax income, partially offset by the impact of certain expenses that are not tax deductible. Effective tax rate (“ETR”) increased to 31.5% in the third quarter of fiscal 2026 compared to 23.9% in the third quarter of fiscal 2025, primarily due to the impact of certain expenses that are not tax deductible and lower pre-tax income, partially offset by increased tax benefits from resolutions of tax matters.
Income tax expense decreased to $151 million in the first nine months of fiscal 2026 compared to $266 million in the first nine months of fiscal 2025, primarily due to lower pre-tax income and the discrete tax impacts of the restructuring charges and associated exit of a component of our Best Buy Health business, partially offset by the impact of certain expenses that are not tax deductible. ETR decreased to 22.3% in the first nine months of fiscal 2026 compared to 24.8% in the first nine months of fiscal 2025, primarily due to the discrete tax impacts of the restructuring charges and associated exit of a component of our Best Buy Health business, partially offset by the impact of certain expenses that are not tax deductible and lower pre-tax income. See Note 2, Restructuring, of the Notes to Condensed Consolidated Financial Statements, included in this Quarterly Report on Form 10-Q for additional information.
Our tax provision for interim periods is determined using an estimate of our annual ETR, adjusted for discrete and unusual and infrequent items, if any, that are taken into account in the relevant period. We update our estimate of the annual ETR each quarter, and we make a cumulative adjustment if our estimated tax rate changes. Our quarterly tax provision and our quarterly estimate of our annual ETR are subject to variation due to several factors, including our ability to accurately forecast our pre-tax and taxable income and loss by jurisdiction, tax audit developments, recognition of excess tax benefits or deficiencies related to stock-based compensation, foreign currency gains (losses), changes in laws or regulations, and expenses or losses for which tax benefits are not recognized. Our ETR can be more or less volatile based on the amount of pre-tax earnings. For example, the impact of discrete items and non-deductible losses on our ETR is greater when our pre-tax earnings are lower.
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Segment Performance Summary
Domestic Segment
Selected financial data for the Domestic segment was as follows ($ in millions):
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| November 1, 2025 | November 2, 2024 | November 1, 2025 | November 2, 2024 | ||||||||||||||||||||
| Revenue | $ | 8,878 | $ | 8,697 | $ | 25,703 | $ | 25,523 | |||||||||||||||
| Revenue % change | 2.1 | % | (3.3) | % | 0.7 | % | (4.4) | % | |||||||||||||||
Comparable sales % change(1) | 2.4 | % | (2.8) | % | 1.0 | % | (3.8) | % | |||||||||||||||
| Gross profit | $ | 2,067 | $ | 2,049 | $ | 6,008 | $ | 5,993 | |||||||||||||||
| Gross profit as a % of revenue | 23.3 | % | 23.6 | % | 23.4 | % | 23.5 | % | |||||||||||||||
Adjusted SG&A(2) | $ | 1,707 | $ | 1,711 | $ | 4,968 | $ | 4,966 | |||||||||||||||
Adjusted SG&A as a % of revenue(3) | 19.2 | % | 19.7 | % | 19.3 | % | 19.5 | % | |||||||||||||||
Adjusted operating income(2) | $ | 360 | $ | 338 | $ | 1,040 | $ | 1,027 | |||||||||||||||
Adjusted operating income as a % of revenue(4) | 4.1 | % | 3.9 | % | 4.0 | % | 4.0 | % | |||||||||||||||
| Selected Online Revenue Data | |||||||||||||||||||||||
| Total online revenue | $ | 2,823 | $ | 2,727 | $ | 8,258 | $ | 7,970 | |||||||||||||||
| Online revenue as a % of total segment revenue | 31.8 | % | 31.4 | % | 32.1 | % | 31.2 | % | |||||||||||||||
Comparable online sales % change(1) | 3.5 | % | (1.0) | % | 3.6 | % | (2.9) | % | |||||||||||||||
(1)Comparable online sales are included in the comparable sales calculation.
(2)Represents Domestic segment Adjusted SG&A and Domestic segment Adjusted operating income as reported in accordance with the adoption of Accounting Standards Update (“ASU”) 2023-07, Segment Reporting (Topic 280), in the fourth quarter of fiscal 2025. See our Annual Report on Form 10-K for the fiscal year ended February 1, 2025, for additional information.
(3)Adjusted SG&A as a % of revenue is calculated as Domestic segment Adjusted SG&A divided by Domestic segment Revenue.
(4)Adjusted operating income as a % of revenue is calculated as Domestic segment Adjusted operating income divided by Domestic segment Revenue.
Domestic segment revenue increased in the third quarter and first nine months of fiscal 2026, primarily driven by comparable sales growth in computing, gaming and mobile phones, partially offset by comparable sales declines in home theater and appliances. Online revenue of $2.8 billion and $8.3 billion in the third quarter and first nine months of fiscal 2026 increased 3.5% and 3.6%, respectively, on a comparable basis.
Domestic segment revenue mix percentages and comparable sales percentage changes by revenue category were as follows:
| Revenue Mix | Comparable Sales | ||||||||||||||||||||||
| Three Months Ended | Three Months Ended | ||||||||||||||||||||||
| November 1, 2025 | November 2, 2024 | November 1, 2025 | November 2, 2024 | ||||||||||||||||||||
| Computing and Mobile Phones | 49% | 47% | 7.6 | % | 3.8 | % | |||||||||||||||||
| Consumer Electronics | 26% | 28% | (2.9) | % | (5.8) | % | |||||||||||||||||
| Appliances | 11% | 12% | (8.4) | % | (14.7) | % | |||||||||||||||||
| Entertainment | 6% | 5% | 14.0 | % | (18.8) | % | |||||||||||||||||
| Services | 7% | 7% | (1.0) | % | 6.0 | % | |||||||||||||||||
| Other | 1% | 1% | (6.5) | % | 12.9 | % | |||||||||||||||||
| Total | 100% | 100% | 2.4 | % | (2.8) | % | |||||||||||||||||
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Notable comparable sales changes by revenue category were as follows:
•Computing and Mobile Phones: The 7.6% comparable sales growth was driven primarily by computing and mobile phones.
•Consumer Electronics: The 2.9% comparable sales decline was driven primarily by home theater.
•Appliances: The 8.4% comparable sales decline was driven primarily by large appliances.
•Entertainment: The 14.0% comparable sales growth was driven primarily by gaming, partially offset by a comparable sales decline in drones.
•Services: The 1.0% comparable sales decline was driven primarily by Best Buy Health service offerings.
Domestic segment gross profit rate decreased in the third quarter of fiscal 2026, primarily due to lower product margin rates, which were partially offset by rate improvement within the services category. The lower product margin rates were primarily driven by an unfavorable sales mix and increased personalized promotional offers.
Domestic segment gross profit rate decreased in the first nine months of fiscal 2026, primarily due to lower product margin rates and rate pressure within our Best Buy Health business, which were partially offset by rate improvement within the services category.
Domestic segment adjusted SG&A decreased in the third quarter of fiscal 2026, primarily due to lower Best Buy Health expenses, largely offset by higher incentive compensation expense.
Domestic segment adjusted SG&A increased in the first nine months of fiscal 2026, primarily due to higher compensation expense, which includes incentive compensation, partially offset by lower Best Buy Health expenses and favorable fiscal 2026 indirect tax resolutions.
Domestic segment adjusted operating income rate increased in the third quarter of fiscal 2026, primarily due to a favorable adjusted SG&A rate driven by sales leverage, partially offset by an unfavorable gross profit rate.
Domestic segment adjusted operating income rate remained effectively unchanged in the first nine months of fiscal 2026 compared to the first nine months of fiscal 2025, primarily due to a favorable adjusted SG&A rate, offset by an unfavorable gross profit rate.
International Segment
Selected financial data for the International segment was as follows ($ in millions):
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| November 1, 2025 | November 2, 2024 | November 1, 2025 | November 2, 2024 | ||||||||||||||||||||
| Revenue | $ | 794 | $ | 748 | $ | 2,174 | $ | 2,057 | |||||||||||||||
| Revenue % change | 6.1 | % | (1.6) | % | 5.7 | % | (2.9) | % | |||||||||||||||
| Comparable sales % change | 6.3 | % | (3.7) | % | 4.5 | % | (3.0) | % | |||||||||||||||
| Gross profit | $ | 181 | $ | 168 | $ | 483 | $ | 474 | |||||||||||||||
| Gross profit as a % of revenue | 22.8 | % | 22.5 | % | 22.2 | % | 23.0 | % | |||||||||||||||
Adjusted SG&A(1) | $ | 153 | $ | 155 | $ | 433 | $ | 436 | |||||||||||||||
Adjusted SG&A as a % of revenue(2) | 19.3 | % | 20.7 | % | 19.9 | % | 21.2 | % | |||||||||||||||
Adjusted operating income(1) | $ | 28 | $ | 13 | $ | 50 | $ | 38 | |||||||||||||||
Adjusted operating income as a % of revenue(3) | 3.5 | % | 1.7 | % | 2.3 | % | 1.8 | % | |||||||||||||||
(1)Represents International segment Adjusted SG&A and International segment Adjusted operating income as reported in accordance with the adoption of ASU 2023-07. See our Annual Report on Form 10-K for the fiscal year ended February 1, 2025, for additional information.
(2)Adjusted SG&A as a % of revenue is calculated as International segment Adjusted SG&A divided by International segment Revenue.
(3)Adjusted operating income as a % of revenue is calculated as International segment Adjusted operating income divided by International segment Revenue.
International segment revenue increased in the third quarter of fiscal 2026, primarily driven by comparable sales growth in computing and mobile phones, and revenue from Best Buy Express locations excluded from comparable sales that opened in Canada after the second quarter of fiscal 2025. These increases were partially offset by the negative impact of foreign exchange rates.
International segment revenue increased in the first nine months of fiscal 2026, primarily driven by comparable sales growth in computing, gaming and mobile phones, and revenue from Best Buy Express locations excluded from comparable sales that opened in Canada after the second quarter of fiscal 2025. These increases were partially offset by the negative impact of foreign exchange rates.
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International segment revenue mix percentages and comparable sales percentage changes by revenue category were as follows:
| Revenue Mix | Comparable Sales | ||||||||||||||||||||||
| Three Months Ended | Three Months Ended | ||||||||||||||||||||||
| November 1, 2025 | November 2, 2024 | November 1, 2025 | November 2, 2024 | ||||||||||||||||||||
| Computing and Mobile Phones | 53% | 52% | 9.2 | % | (0.1) | % | |||||||||||||||||
| Consumer Electronics | 25% | 26% | 3.6 | % | (6.1) | % | |||||||||||||||||
| Appliances | 8% | 9% | (4.1) | % | (8.1) | % | |||||||||||||||||
| Entertainment | 7% | 6% | 11.3 | % | (18.7) | % | |||||||||||||||||
| Services | 6% | 6% | 3.9 | % | 4.0 | % | |||||||||||||||||
| Other | 1% | 1% | 3.3 | % | (12.7) | % | |||||||||||||||||
| Total | 100% | 100% | 6.3 | % | (3.7) | % | |||||||||||||||||
Notable comparable sales changes by revenue category were as follows:
•Computing and Mobile Phones: The 9.2% comparable sales growth was driven primarily by computing and mobile phones.
•Consumer Electronics: The 3.6% comparable sales growth was driven primarily by digital imaging.
•Appliances: The 4.1% comparable sales decline was driven primarily by large appliances.
•Entertainment: The 11.3% comparable sales growth was driven primarily by gaming.
•Services: The 3.9% comparable sales growth was driven primarily by growth in our membership programs.
International segment gross profit rate increased in the third quarter of fiscal 2026, primarily due to favorable supply chain costs.
International segment gross profit rate decreased in the first nine months of fiscal 2026, primarily due to lower product margin rates.
International segment adjusted SG&A decreased in the third quarter of fiscal 2026, primarily due to the favorable impact of foreign exchange rates, partially offset by higher employee compensation expense.
International segment adjusted SG&A decreased in the first nine months of fiscal 2026, primarily due to the favorable impact of foreign exchange rates, partially offset by higher credit card processing fees, expenses associated with Best Buy Express locations that opened after the second quarter of fiscal 2025 and higher employee compensation expense.
International segment adjusted operating income rate increased in the third quarter of fiscal 2026, primarily due to increased leverage from higher sales volumes, which resulted in a favorable adjusted SG&A rate.
International segment adjusted operating income rate increased in the first nine months of fiscal 2026, primarily due to increased leverage from higher sales volumes, which resulted in a favorable adjusted SG&A rate, partially offset by an unfavorable gross profit rate.
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Consolidated Non-GAAP Financial Measures
Reconciliations of consolidated operating income, effective tax rate and diluted EPS (GAAP financial measures) to consolidated adjusted operating income, adjusted effective tax rate and adjusted diluted EPS (non-GAAP financial measures), respectively, were as follows ($ in millions, except per share amounts):
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| November 1, 2025 | November 2, 2024 | November 1, 2025 | November 2, 2024 | ||||||||||||||||||||
| Operating income | $ | 198 | $ | 350 | $ | 668 | $ | 1,045 | |||||||||||||||
| % of revenue | 2.0 | % | 3.7 | % | 2.4 | % | 3.8 | % | |||||||||||||||
Intangible asset amortization(1) | 3 | 5 | 12 | 16 | |||||||||||||||||||
Long-lived asset impairment(2) | 21 | - | 21 | - | |||||||||||||||||||
Restructuring charges(3) | (5) | (4) | 218 | 4 | |||||||||||||||||||
Goodwill and intangible asset impairments(2) | 171 | - | 171 | - | |||||||||||||||||||
| Adjusted operating income | $ | 388 | $ | 351 | $ | 1,090 | $ | 1,065 | |||||||||||||||
| % of revenue | 4.0 | % | 3.7 | % | 3.9 | % | 3.9 | % | |||||||||||||||
| Effective tax rate | 31.5 | % | 23.9 | % | 22.3 | % | 24.8 | % | |||||||||||||||
Intangible asset amortization(1) | (0.3) | % | (0.1) | % | 0.1 | % | — | % | |||||||||||||||
Long-lived asset impairment(2) | (1.4) | % | — | % | 0.2 | % | — | % | |||||||||||||||
Restructuring charges(3) | (1.5) | % | — | % | 3.2 | % | — | % | |||||||||||||||
Goodwill and intangible asset impairments(2) | (3.7) | % | — | % | 0.5 | % | — | % | |||||||||||||||
Loss on disposal of subsidiaries(4) | — | % | — | % | 0.1 | % | — | % | |||||||||||||||
| Adjusted effective tax rate | 24.6 | % | 23.8 | % | 26.4 | % | 24.8 | % | |||||||||||||||
| Diluted EPS | $ | 0.66 | $ | 1.26 | $ | 2.48 | $ | 3.73 | |||||||||||||||
Intangible asset amortization(1) | 0.02 | 0.02 | 0.06 | 0.07 | |||||||||||||||||||
Long-lived asset impairment(2) | 0.10 | - | 0.10 | - | |||||||||||||||||||
Restructuring charges(3) | (0.03) | (0.02) | 1.02 | 0.02 | |||||||||||||||||||
Goodwill and intangible asset impairments(2) | 0.81 | - | 0.80 | - | |||||||||||||||||||
Loss on disposal of subsidiaries(4) | - | - | 0.02 | - | |||||||||||||||||||
Income tax impact of non-GAAP adjustments(5) | (0.16) | - | (0.66) | (0.02) | |||||||||||||||||||
| Adjusted diluted EPS | $ | 1.40 | $ | 1.26 | $ | 3.82 | $ | 3.80 | |||||||||||||||
For additional information regarding the nature of charges discussed below, refer to Note 2, Restructuring; Note 3, Goodwill and Intangible Assets; and Note 4, Fair Value Measurements, of the Notes to Condensed Consolidated Financial Statements, included in this Quarterly Report on Form 10-Q.
(1)Represents the non-cash amortization of definite-lived intangible assets associated with acquisitions, including customer relationships, tradenames and developed technology assets.
(2)Represents charges incurred related to Best Buy Health, comprised of non-cash impairments of goodwill, intangible assets and certain long-lived assets.
(3)Represents charges and subsequent adjustments for the three and nine months ended November 1, 2025, primarily related to a labor and store optimization initiative that commenced in the second quarter of fiscal 2026, and a restructuring initiative within our Best Buy Health business that commenced in the first quarter of fiscal 2026. Charges and subsequent adjustments for the three and nine months ended November 2, 2024, primarily related to an enterprise-wide restructuring initiative that commenced in the fourth quarter of fiscal 2024.
(4)Primarily represents the loss on disposal of a component of our Best Buy Health business.
(5)The non-GAAP adjustments primarily relate to the U.S. As such, the forecasted annual income tax on a portion of the U.S. non-GAAP adjustments is calculated using the statutory tax rate of 24.5%, adjusted for tax benefits discrete to the period. There is no forecasted annual income tax for a portion of the U.S. non-GAAP adjustments, as there is no forecasted annual tax benefit on the expenses in the calculation of GAAP income tax expense.
Adjusted operating income rate increased in the third quarter of fiscal 2026, primarily due to a favorable SG&A rate, partially offset by an unfavorable gross profit rate.
Adjusted operating income rate in the first nine months of fiscal 2026 remained effectively unchanged from the first nine months of fiscal 2025.
Adjusted effective tax rate increased in the third quarter of fiscal 2026, primarily due to decreased tax benefits from green energy incentives and increased U.S. taxes from sourcing operations, partially offset by increased tax benefits from resolutions of tax matters. Adjusted effective tax rate increased in the first nine months of fiscal 2026, primarily due to decreased tax benefits from green energy incentives and resolutions of tax matters, as well as increased U.S. taxes from sourcing operations.
Adjusted diluted EPS increased in the third quarter of fiscal 2026, primarily due to higher adjusted operating income.
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Adjusted diluted EPS increased in the first nine months of fiscal 2026, primarily due to higher adjusted operating income and lower diluted weighted-average common shares outstanding, partially offset by the impact of the higher adjusted effective tax rate and lower investment income.
Liquidity and Capital Resources
We closely manage our liquidity and capital resources. Our liquidity requirements depend on key variables, including the level of investment required to support our business strategies, the performance of our business, capital expenditures, dividends, credit facilities, short-term borrowing arrangements and working capital management. We modify our approach to managing these variables as changes in our operating environment arise. For example, capital expenditures and share repurchases are a component of our cash flow and capital management strategy, which, to a large extent, we can adjust in response to economic and other changes in our business environment.
Cash and cash equivalents were as follows ($ in millions):
| November 1, 2025 | February 1, 2025 | November 2, 2024 | |||||||||||||||
| Cash and cash equivalents | $ | 923 | $ | 1,578 | $ | 643 | |||||||||||
The decrease in cash and cash equivalents from February 1, 2025, was primarily due to dividend payments, the timing and volume of inventory purchases and payments, capital expenditures and share repurchases, partially offset by cash flows related to earnings.
The increase in cash and cash equivalents from November 2, 2024, was primarily due to positive cash flows from operations, primarily driven by earnings, partially offset by dividend payments, capital expenditures and share repurchases.
Cash Flows
Cash flows were as follows ($ in millions):
| Nine Months Ended | |||||||||||
| November 1, 2025 | November 2, 2024 | ||||||||||
| Total cash provided by (used in): | |||||||||||
| Operating activities | $ | 684 | $ | 561 | |||||||
| Investing activities | (555) | (522) | |||||||||
| Financing activities | (808) | (892) | |||||||||
| Effect of exchange rate changes on cash and cash equivalents | 5 | (2) | |||||||||
| Decrease in cash, cash equivalents and restricted cash | $ | (674) | $ | (855) | |||||||
Operating Activities
The increase in cash provided by operating activities in the first nine months of fiscal 2026 was primarily driven by an increase in net earnings adjusted for non-cash items, partially offset by the timing and volume of inventory purchases and payments.
Investing Activities
The increase in cash used in investing activities in the first nine months of fiscal 2026 was primarily due to the disposal of a component of our Best Buy Health business.
Financing Activities
The decrease in cash used in financing activities in the first nine months of fiscal 2026 was primarily driven by lower share repurchases.
Sources of Liquidity
Funds generated by operating activities, available cash and cash equivalents, our credit facilities, other debt arrangements and trade payables are our most significant sources of liquidity. We believe our sources of liquidity will be sufficient to fund operations and anticipated capital expenditures, share repurchases, dividends and strategic initiatives, including business combinations. However, in the event our liquidity is insufficient, we may be required to limit our spending. There can be no assurance that we will continue to generate cash flows at or above current levels or that we will be able to maintain our ability to borrow under our existing credit facilities or obtain additional financing, if necessary, on favorable terms.
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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 in 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.
Restricted Cash
Our liquidity is also affected by restricted cash balances that are primarily restricted to cover product protection plans provided under our membership offerings and self-insurance liabilities. Restricted cash, which is included in Other current assets on our Condensed Consolidated Balance Sheets, was $271 million, $290 million and $295 million as of November 1, 2025, February 1, 2025, and November 2, 2024, respectively. The decreases in restricted cash from February 1, 2025, and November 2, 2024 were primarily due to releases of product protection reserves based on claims and purchasing behaviors of customers participating in our membership offerings.
Debt and Capital
As of November 1, 2025, we had $500 million of principal amount of notes due October 1, 2028, and $650 million of principal amount of notes due October 1, 2030. Refer to Note 6, Debt, of the Notes to Condensed Consolidated Financial Statements, included in this Quarterly Report on Form 10-Q, and Note 8, Debt, of the Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended February 1, 2025, for additional information about our outstanding debt.
Share Repurchases and Dividends
We repurchase our common stock and pay dividends pursuant to programs approved by our Board of Directors (“Board”). The payment of cash dividends is also subject to customary legal and contractual restrictions. Our long-term capital allocation strategy is to first fund operations and investments in growth and then return excess cash over time to shareholders through dividends and share repurchases while maintaining investment-grade credit metrics. Our share repurchase plans are evaluated on an ongoing basis, considering factors such as our financial condition and cash flows, our economic outlook, the impact of tax laws, our liquidity needs, our stock price and the health and stability of global markets. The timing and amount of future repurchases may vary depending on such factors.
On February 28, 2022, our Board approved a $5.0 billion share repurchase program. There is no expiration date governing the period over which we can repurchase shares under this authorization.
Share repurchase and dividend activity were as follows ($ 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 | ||||||||||||||||||||
| Total cost of shares repurchased | $ | 34 | $ | 135 | $ | 201 | $ | 285 | |||||||||||||||
| Average price per share | $ | 74.03 | $ | 95.43 | $ | 67.28 | $ | 87.19 | |||||||||||||||
| Total number of shares repurchased | 0.5 | 1.4 | 3.0 | 3.2 | |||||||||||||||||||
| Regular quarterly cash dividend per share | $ | 0.95 | $ | 0.94 | $ | 2.85 | $ | 2.82 | |||||||||||||||
| Cash dividends declared and paid | $ | 199 | $ | 202 | $ | 602 | $ | 607 | |||||||||||||||
The total cost of shares repurchased decreased in the third quarter of fiscal 2026, due to decreases in the volume of repurchases and the average price per share. The total cost of shares repurchased decreased in the first nine months of fiscal 2026, due to decreases in the average price per share and the volume of repurchases .
Cash dividends declared and paid decreased in the third quarter and first nine months of fiscal 2026, due to fewer shares outstanding, partially offset by increases in the regular quarterly cash dividend per share.
Off-Balance-Sheet Arrangements and Contractual Obligations
Our liquidity is not dependent on the use of off-balance-sheet financing arrangements other than in connection with our $1.25 billion in undrawn capacity on our Five-Year Facility Agreement as of November 1, 2025, which, if drawn upon, would be included in either short-term or long-term debt on our Condensed Consolidated Balance Sheets.
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There has been no material change in our contractual obligations other than in the ordinary course of business since the end of fiscal 2025. See our Annual Report on Form 10-K for the fiscal year ended February 1, 2025, for additional information regarding our off-balance-sheet arrangements and contractual obligations.
Significant Accounting Policies and Estimates
We describe our significant accounting policies in Note 1, Summary of Significant Accounting Policies, of the Notes to Consolidated Financial Statements, and our critical accounting estimates in Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations, in our Annual Report on Form 10-K for the fiscal year ended February 1, 2025.
Other than the goodwill impairment recorded in the third quarter of fiscal 2026 for the Best Buy Health reporting unit, there have been no significant changes in our significant accounting policies or critical accounting estimates since the end of fiscal 2025. See Note 3, Goodwill and Intangible Assets, of the Notes to Condensed Consolidated Financial Statements, included in this Quarterly Report on Form 10-Q.
New or Recently Issued Accounting Pronouncements
For a description of applicable new or recently issued accounting pronouncements, including our assessment of the impact on our financial statements, see Note 1, Basis of Presentation, of the Notes to Condensed Consolidated Financial Statements, included in this Quarterly Report on Form 10-Q.
Safe Harbor Statement Under the Private Securities Litigation Reform Act
Section 27A of the Securities Act of 1933, as amended (“Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (“Exchange Act”), provide a “safe harbor” for forward-looking statements to encourage companies to provide prospective information about their companies. With the exception of historical information, the matters discussed in this Quarterly Report on Form 10-Q are forward-looking statements and may be identified by the use of words such as “anticipate,” “appear,” “approximate,” “assume,” “believe,” “continue,” “could,” “estimate,” “expect,” “foresee,” “guidance,” “intend,” “may,” “might,” “outlook,” “plan,” “possible,” “project,” “seek,” “should,” “would,” and other words and terms of similar meaning or the negatives thereof. Such statements reflect our current views and estimates with respect to future market conditions, company performance and financial results, operational investments, business prospects, our operating model, new strategies and growth initiatives, the competitive environment, consumer behavior and other events. These statements involve a number of judgments and are subject to certain risks and uncertainties, many of which are outside the control of the Company, that could cause actual results to differ materially from the potential results discussed in such forward-looking statements. Readers should review Item 1A, Risk Factors, of our most recent Annual Report on Form 10-K, and any updated information in subsequent Quarterly Reports on Form 10-Q, for a description of important factors that could cause our actual results to differ materially from those contemplated by the forward-looking statements made in this Quarterly Report on Form 10-Q. Among the factors that could cause actual results and outcomes to differ materially from those contained in such forward-looking statements are the following: macroeconomic pressures in the markets in which we operate (including but not limited to recession, inflation rates, fluctuations in foreign currency exchange rates, limitations on a government’s ability to borrow and/or spend capital, fluctuations in housing prices, energy markets, jobless rates, the imposition of tariffs, trade wars and effects related to the conflicts in Eastern Europe and the Middle East, supply chain disruptions or other geopolitical events); catastrophic events, health crises and pandemics; susceptibility of the products we sell to technological advancements, product life cycle fluctuations and changes in consumer preferences; competition (including from multi-channel retailers, e-commerce business, technology service providers, traditional store-based retailers, vendors and mobile network carriers and in the provision of delivery speed and options); our ability to attract and retain qualified employees; changes in market compensation rates; our expansion into health and new products, services and technologies; our focus on services as a strategic priority; our reliance on key vendors and mobile network carriers (including product availability); our ability to maintain positive brand perception and recognition; our ability to effectively manage strategic ventures, alliances or acquisitions; our ability to effectively manage our real estate portfolio; inability of vendors or service providers to perform components of our supply chain (impacting our stores or other aspects of our operations) and other various functions of our business; risks arising from and potentially unique to our exclusive brands products; risks associated with vendors that source products outside of the U.S.; our reliance on our information technology systems, internet and telecommunications access and capabilities; our ability to prevent or effectively respond to a cyber-attack, privacy or security breach; product safety and quality concerns; changes to labor or employment laws or regulations; risks arising from statutory, regulatory and legal developments (including statutes and/or regulations related to tax or privacy); evolving corporate governance and public disclosure regulations and expectations (including, but not limited to, cybersecurity and environmental, social and governance matters); risks arising from our international activities (including those related to the conflicts in Eastern Europe and the Middle East, fluctuations in foreign currency exchange rates, the imposition of tariffs and trade wars) and those of our vendors; failure to effectively manage our costs; our dependence on cash flows and net earnings generated during the fourth fiscal quarter; pricing investments and promotional activity; economic or regulatory developments that might affect our ability to provide attractive promotional financing; constraints in the capital markets; changes to our vendor credit terms; changes in our credit ratings; and failure to meet financial-performance guidance or other forward-looking statements. We caution that the foregoing list of important factors is not
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complete. Any forward-looking statements speak only as of the date they are made and we assume no obligation to update any forward-looking statement that we may make.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
As disclosed in our Annual Report on Form 10-K for the fiscal year ended February 1, 2025, in addition to the risks inherent in our operations, we are exposed to certain market risks.
Interest Rate Risk
We are exposed to changes in short-term market interest rates and these changes in rates will impact our net interest expense. Certain cash, cash equivalents and restricted cash generate interest income that will vary based on changes in short-term interest rates. In addition, we have swapped a portion of our fixed-rate debt to floating rate such that the interest expense on this debt will vary with short-term interest rates. Refer to Note 1, Summary of Significant Accounting Policies, of the Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended February 1, 2025, for further information regarding our interest rate swaps.
As of November 1, 2025, we had $1.2 billion of cash, cash equivalents and restricted cash and $0.5 billion of debt that has been swapped to floating rate, and therefore the net asset balance exposed to interest rate changes was $0.7 billion. As of November 1, 2025, a 50-basis point increase in short-term interest rates would have led to an estimated $3 million increase in interest income during the third quarter ended November 1, 2025, and conversely a 50-basis point decrease in short-term interest rates would have led to an estimated $3 million decrease in interest income during the third quarter ended November 1, 2025.
Foreign Currency Exchange Rate Risk
We have market risk arising from changes in foreign currency exchange rates related to operations in our International segment. On a limited basis, we utilize foreign currency forward contracts to manage foreign currency exposure to certain forecasted inventory purchases, recognized receivable and payable balances and our investment in our Canadian operations. Our primary objective in holding derivatives is to reduce the volatility of net earnings and cash flows, as well as to reduce the volatility of net asset value associated with changes in foreign currency exchange rates. Our foreign currency risk management strategy includes both hedging instruments and derivatives that are not designated as hedging instruments. Refer to Note 1, Summary of Significant Accounting Policies, of the Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended February 1, 2025, for additional information regarding these instruments.
During the third quarter and first nine months of fiscal 2026, foreign currency exchange rate fluctuations were primarily driven by the strength of the U.S. dollar against the Canadian dollar compared to the prior-year period. The estimated impact of foreign exchange rate fluctuations on our revenue had an unfavorable impact of $13 million and $44 million in the third quarter and first nine months of fiscal 2026, respectively. The estimated impacts of foreign exchange rate fluctuations on our net earnings in the third quarter and first nine months of fiscal 2026 were not significant.
Item 4. Controls and Procedures
We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in the reports we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the U.S. Securities and Exchange Commission’s (“SEC”) rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer (principal executive officer) and Chief Financial Officer (principal financial officer), to allow timely decisions regarding required disclosure. We have established a Disclosure Committee, consisting of certain members of management, to assist in this evaluation. The Disclosure Committee meets on a regular quarterly basis and more often if necessary.
Our management, including our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) promulgated under the Exchange Act), at November 1, 2025. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, at November 1, 2025, our disclosure controls and procedures were effective.
There were no changes in internal control over financial reporting during the fiscal quarter ended November 1, 2025, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
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PART II — OTHER INFORMATION
Item 1. Legal Proceedings
For information about our legal proceedings, see Note 10, Contingencies, of the Notes to Condensed Consolidated Financial Statements, included in this Quarterly Report on Form 10-Q.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
c) Stock Repurchases
On February 28, 2022, our Board approved a $5.0 billion share repurchase program. There is no expiration date governing the period over which we can repurchase shares under this authorization. For additional information, see Note 9, Repurchase of Common Stock, of the Notes to the Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q.
| Fiscal Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Program | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Program | ||||||||||||||||||||||
| August 3, 2025 through August 30, 2025 | 320,184 | $ | 70.00 | 320,184 | $ | 3,095,000,000 | ||||||||||||||||||||
| August 31, 2025 through October 4, 2025 | - | $ | - | - | $ | 3,095,000,000 | ||||||||||||||||||||
| October 5, 2025 through November 1, 2025 | 147,689 | $ | 82.75 | 147,689 | $ | 3,083,000,000 | ||||||||||||||||||||
| Total fiscal 2026 third quarter | 467,873 | $ | 74.03 | 467,873 | $ | 3,083,000,000 | ||||||||||||||||||||
Item 5. Other Information
Rule 10b5-1 Plan Elections
During the fiscal quarter ended November 1, 2025, none of the Company’s directors or officers (as defined in Rule 16(a)-1(f) of the Securities Exchange Act of 1934, as amended) adopted, terminated or modified a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement (as such terms are defined in Item 408 of Regulation S-K of the Securities Act of 1933, as amended).
Item 6. Exhibits
| 101 | The following financial information from our Quarterly Report on Form 10-Q for the third quarter of fiscal 2026, filed with the SEC on December 5, 2025, formatted in Inline Extensible Business Reporting Language (“iXBRL”): (i) the Condensed Consolidated Balance Sheets as of November 1, 2025, February 1, 2025, and November 2, 2024, (ii) the Condensed Consolidated Statements of Earnings for the three and nine months ended November 1, 2025, and November 2, 2024, (iii) the Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended November 1, 2025, and November 2, 2024, (iv) the Condensed Consolidated Statements of Cash Flows for the nine months ended November 1, 2025, and November 2, 2024, (v) the Condensed Consolidated Statements of Changes in Shareholders’ Equity for the three and nine months ended November 1, 2025, and November 2, 2024, and (vi) the Notes to Condensed Consolidated Financial Statements. | ||||
| 104 | The cover page from our Quarterly Report on Form 10-Q for the third quarter of fiscal 2026, filed with the SEC on December 5, 2025, formatted in iXBRL (included as Exhibit 101). | ||||
(1)The certifications in Exhibit 32.1 and Exhibit 32.2 to this Quarterly Report on Form 10-Q shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to liability of that section and shall not be incorporated by reference into any filing or other document pursuant to the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing or document.
Pursuant to Item 601(b)(4)(iii) of Regulation S-K under the Securities Act of 1933, as amended, the registrant has not filed as exhibits to this Quarterly Report on Form 10-Q certain instruments with respect to long-term debt under which the amount of securities authorized does not exceed 10% of the total assets of the registrant. The registrant hereby agrees to furnish copies of all such instruments to the SEC upon request.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| BEST BUY CO., INC. (Registrant) | ||||||||
Date: December 5, 2025 | By: | /s/ CORIE BARRY | ||||||
Corie Barry Chief Executive Officer | ||||||||
Date: December 5, 2025 | By: | /s/ MATTHEW BILUNAS | ||||||
Matthew Bilunas Senior Executive Vice President, Chief Financial Officer & Enterprise Strategy | ||||||||
Date: December 5, 2025 | By: | /s/ MATHEW R. WATSON | ||||||
Mathew R. Watson Senior Vice President, Finance – Controller and Chief Accounting Officer | ||||||||
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