Best Buy Q4 EPS Beats, Operating Income Triples to $721 M
Best Buy reported Q4 adjusted EPS of $2.61, beating estimates by $0.14 on $13.814 billion in sales, while operating income surged to $721 million (5.2% margin) from $217 million a year ago. The board approved a 1% quarterly dividend hike to $0.96 per share and plans $300 million in FY27 share repurchases.
1. Earnings Results
Best Buy posted adjusted EPS of $2.61 for Q4, surpassing the $2.47 consensus, on sales of $13.814 billion versus $13.877 billion expected. Quarterly gross profit totaled $2.882 billion, with gross margin holding steady at 20.9% year-over-year.
2. Margin Expansion and Tariff Benefit
Operating income jumped to $721 million from $217 million a year earlier, lifting operating margin to 5.2% from 1.6%. CEO Corie Barry noted a recent Supreme Court ruling has temporarily reduced the company’s tariff rate, easing product costs and supporting margin stability.
3. Shareholder Returns and Outlook
The board approved a 1% increase in the regular quarterly dividend to $0.96 per share, payable April 14, 2026, and plans approximately $300 million in share repurchases during fiscal 2027. The company exited the quarter with $1.738 billion in cash and equivalents.