Best Buy (BBY) 10-K risk factor changes: FY2026 vs FY2025

The risks are categorized using the following headings: external, strategic, operational, [removed: regulatory] [added: regulatory, compliance] and legal, and financial and market.

Consumer demand for the products and services that we offer could [removed: be] [added: be, or could continue to be,] affected by a number of factors, including: real GDP growth, inflation, recession, consumer confidence, employment levels, [added: effects of government closures,] cost of living, [added: uncertainty over the availability of government benefits,] tax rates, availability of consumer financing, interest rates, housing market conditions, foreign currency exchange rates, the price of oil, gas and other [removed: commodities,] [added: commodities] and other macroeconomic trends.

[removed: whether or not they] [added: - whether consumers] make a purchase;

[removed: how] [added: - how] frequently [removed: they] [added: consumers] upgrade or replace their devices;

[removed: their] [added: - consumers'] choice of brand, model or price-point; and

[removed: their] [added: - consumers'] appetite for complementary services (for example, My Best Buy Plus™ or My Best Buy Total™ membership).

We are subject to specific pressures that may increase our product prices, including high consumer demand, inflation, [removed: tariffs] [added: governmental actions (e.g., tariffs)] and supply chain disruptions.

Any economic factors or circumstances resulting in higher [added: costs for] transportation, labor, [removed: insurance costs,] [added: insurance,] healthcare [removed: costs] or [removed: commodity prices] [added: commodities] can increase our [removed: cost of sales and] operating, selling, general and administrative [removed: expenses] [added: costs] and otherwise materially adversely affect our financial results.

Geopolitical tensions, both domestic and international, including issues related to trade routes, political instability and divisiveness, the potential implementation of more restrictive trade policies, [removed: higher tariffs] [added: tariff increases and/or volatility, the realignment of alliances] or the renegotiation of existing trade agreements could [added: continue to] have a material adverse impact on our business.

While we directly import approximately [removed: 2%] [added: 1%] to 3% of our overall assortment, our [removed: complex] [added: global] supply chain [added: for consumer electronics] is heavily reliant on vendor imports from [removed: China and Mexico, which we currently estimate make up approximately 55% and 20%, respectively, of the] [added: foreign countries (including] products [removed: we purchase.][added: sourced from China, Mexico and Southeast Asia).]

Ongoing or emerging conflicts, including those in [removed: Ukraine,] the Middle [removed: East] [added: East, Ukraine] and the South China Sea, may continue to impact fuel prices, inflation, the global supply chain, cybersecurity and other macroeconomic conditions, which may further adversely affect global economic growth, consumer confidence and demand for our products and services.

[removed: Additionally,] [added: For example,] any further deterioration of relations between Taiwan and China, the resulting actions taken, the response of the international community and other factors affecting trade with China or political or economic conditions in Taiwan could disrupt the manufacturing and distribution of products or hardware components in the region, such as semiconductors and television panels sourced from Taiwan or the broader array of products sourced from China.

Catastrophic [removed: events, including the effects of climate change,] [added: events] could adversely affect our operating results.

[removed: power loss, telecommunications failures, or software and hardware malfunctions;] [added: - power outages, computer] and [added: telecommunications failures;]

[removed: Three] [added: The frequency and severity] of [added: natural disasters or extreme weather events (such as storms, blizzards, extreme temperatures, earthquakes, hurricanes, floods, fires and droughts) are increasing in many of] our [added: key markets, particularly in our three] largest states by total sales (California, Texas and [removed: Florida) are particularly vulnerable to natural disasters and extreme weather conditions.][added: Florida).]

We operate in a highly and increasingly dynamic industry sector fueled by constant technological [removed: innovation] [added: innovation, advancement] and disruption, including [removed: most recently by] the [removed: proliferation] [added: rapid integration] of artificial intelligence (“AI”) [removed: technologies.][added: into consumer products.]

[removed: failure] [added: - failure] to offer, or inability to secure an adequate supply of, the products and services that our customers want;

[removed: excess] [added: - excess] inventory, which may require heavy [removed: discounting] [added: discounting, liquidation] or [removed: liquidation;][added: storage;]

[removed: delays] [added: - delays] in adapting our merchandising, marketing or supply chain capabilities to accommodate changes in product trends; and

[removed: damage] [added: - damage] to our brand and reputation.

[removed: While we] [added: We] constantly strive to offer consumers the best [removed: value, the retail sector is] [added: value in a] highly [removed: competitive.][added: competitive retail sector.]

We compete against many local, regional, national and international retailers (both online and brick and mortar), as well as against some of our vendors and mobile network carriers that [removed: market] [added: are leveraging] their [removed: products directly] [added: own direct-to-customer channels] to [removed: consumers.][added: market and sell products.]

[removed: Our ability to offer competitive delivery times and delivery costs depends on many factors and our failure] [added: Failure] to [removed: successfully] manage these factors [removed: and offer] [added: effectively while offering] competitive delivery options could negatively impact [added: our profit margins and] the demand for our [removed: products and our profit margins.][added: products.]

Because our [removed: business] strategy is based on offering superior levels of customer service and a full range of [removed: services to complement the products we offer,] [added: complementary services,] our cost structure [removed: might] [added: may] be higher than some of our competitors, [removed: and this, in conjunction with price transparency, could put pressure on our margins.][added: creating additional margin pressure.]

Further, as our competitors develop and expand their strategic use of AI, our operations and profitability could be adversely impacted if we fail to execute or maintain our own focused AI strategy [removed: enabling technology] [added: that drives technological] advancement and innovation.

As these and related competitive factors [removed: evolve,] [added: evolve and progress,] we may experience material adverse pressure on our revenue and profitability.

The turnover rate in the retail sector is relatively high, [removed: and there is] [added: creating] an ongoing need to recruit and train new employees.

[removed: Factors that affect our] [added: Our] ability to maintain sufficient numbers of qualified employees [removed: include, for example,] [added: depends on a number of factors, such as] employee engagement, our reputation, our ability to train and develop our employees, our ability to connect with and promote available talent pools, our development and maintenance of [removed: employer-desired] [added: employee-desired] policies and practices, unemployment rates, competition from other employers, availability of qualified personnel and our ability to offer appropriate compensation and benefit packages.

[removed: Our] [added: Further, our] policies and practices may be affected by, or require changes in response to, [added: evolving] legal and regulatory restrictions on policies related to [removed: inclusion and belonging,] employee [removed: engagement and climate change,] [added: engagement,] which may further impact our ability to retain and engage qualified employees.

In addition, significant turnover of our executive team or other employees in key positions with specific knowledge relating to our operations and industry may negatively impact our operations and financial [removed: results.][added: results and potentially have cascading effects on our employees.]

We operate in a competitive labor [removed: market] [added: market,] and there is a risk that market increases in compensation and employer-provided benefits could have a material adverse effect on our profitability.

We may [removed: also] be subject to continued market pressure to increase employee hourly wage rates and [removed: increased cost pressure on] employer-provided [removed: benefits.][added: benefits, especially as the cost of living increases.]

We offer a full range of services that complement our product offerings, including consultation, delivery, [removed: design,] [added: health-related services,] installation, memberships, [removed: protection plans,] repair, set-up, technical support and [removed: health, safety and caregiving monitoring and support.][added: warranty-related services.]

The strategy and execution of our service offerings are subject to incremental [removed: risks.][added: risks, such as:]

[removed: sustained] [added: - a sustained] increase in consumer desire to purchase product offerings online and through mobile applications, impacting our ability to sell ancillary services;

[removed: pressure] [added: - increased labor expenses and challenges in forecasting staffing needs, as well as pressure] on traditional labor models to meet [removed: the] evolving [removed: landscape of offerings and] customer [removed: needs;][added: expectations;]

[removed: increased reputational risk of] [added: -] bad actors posing as Geek Squad and/or customer care;

[removed: increased risk of] [added: -] errors or omissions in the fulfillment of services;

[removed: unpredictable] [added: - unpredictable] extended warranty failure rates and related expenses;

[removed: employees having access to] [added: -] customer [removed: devices, including the information held on those devices, which increases] [added: devices in] our [removed: risk given] [added: possession and] the [added: related] responsibility for the security of those devices and the privacy of the data they [removed: hold while in our possession;][added: hold;]

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Consequently, our financial results are highly sensitive to changes in trade policies, tariffs and cross-border logistics.

The scope, timing, and implementation of these policies remains uncertain and may result in new or modified tariff regimes, additional regulatory requirements, or further trade friction with U.S. trading partners.

The uncertainty caused by ongoing tariff volatility creates challenges for planning inventory, pricing and supply chain strategies, which could continue to impact our cost structure, supply chain stability and overall financial results.

Additionally, conflict in the Middle East, and the resulting disruption of transit through the Persian Gulf and the Strait of Hormuz, continues to disrupt global supply chain flows and impact fuel prices.

Furthermore, these conflicts or other international policies and efforts may impact, or continue to impact, our critical international trade routes, such as the Panama Canal, the Red Sea and the Suez Canal.

Such disruptions may increase shipping times or costs, which could adversely affect our operations and financial results.

Geopolitical tensions may provoke further retaliatory actions by our trading partners that may increase costs, disrupt our supply chain and/or impact our business operations.

China maintains significant control over the majority of rare earth elements, which are essential elements in many electronic devices.

Should China reinstate its export ban on rare earth elements or take other actions that restrict U.S. supply of these minerals, it would impact both the consumer electronics we sell and our business’s underlying technological infrastructure.

Catastrophic events, including those driven or intensified by climate change, pose a growing risk to our operating results and financial performance.

We may experience other catastrophic events beyond natural disasters, including pandemics, civil unrest, power loss, telecommunications failures, software and hardware malfunctions, terrorism (including related cyber threats) and other acts of violence.

Additionally, the locations where we do business could continue to be the subject of unrest and national attention, which impacts our ability to operate.

The adverse effects of these events may be amplified should multiple events occur simultaneously, such as a natural disaster during a pandemic.

Such events may prevent our workforce and/or customers from reaching our stores and properties, disrupt segments of our supply chain and distribution network or impact critical third-party services.

These disruptions may impact our ability to procure goods or services necessary for operating our business and may affect our information technology systems, limiting our ability to transact with customers and fulfill orders.

Catastrophic events could result in significant physical damage to, or closure of, our facilities.

They may also necessitate preventative investments in our facilities and infrastructure.

Moreover, insufficient infrastructure investment may increase the risk that large-scale disruptive events could impact our critical infrastructure, potentially having a material adverse impact on our operations and financial performance.

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Shoppers are increasingly price-conscious when making discretionary purchases.

At the same time, online and multi-channel retailers are prioritizing fast, low-cost delivery options, including curbside pickup and guaranteed shipping times.

Our ability to remain competitive also depends on effectively maintaining and growing our customer base and accurately forecasting their spending levels.

An inability to drive traffic to physical and digital channels or to maintain brand relevance with target audiences could pose both an operational and financial risk.

Additionally, failure to consistently meet customer expectations across stores, in-home services and online platforms could negatively impact our financial performance.

Inability to quickly adapt to changes in customer behavior (e.g., AI-driven search, AI shopping bots) could have an adverse impact our financial results.

Competition is becoming increasingly diverse, including through the expansion of retail media networks, such as our retail media network, Best Buy Ads, which competes for brand marketing spend and advertiser attention.

Additionally, as our Best Buy Marketplace platform expands, where third-party sellers can sell products on our platform, we face the added challenge of competing not only with external sellers but also with third-party sellers on our own platform.

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In addition, prolonged external stressors (e.g., from violence, political unrest or customer behavior) may affect the mental wellbeing of employees and lead to fatigue, reduced engagement and/or attrition.

- margin pressure from membership offerings;

- pressure from lower-cost competitors that could erode the value proposition of our premium services;

- the continual need to maintain and upgrade the technology infrastructure supporting our services;

- potential claims liability due to employees traveling in company vehicles and/or working in customer homes;

- growing dependence on third parties (e.g., reduced control over subcontractor regulatory compliance and adherence to our standards, liability for third parties working on our behalf); and

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While we source products we sell from a wide variety of domestic and international vendors, a significant portion of our merchandise comes from a relatively small group of key suppliers.

Globally, the cost and availability of memory components have been, and may continue to be, affected by industry-wide supply constraints.

While we work with vendors to adjust product and pricing strategies, these actions may not fully offset higher costs and inventory constraints, which may impact our margins and financial performance.

As we grow certain areas of the business (including Best Buy Marketplace, where there is a risk that third-party sellers, products, partners and services may fail to meet customer expectations), our reputation may be negatively affected.

Moreover, the consumer electronics we sell and our underlying technological infrastructure are dependent on rare earth elements, predominantly processed in China.

Recently passed or proposed tariffs involving these countries could have an adverse impact on our operations.

Any further changes in, or uncertainty surrounding, trade policies with these countries, including tariffs on products and parts imported by us or our vendors, as well as any international retaliatory actions, could increase costs, disrupt our supply chain and/or impact the availability of underlying technology critical to our operations.

Additionally, changes in, or uncertainty surrounding, policies or efforts that may affect the flow of trade, especially those impacting critical international trade routes, such as the Panama Canal and the Suez Canal, could potentially cause disruption to the global supply chain and may adversely affect our operations and financial results.

For example, attacks on cargo ships in the Red Sea, catalyzed by tensions in the Middle East, continue to disrupt global trade flows and shipping capacity.

These trade restrictions and any associated political uncertainty surrounding international trade measures and international relations may affect market stability and consumer confidence.

The risk and actual occurrence of various catastrophic events could have a material adverse effect on our financial performance.

Events that affect our properties, supply chain, partners, workforce or customers may consist of, or be caused by, for example:

natural disasters or extreme weather events (such as storms, blizzards, extreme temperatures, earthquakes, hurricanes, floods, fires and droughts), including those related to, or exacerbated by, climate change;

diseases or pandemics;

terrorism (including related cyber threats), civil unrest, violent acts or other conflicts.

The number and severity of certain catastrophic events is increasing in many of our markets.

Such events can adversely affect our workforce and prevent employees and customers from reaching our stores and properties.

Catastrophic events can also disrupt portions of our supply chain, distribution network and third-party services, and may impact our ability to procure goods or services required for operating our business.

Such events can also affect our information technology systems, resulting in disruption to various aspects of our operations, including our ability to transact with customers and fulfill orders.

The adverse effects of any such catastrophic event would be exacerbated if experienced at the same time as another unexpected and adverse event, such as a pandemic.

Natural disasters and climate-related events in these states, and other areas where our sales and operations are concentrated, could result in significant physical damage to, or closure of, our facilities and may require upgrades to our facilities and infrastructure.

Additionally, heightened violence and crime in or around our stores, customer homes or businesses where we are performing services may further jeopardize the safety and security of our workforce and customers as well as the general operation of our stores.

Further, social unrest/tension, and any related potential for violence, may impact our workforce, customers, properties and the communities where we operate.

If our customers, employees and shareholders do not perceive our response to be appropriate or adequate, we could suffer damage to our reputation and brand, which could adversely affect our business.

Price is of great importance to most customers, and price transparency and comparability continues to increase.

Digital technology enables consumers to compare prices on a real-time basis, putting additional pressure on us to maintain competitive prices.

Competition is becoming increasingly diverse, including in the advertising revenue space and with the proliferation of marketplace platforms offering products at increasingly lower prices.

The retail sector continues to experience increased sales initiated online and using mobile applications, as well as online sales for both in-store or curbside pick-up.

Online and multi-channel retailers continue to focus on delivery services, with customers increasingly seeking faster, guaranteed delivery times and low-cost or free shipping.

Our need to implement corresponding adjustments within our labor model and compensation and benefit packages could have a material adverse impact on the profitability of our business.

The execution of our strategy relating to certain products and services (including health technology, services and logistics) brings business, financial and regulatory risks.

In the health sector, we offer a range of products and services, including, for example, Personal Emergency Response (PERS) and Remote Patient Monitoring (RPM) technology and services.

As we refine existing offerings and introduce new offerings, we must navigate a complex, dynamic regulatory and technological environment, which may subject us to additional operational, financial and reputational risks.

Our customers may not like our new value propositions, and we may be subject to claims if customers of these offerings experience service disruptions, failures or other issues.

Our health sector offerings and the customers we serve bring us into scope for many significant regulatory requirements, including those enforced by the U.S. Food and Drug Administration (FDA), the Centers for Medicaid and Medicaid Services (CMS), State Medicaid Agencies and the Federal Communications Commission (FCC).

Additionally, the collection, storage, use and disclosure of personal information subjects us to privacy and security requirements, such as the Health Insurance Portability and Accountability Act (HIPAA), the United Kingdom’s General Data Protection Regulation (GDPR, as retained in United Kingdom law) and numerous state data privacy laws.

The risk accompanied with operating in the health sector may lead to a range of consequences, including, but not limited to, customer complaints, individual consumer claims or class actions, product recalls, temporary bans on products, stoppages at production facilities, orders to stop providing services, remediation costs, corrective action plans, fines, penalties, regulatory enforcement actions, potential loss of business and impairment of our ability to continue participation in government healthcare programs.

These and other related issues could have a material adverse impact on our financial results and reputation.

These risks could include, for example:

inability to sustain and operate a technology infrastructure sufficient to support our services growth;

ongoing pressure on margins from our Best Buy membership offerings, and the risk that increased volumes will not fully compensate for lower margins;

increased labor expenses and inability to accurately forecast staffing levels to meet customer needs and demands;

responsibility for third parties that fail to meet our standards or fail to comply with applicable labor and independent contractor regulations;

employees in transit using company vehicles to visit customer locations and employees being present in customer homes, which may increase our scope of liability;

[removed: [Refer] [added: Refer] to [removed: Item] [added: [Item] 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations, in our Form 10-K for the fiscal year ended February [removed: 3, 2024,] [added: 1, 2025](https://www.sec.gov/ix?doc=/Archives/edgar/data/764478/000076447825000007/bby-20250201x10k.htm#),] for discussion of the results of operations for the year ended February [removed: 3, 2024,] [added: 1, 2025,] compared to the year ended [removed: January 28, 2023,] [added: February 3, 2024,] which is incorporated by reference [removed: herein.](http://www.sec.gov/ix?doc=/Archives/edgar/data/764478/000076447824000010/bby-20240203x10k.htm)][added: herein.]

The Domestic segment is comprised of our operations in all states, districts and territories of the U.S. and our Best Buy Health business, and includes the brand names Best Buy, Best Buy Ads, Best Buy Business, Best Buy Essentials, Best Buy Health, [removed: Current Health,] [added: Best Buy Marketplace,] Geek Squad, Imagine That, Insignia, Lively, [added: Jitterbug,] My Best Buy, My Best Buy Memberships, Pacific Kitchen and Home, TechLiquidators and Yardbird; and the domain names bestbuy.com, [removed: currenthealth.com,] lively.com, techliquidators.com and yardbird.com.

Our International segment is comprised of all operations in Canada under the brand names Best Buy, Best Buy [added: Ads, Best Buy Business, Best Buy] Express, Best Buy [added: Marketplace, Best Buy] Mobile, Geek [removed: Squad] [added: Squad, Insignia] and TechLiquidators and the domain names bestbuy.ca and techliquidators.ca.

Fiscal [removed: 2025,] [added: 2026,] fiscal [removed: 2024] [added: 2025] and fiscal [removed: 2023] [added: 2024] ended on [added: January 31, 2026,] February 1, 2025, [added: and] February 3, 2024, [removed: and January 28, 2023,] respectively.

Fiscal [removed: 2025] [added: 2026] and fiscal [removed: 2023] [added: 2025] each included 52 weeks.

Comparable sales is a metric used by management to evaluate the performance of our existing [removed: stores, websites] [added: stores] and [removed: call centers] [added: digital offerings] by measuring the change in net sales for a particular period over the comparable prior period of equivalent length.

[removed: Revenue] [added: Comparable sales excludes revenue] from stores closed more than 14 [removed: days, including] [added: days (including] but not limited to relocated, remodeled, expanded and downsized stores, or stores impacted by natural [removed: disasters, is excluded from comparable sales] [added: disasters)] until at least 14 full months after [removed: reopening.][added: 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).]

We believe comparable sales is a meaningful supplemental metric for investors to evaluate revenue performance resulting from growth in existing [removed: stores, websites] [added: stores] and [removed: call centers] [added: digital offerings] versus the portion resulting from opening new stores or closing existing stores.

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 [added: selling, general and administrative expenses (“SG&A”), consolidated adjusted SG&A rate, consolidated adjusted] operating income, consolidated adjusted operating income rate, consolidated adjusted effective tax rate and consolidated adjusted diluted earnings per share (“EPS”).

Generally, our non-GAAP financial measures include adjustments for items such as restructuring charges, goodwill and acquired intangible asset impairments, [added: certain long-lived asset impairments,] price-fixing settlements, gains and losses on [removed: sales] [added: 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.

Refer to the Non-GAAP Financial Measures section below for detailed reconciliations of items impacting consolidated adjusted [added: SG&A, consolidated adjusted] operating income, consolidated adjusted effective tax rate and consolidated adjusted diluted EPS in the presented periods.

[removed: We are targeting a mid-fiscal 2026 launch for our new] [added: During fiscal 2026, we launched] Best Buy Marketplace [removed: (“Marketplace”)] within our Domestic segment, which we believe will complement our existing product assortment with access to a broader range of products offered by [removed: Marketplace] [added: marketplace] sellers.

We believe this will unlock potential new commission and advertising revenue, without requiring [removed: our investment in inventory.][added: inventory investment.]

In recent years, [added: our retail media network,] Best Buy [removed: Ads] [added: Ads,] has primarily served our merchandise vendors.

[removed: Our third strategic priority for] [added: In] fiscal [removed: 2026 is to] [added: 2027, we will] continue [added: to prioritize] our longstanding commitment to operational efficiency by identifying cost reductions and other savings to help fund investment capacity for new and existing initiatives and offset financial pressures facing our business.

For [removed: more] [added: additional] information regarding [removed: the potential impacts of tariffs on our business, refer to] [added: tariff‑related risks, see] Item 1A, *Risk Factors*, [removed: of] [added: in] this Annual Report on Form [removed: 10-K.][added: 10‑K.]

| | [removed: 2025] | | [added: 2026] | | [removed: 2024] | | | | [removed: 2023] [added: 2025] | | | [added: | | | 2024 | | |]

| Revenue | [added: | |] $ | [removed: 41,528] [added: 41,691] | | | [added: | |] $ | [removed: 43,452] [added: 41,528] | | | [added: | |] $ | [removed: 46,298] [added: 43,452] | |

| Revenue % change | | [removed: (4.4)] | [added: 0.4 | |] % | | | [removed: (6.1)] | [added: (4.4) | |] % | | | [removed: (10.6)] | [added: (6.1) | |] % |

| Comparable sales % change | | [removed: (2.3)] | [added: 0.5 | |] % | | | [removed: (6.8)] | [added: (2.3) | |] % | | | [removed: (9.9)] | [added: (6.8) | |] % |

| Gross profit | [added: | |] $ | [removed: 9,385] [added: 9,373] | | | [added: | |] $ | [removed: 9,603] [added: 9,385] | | | [added: | |] $ | [removed: 9,912] [added: 9,603] | |

| Gross profit as a % of [removed: revenue(1)] [added: revenue] | | [added: |] 22.6 | [added: |] % | | | [removed: 22.1] | [added: 22.6 | |] % | | | [removed: 21.4] | [added: 22.1 | |] % |

| SG&A | [added: | |] $ | [removed: 7,651] [added: 7,623] | | | [added: | |] $ | [removed: 7,876] [added: 7,651] | | | [added: | |] $ | [removed: 7,970] [added: 7,876] | |

| SG&A as a % of revenue(1) | | [removed: 18.4] | [added: 18.3 | |] % | | | [removed: 18.1] | [added: 18.4 | |] % | | | [removed: 17.2] | [added: 18.1 | |] % |

| Restructuring charges | [added: | |] $ | [removed: (3)] [added: 190] | | | [added: | |] $ | [removed: 153] [added: (3)] | | | [added: | |] $ | [removed: 147] [added: 153] | |

| Operating income | [added: | |] $ | [removed: 1,262] [added: 1,389] | | | [added: | |] $ | [removed: 1,574] [added: 1,262] | | | [added: | |] $ | [removed: 1,795] [added: 1,574] | |

| Operating income as a % of revenue | | [removed: 3.0] | [added: 3.3 | |] % | | | [removed: 3.6] | [added: 3.0 | |] % | | | [removed: 3.9] | [added: 3.6 | |] % |

| Net earnings | [added: | |] $ | [removed: 927] [added: 1,069] | | | [added: | |] $ | [removed: 1,241] [added: 927] | | | [added: | |] $ | [removed: 1,419] [added: 1,241] | |

| Diluted EPS | [added: | |] $ | [removed: 4.28] [added: 5.04] | | | [added: | |] $ | [removed: 5.68] [added: 4.28] | | | [added: | |] $ | [removed: 6.29] [added: 5.68] | |

[removed: Restructuring charges] [added: Charges] in fiscal [removed: 2025 were] [added: 2024] primarily [removed: comprised of adjustments to employee termination benefits] related to [removed: previously planned organizational changes and higher-than-expected employee retention associated with] an enterprise-wide [added: restructuring] initiative that commenced in the fourth quarter of fiscal 2024.

The impairment [removed: primarily arose from] [added: reflects] downward revisions of our revenue growth rates and margin rates compared to [removed: projections used] [added: previous projections,] in [removed: prior years.][added: part due to pressures in the Medicaid and Medicare Advantage markets.]

Operating income rate [removed: decreased] [added: increased] in fiscal [removed: 2025,] [added: 2026,] primarily due to [removed: the] [added: lower] goodwill [removed: impairment] and [removed: unfavorable SG&A rate,] [added: intangible asset impairments,] partially offset by [removed: favorability in the gross profit rate and lower] [added: higher] restructuring charges.

[removed: Revenue, gross profit rate, SG&A] [added: In fiscal 2026, revenue changes were primarily driven by our International segment,] and operating income rate changes [removed: in fiscal 2025] were primarily driven by our Domestic segment.

| | [added: | | January 31, 2026 | | | | | |] February 1, 2025 | | | | [added: | |] February 3, 2024 | | | [removed: | January 28, 2023 | | |]

| Best Buy | | [removed: 891] | [added: 886] | | | [removed: 901] | | | [added: 891] | [removed: 925] | | [added: | | | 901 | | |]

| [removed: Best Buy] Outlet Centers | | [removed: 25] | [added: 18] | | | [removed: 22] | | | [added: 25] | [removed: 19] | | [added: | | | 22 | | |]

| Pacific Sales | | [added: |] 20 | | | | [added: | |] 20 | | | | [added: | |] 20 | | [added: |]

| Yardbird | | [removed: 21] | [added: 2] | | | [removed: 22] | | | [added: 21] | [removed: 14] | | [added: | | | 22 | | |]

| Total Domestic stores | | [removed: 957] | [added: 926] | | | [removed: 965] | | | [added: 957] | [removed: 978] | | [added: | | | 965 | | |]

| Canada Best Buy stores | | [removed: 129] | [added: 130] | | | [removed: 128] | | | [added: 129] | [removed: 127] | | [added: | | | 128 | | |]

Comparable sales includes revenue from stores operating for at least 14 full months; sales initiated on a website, app or virtual store; advertising revenue; commercial sales; credit card revenue; gift card breakage; marketplace commission revenue; and sales of merchandise to wholesalers and dealers.

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.

[Table of Contents](#ia393e64e9f854158bf5e98b85077b319_10)

Our multi-year strategy remains consistent, which is to strengthen our position in retail as a leading omnichannel destination for technology, while at the same time scaling new profit streams.

Our fiscal 2027 priorities and resource allocation philosophy also remain consistent as we build upon the momentum from fiscal 2026.

Those priorities are:

*Drive omni-channel experiences that resonate with customers*

Starting with our digital experiences, we have already activated on ways to bring our products to life through artificial intelligence (“AI”) platforms, which will continue to grow during fiscal 2027.

We are also partnering with various platform providers to create a more seamless agentic shopping journey, making it easier for customers to both find and purchase directly from our product catalog.

Other fiscal 2027 digital priorities include strengthening customer recognition and personalization, increasing customer adoption and engagement with the Best Buy App and driving digital conversion for categories like major appliances and home theater.

In our physical stores, we are continuing to improve the customer experience while also using our space more effectively – often in partnership with our vendors.

*Scaling Best Buy Ads and Best Buy Marketplace*

In fiscal 2027, we anticipate continuing to grow Best Buy Ads through existing advertisers as well as other areas of opportunity, including advertising agencies and demand-side platforms.

In order to support this growth, we are investing in our technology capabilities, marketing and headcount across our sales, operations and technology teams.

[Table of Contents](#ia393e64e9f854158bf5e98b85077b319_10)

In fiscal 2027, we plan to continue to expand our third-party seller count, while investing in technology, advertising and our marketplace team to support future growth.

*Drive efficiencies and identify cost reductions that are crucial to helping to fund investment capacity and offset pressure in our business*

During fiscal 2026, U.S. tariffs were imposed under the International Emergency Economic Powers Act (the “IEEPA”) that applied to certain imported private‑label branded and direct import products that we sold during the year or held in inventory as of the end of the fiscal year.

While we directly import approximately 1% to 3% of our overall assortment, our supply chain is highly dependent on vendor imports, including product sourced from China, Mexico and Southeast Asia.

On February 20, 2026, the U.S. Supreme Court ruled that tariffs imposed under the IEEPA were unauthorized.

The ruling did not address potential refunds.

Following the ruling, various actions and proceedings have occurred involving U.S. trade authorities and the U.S. Court of International Trade relating to the administration, collection and potential refund of tariffs imposed under the IEEPA.

The outcome of these actions, including the timing, process and ultimate recoverability of any refunds, remains uncertain.

In addition, subsequent to the U.S. Supreme Court’s ruling, the U.S. government has initiated further actions under existing trade authorities to evaluate foreign trade practices, which could result in the imposition of additional tariffs or other trade measures.

We will continue to evaluate the potential effects of these developments on our financial position, results of operations and cash flows.

[Table of Contents](#ia393e64e9f854158bf5e98b85077b319_10)

In fiscal 2026, our comparable sales returned to growth and we stabilized our market share position while navigating a complex and often evolving tariff situation.

We launched and began to scale Best Buy Marketplace within our Domestic segment and grew our retail media network, Best Buy Ads.

We believe we were able to both make investments in our strategic initiatives and expand our operating margin through a combination of disciplined expense management and efficiency optimization efforts.

| | | | | | | | | | | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| Goodwill and intangible asset impairments | | | $ | 171 | | | | | $ | 475 | | | | | $ | \- | |

In fiscal 2026, we generated $41.7 billion in revenue, compared to $41.5 billion in fiscal 2025, and our comparable sales grew 0.5%, primarily driven by comparable sales growth in computing and mobile phones, partially offset by comparable sales declines in home theater and appliances.

The comparable sales growth was due to a mix of new technology innovation, our continued focus on omni-channel customer experience and strong vendor partnerships.

Restructuring charges in fiscal 2026 were primarily related to 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.

Goodwill and intangible asset impairments in 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.

Diluted EPS increased in fiscal 2026, primarily due to higher net earnings driven by lower goodwill and intangible asset impairments, partially offset by higher restructuring charges.

Gross profit rate and SG&A rate changes in fiscal 2026 were driven by both of our segments.

We have operations in the U.S. and Canada.

Comparable sales includes revenue from stores, websites and call centers operating for at least 14 full months.

Revenue from online sales is included in comparable sales and represents sales initiated on a website or app, regardless of whether customers choose to have product delivered, or pick up product in store, curbside or at an alternative pick-up location.

Comparable sales also includes credit card revenue, gift card breakage, commercial sales and sales of merchandise to wholesalers and dealers, as applicable.

Comparable sales excludes 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).

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.

Beginning in the fourth quarter of fiscal 2025, we renamed our non-GAAP financial measures to adjusted financial measures; for example, consolidated non-GAAP operating income has been renamed to consolidated adjusted operating income.

The methodology for calculating these measures remains unchanged, and therefore any previously reported non-GAAP financial measures that are renamed to corresponding adjusted financial measures remain unchanged.

Our strategy for fiscal 2026 involves three key priorities:

*Omni-channel enhancements*

Starting with our digital experiences, we intend to improve our search and discover capability to make it easier for our customers to find what they want and need.

We will leverage artificial intelligence (“AI”) to launch an innovative new search experience across our websites and apps.

We will also leverage AI to enhance personalization, which we believe will drive both customer engagement and sales conversion.

In our physical stores, we expect to prioritize merchandising and store health and appearance updates over large-scale remodels, building on the insights we have gained from testing and changes implemented within our stores in recent years.

*Investment in new growth initiatives*

We have recently elevated our focus on Best Buy Ads, our retail media network, and we see fiscal 2026 as a pivotal year.

In fiscal 2026, we will continue this evolution and also expect Best Buy Ads to expand into other areas of opportunity.

In order to support this growth, we plan to invest in technology capabilities, our Best Buy Ads team and other new third-party partnerships.

*Operational efficiency*

‎

We enter fiscal 2026 facing significant uncertainty regarding the scope, timing and magnitude of tariffs we may experience for the products we sell and the consequent financial impact on our business.

In conjunction with our vendors, we will seek to mitigate the impact of tariffs on our business and our customers.

In fiscal 2025, we continued to manage our profitability through strong execution despite revenue declines.

As we entered the year, we were operating in an uneven environment and expected there would be industry pressure.

Our strategy was to focus on sharpening our customer experiences and industry positioning while optimizing our operating income rate.

(1)

| | | | | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| Goodwill impairment | $ | 475 | | | $ | \- | | | $ | \- | |

In fiscal 2025, we generated $41.5 billion in revenue, compared to $43.5 billion in fiscal 2024 that included approximately $735 million in revenue from the 53rd week.

Our comparable sales declined 2.3% in fiscal 2025, as we continued to operate in a challenged consumer electronics industry and experienced softer consumer demand.

While our comparable sales declined in fiscal 2025 in categories such as appliances, home theater and gaming, we grew comparable sales in our computing, tablet and services categories.

The goodwill impairment in fiscal 2025 was related to our Best Buy Health reporting unit.

Diluted EPS decreased in fiscal 2025, primarily due to lower operating income.

In fiscal 2024, we announced our collaboration with Bell Canada to rebrand 167 of its stores to Best Buy Express.

These stores, previously part of The Source, a wholly owned subsidiary of Bell Canada, are leased by Bell Canada and therefore excluded from our store count.

Under the arrangement, we provide the curated consumer electronics assortment and Geek Squad services, as well as supply chain, marketing and e-commerce support.

Bell Canada is the exclusive telecommunications services provider and is also responsible for the store operations.

By the end of fiscal 2025, all of the 167 stores have been rebranded.

Income tax expense decreased to $372 million in fiscal 2025 compared to $381 million in fiscal 2024, primarily due to the impact of decreased pre-tax earnings, partially offset by the impact of certain expenses that are not tax deductible.

[removed: Our] [added: Certain] cash, cash equivalents and restricted cash generate interest income that will vary based on changes in short-term interest rates.

Refer to Note 5, *Derivative Instruments*, and Note 7, *Debt*, of the Notes to Consolidated Financial Statements, included in Item 8, [removed: *Financial* *Statements] [added: *Financial Statements] and Supplementary Data*, of this Annual Report on Form 10-K for further information regarding our interest rate swaps.

As of [removed: February 1, 2025,] [added: January 31, 2026,] we had [removed: $1.9] [added: $2.0] 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 [removed: $1.4] [added: $1.5] billion.

As of [removed: February 1, 2025,] [added: January 31, 2026,] a 50-basis point increase in short-term interest rates would have led to an estimated [removed: $7] [added: $8] million increase in [removed: net] interest income, and conversely a 50-basis point decrease in short-term interest rates would have led to an estimated [removed: $7] [added: $8] million decrease in [removed: net] interest [removed: income.][added: income in fiscal 2026.]

Our primary objective in holding derivatives is to reduce the volatility of net earnings and cash flows, as well as [added: to reduce the volatility of] net asset value associated with changes in foreign currency exchange rates.

During fiscal [removed: 2025,] [added: 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.

We estimate that the foreign currency exchange rate fluctuations had an unfavorable impact on our revenue of approximately [removed: $85 million.][added: $16 million in fiscal 2026.]

The estimated impact of foreign exchange rate fluctuations on our net earnings in fiscal [removed: 2025] [added: 2026] was not significant.

[Table of Contents](#ia393e64e9f854158bf5e98b85077b319_10)

The Domestic segment is comprised of our operations in all states, districts and territories of the U.S. and our Best Buy Health business, and includes the brand names Best Buy, Best Buy Ads, Best Buy Business, Best Buy Essentials, Best Buy Health, [removed: Current Health,] [added: Best Buy Marketplace,] Geek Squad, Imagine That, Insignia, Lively, [added: Jitterbug,] My Best Buy, My Best Buy Memberships, Pacific Kitchen and Home, TechLiquidators and Yardbird; and the domain names bestbuy.com, [removed: currenthealth.com,] lively.com, techliquidators.com and yardbird.com.

Our International segment is comprised of all operations in Canada under the brand names Best Buy, Best Buy [added: Ads, Best Buy Business, Best Buy] Express, Best Buy [added: Marketplace, Best Buy] Mobile, Geek [removed: Squad] [added: Squad, Insignia] and TechLiquidators and the domain names bestbuy.ca and techliquidators.ca.

[removed: Computing] [added: - Computing] and Mobile Phones - computing (including desktops, notebooks and peripherals), mobile phones (including related mobile network carrier commissions), networking, tablets (including e-readers) and wearables (including smartwatches);

[removed: Consumer] [added: - Consumer] Electronics - digital imaging, health and fitness products, home theater (including home theater accessories, soundbars and televisions), portable audio (including headphones and portable speakers) and smart home;

[removed: Appliances] - [added: Appliances -] large appliances (including dishwashers, laundry, ovens and refrigerators) and small appliances (including blenders, coffee makers, vacuums and personal care);

[removed: Entertainment] - [added: Entertainment -] drones, gaming (including hardware, peripherals and [removed: software), movies,] [added: software, as well as augmented reality glasses),] toys, virtual reality and other software;

[removed: Services] - [added: Services - advertising,] delivery, health-related services, installation, [added: marketplace commissions,] memberships, repair, set-up, technical [removed: support and] [added: support,] warranty-related services; and

[removed: Other] - [added: Other -] other product offerings, including baby, food and beverage and outdoor living.

In fiscal [removed: 2025,] [added: 2026,] our 20 largest suppliers accounted for approximately 80% of the merchandise we purchased, with five suppliers – Apple, Samsung, HP, [removed: Sony and] LG [added: and Sony] – representing approximately 55% of total merchandise purchased.

We had [removed: 1,117] [added: 1,068] stores at the end of fiscal [removed: 2025] [added: 2026] throughout our Domestic and International segments.

We own or have the right to use valuable intellectual property such as trademarks, service marks and trade names, including, but not limited to, *Best Buy, Best Buy [removed: Ads,] [added: Ads*, *Best Buy Business,] Best Buy Essentials, Best Buy Express, Best Buy Health, Best Buy Marketplace, [removed: Current Health,] Geek Squad, Imagine That, Insignia, Jitterbug, Lively, Magnolia, My Best Buy, My Best Buy Memberships, Pacific Kitchen and Home, Pacific Sales, [removed: Rocketfish*, *TechLiquidators*,] [added: Rocketfish, TechLiquidators*,] *Yardbird* and our *Yellow Tag* logo.

[removed: We] [added: - We] aim to reduce our carbon emissions by minimizing energy usage, advocating for a cleaner grid and sourcing renewable energy.

[removed: We] [added: - We] monitor our water consumption across our business to identify and manage programs that lessen our dependence on water.

[removed: To] [added: - To] reduce waste and maximize resource efficiency, we continue [removed: our efforts] to [removed: build] [added: develop] a more sustainable supply chain by [removed: focusing on] certifying our supply chain locations [removed: as] [added: under the] TRUE zero [removed: waste.][added: waste program.]

We [removed: also] support the circular economy by keeping consumer products in use for as long as possible through our repair and trade-in services.

Further, across [removed: all] the products and services we procure, we seek to mitigate risk and enhance our partnership with suppliers and create value for all stakeholders through our Responsible Sourcing Program.

We are committed to helping [removed: teens] [added: young people] build brighter futures [removed: and increasing access] [added: by preparing them] to [removed: technology for the] [added: enter quality] tech-reliant careers of the future.

[removed: We believe] [added: Similarly,] our employee volunteer programs, like Geek Squad Academy, [removed: help to] spark excitement and interest in technology for young learners while engaging our employees’ unique technical expertise.

Best Buy [removed: also] serves as a fiscal sponsor of the Best Buy Foundation™, whose [removed: signature] Best Buy Teen Tech Center® program consists of a network of youth-centered community hubs where [removed: teens] [added: young people] can [removed: engage] [added: connect] with the latest technology, learn career [removed: skills,] [added: skills] and [removed: interact] [added: engage] with [removed: safe and] supportive [removed: mentors.][added: mentors in safe environments to ensure young people are prepared for the demands of today's economy.]

At the end of fiscal [removed: 2025,] [added: 2026,] we employed approximately [removed: 85,000] [added: 82,000] employees in the U.S. and Canada.

We believe in [removed: an inclusive work environment with] a culture of belonging where everyone feels valued, can thrive and has equal opportunities at all levels in the organization.

[removed: At the core] [added: One] of [removed: this environment are] our [removed: company values, which were founded decades ago and focus, in part, on what it means to] [added: values –] unleash the power of our [removed: people, as individuals, so] [added: people – emphasizes that] everyone can learn, grow and be the best version of themselves.

[removed: Additionally, we] [added: We] believe [added: that] by investing in employee training and [removed: development] [added: development,] we can create a better employee environment and increase productivity, retention and innovation that ultimately improves our overall company performance and brings value to stakeholders.

With the continued goal of creating learning opportunities that are tailored to the unique work of each role and a focus on solving the most important problems in our business, we expanded our variety of training experiences in fiscal [removed: 2025.][added: 2026.]

Examples of enhancements [removed: in fiscal 2025] include:

[removed: We] [added: - We] evolved our leadership development offerings to grow and transform Best Buy for its future.

[removed: We] [added: - We] enhanced our portfolio of risk, compliance and safety [removed: microlearning courses] [added: training and awareness initiatives] to enable employees to continuously develop safe, secure and ethical behaviors to protect the company.

We believe our ability to deliver on our purpose of enriching our customers’ lives [added: through technology] depends on ensuring our employees are living happy and healthy lives — both while at work and outside of work.

In fiscal [removed: 2025,] [added: 2026,] we introduced the following benefits to our employees:

Additionally, in fiscal [removed: 2025,] [added: 2026,] we continued our focus on:

[removed: Caregiver] [added: - Caregiver] support, including:

[removed: oAccess] [added: - Access] to Joshin, a support system for employees and their loved ones with a focus on disabilities and neurodivergence;

[removed: oPersonalized] [added: - Personalized] help in a time of great need through Wellthy, a program that helps with emergency housing, healthcare, substance abuse, complex eldercare issues and other moments of crisis;

[removed: oPay] [added: - Pay] continuation (paid leave) and caregiver pay so employees can care for themselves and their loved ones; [added: and]

[removed: oParental] [added: - Parental] leave for U.S. employees that provides eligible birth parents 100% pay for [added: up to] 10 weeks and eligible non-birth parents 100% pay for [added: up to] four weeks;

[removed: Up] [added: - Up] to $2,500 in financial assistance to employees experiencing personal hardship through the HOPE Fund – Helping Our People in Emergencies – in partnership with the Richard M.

Schulze Family Foundation; [added: and]

[removed: Mental] [added: - Mental] health support, including our commitment to raise awareness by equipping employees with training to notice issues in themselves or others, and then find [removed: help; and][added: help.]

For more information on CR&S matters, as well as human capital management, please see Best Buy’s Fiscal [removed: 2025] [added: 2026] Corporate Responsibility and Sustainability Report expected to be published later this year, at https://corporate.bestbuy.com/reports-and-resources.

[removed: For] [added: - For] information concerning Best Buy and its products, content and services, please visit: https://bestbuy.com.

[Table of Contents](#ia393e64e9f854158bf5e98b85077b319_10)

[Table of Contents](#ia393e64e9f854158bf5e98b85077b319_10)

Our focus on sustainable products centers on energy efficiency.

By assorting and promoting a broad range of energy-efficient electronics and appliances, we help customers reduce their environmental impact and energy costs throughout the life of the product.

Since launching our nationwide e-waste recycling program in 2008, we have continued to expand our industry leading efforts, and in fiscal 2026, we introduced new financial incentives, continued convenient mail-back options and enhanced home haul-away services to make recycling easier and more rewarding.

[Table of Contents](#ia393e64e9f854158bf5e98b85077b319_10)

We are refreshing our community commitments to focus on creating economic opportunity for young people as they chart their path from education to employment.

This includes working with a community of like-minded employers moving beyond traditional hiring models, valuing skills over credentials to build a dynamic, resilient workforce.

At the core of this inclusive environment are our company values, which were founded decades ago.

This included the LEAD Leadership Development program designed for corporate, supply chain and retail leaders, and expanding the Leadership Essentials program to build core leadership capabilities that help employees grow and succeed in leadership roles.

- We continued to invest in career growth and development for our employees through the Best Buy Altitude program, allowing leaders to develop their leadership skills and prepare for their next role, creating a talent bench behind high impact roles.

- We supported strategic business teams through focused functional learning by delivering structured onboarding, building training for new processes and systems, and providing targeted leadership development to enable growth and cultural transformation.

- We hosted a “Culture Weekend” with trained onboarding captains to train and prepare our seasonal workforce, while simultaneously helping foster a sense of belonging, connect staff and celebrate our company culture and values.

[Table of Contents](#ia393e64e9f854158bf5e98b85077b319_10)

- A Recognition Program providing peer-to-peer and leader recognition called Applause, allowing employees to be recognized for behaviors based on our company values.

- Enhanced Years of Service recognition, introducing new award options for completing 30 years of service, a lifetime employee discount after 35 years and a fully-paid sabbatical after 40 years.

- No Cost-No Debt College Degrees program for eligible full-time and part-time employees to supplement our existing tuition assistance and tuition discount programs.

- New features of our Employee Assistance Program, including Well-being Assessments, Well-being Coaching and an increased number of covered counseling sessions.

[Table of Contents](#ia393e64e9f854158bf5e98b85077b319_10)

Our Best Buy Health business has a dedicated leadership team that manages the day-to-day affairs of all aspects of its business, while receiving support from certain Best Buy enterprise capabilities.

Our focus on sustainable products centers on helping our customers reduce their impact on the environment through the products we sell.

We do this by providing a variety of energy-efficient products for our customers.

In fiscal 2025, we continued to evolve our industry-leading e-waste recycling program and found additional ways to incentivize recycling.

As of February 1, 2025, the Best Buy Foundation™ supported a network of 68 Best Buy Teen Tech Center® locations across the U.S. and Canada.

*‎*

This included new learning campaigns, leadership programs and expanded side-by-side trainings to support employee growth alongside their peers and leaders in condensed training formats.

These offerings included unique programs such as an enterprise-wide manager development program, a skill development program for our senior store leaders and several emerging talent programs including an officer readiness program.

We expanded our learning campaigns, reaching thousands of employees for new products to include a closer partnership with our vendors, more exposure for our employees and in-depth training in artificial intelligence to help customers with the products they use.

A well-being sabbatical for employees with five or more years of service that provides them an opportunity to take four weeks off (once every three years) to focus on their well-being.

Additional paid time off each year in recognition of tenure for full-time employees with 20 or more years of service, plus additional tiers for part-time employees at three and six years.

Five floating holidays and two fixed company holidays (Thanksgiving and Christmas Day) in place of seven fixed holidays for U.S. employees, to give flexibility for employees to celebrate what is meaningful to them.

Tuition assistance, including the expansion of our partnership schools that give eligible employees the opportunity to earn a degree with no out-of-pocket costs.

[removed: FORM 10-K][added: FORM 10-K]

| [removed: x] [added: x] | [added: | |] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | [added: | |]

For the fiscal year ended [removed: February 1, 2025][added: January 31, 2026]

| [removed: ¨] [added: ¨] | [added: | |] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | [added: | |]

[removed: ][added: ]

| Minnesota | | [added: |] 41-0907483 | [added: | |]

| (State or other jurisdiction of incorporation or organization) | | [added: |] (I.R.S. Employer Identification No.) | [added: | |]

| 7601 Penn Avenue South [removed: Richfield, Minnesota] [added: Richfield, Minnesota] | | [added: |] 55423 (Zip Code) | [added: | |]

| (Address of principal executive offices) | | | [added: | | |]

[removed: (612) 291-1000][added: (612) 291-1000]

| Title of each class | [added: | |] Trading Symbol | [added: | |] Name of exchange on which registered | [added: | |]

| Common Stock, $0.10 par value per share | [added: | |] BBY | [added: | |] New York Stock Exchange | [added: | |]

Yes [removed: ] [added: x] No [removed: ][added: ¨]

Yes [removed: ] [added: ¨] No [removed: ][added: x]

| Large Accelerated Filer [removed: ] | [added: | | | | | x | | |] Accelerated Filer [removed: ] | | [added: | | | | ¨ | | |] Non-accelerated Filer [removed: ] | [added: | | | | | ¨ | | |]

| [added: | | |] Smaller Reporting Company [removed: ] | | [added: | | | | ¨ | | | | | |] Emerging Growth Company [removed: ] | | [added: | | | | ¨ | | | | | |]

The aggregate market value of the voting and non-voting common equity held by non-affiliates of the registrant as of August [removed: 2, 2024] [added: 1, 2025] (the last business day of the registrant’s most recently completed second fiscal quarter) was approximately [removed: $15.8] [added: $11.9] billion, computed by reference to the price of [removed: $82.36] [added: $64.12] per share, the price at which the common equity was last sold on August [removed: 2, 2024,] [added: 1, 2025,] as reported on the New York Stock Exchange-Composite Index.

As of March [removed: 17, 2025,] [added: 16, 2026,] the registrant had [removed: 211,369,657] [added: 209,112,577] shares of its common stock, $0.10 par value per share, issued and outstanding.

Portions of the registrant's Definitive Proxy Statement relating to its [removed: 2025] [added: 2026] Regular Meeting of Shareholders ("Proxy Statement") are incorporated by reference into Part III.

Readers should review Item 1A, *Risk [removed: Factors,*] [added: Factors*,] of this Annual Report on Form 10-K for a description of important factors that could cause our future results to differ materially from those contemplated by the forward-looking statements made in this Annual Report on Form 10-K.

BEST BUY FISCAL [removed: 2025] [added: 2026] FORM 10-K

| [Item [removed: 1A.](#Item1ARiskFactors)] [added: 1A.](#ia393e64e9f854158bf5e98b85077b319_19)] | [added: | |] [Risk [removed: Factors.](#Item1ARiskFactors)] [added: Factors.](#ia393e64e9f854158bf5e98b85077b319_19)] | [removed: 8] | [added: | [9](#ia393e64e9f854158bf5e98b85077b319_19) | | |]

| [Item [removed: 1B.](#Item1BUnresolvedStaffComments)] [added: 1B.](#ia393e64e9f854158bf5e98b85077b319_22)] | [added: | |] [Unresolved Staff [removed: Comments.](#Item1BUnresolvedStaffComments)] [added: Comments.](#ia393e64e9f854158bf5e98b85077b319_22)] | [removed: 18] | [added: | [21](#ia393e64e9f854158bf5e98b85077b319_22) | | |]

| [Item [removed: 2.](#Item2Properties)] [added: 2.](#ia393e64e9f854158bf5e98b85077b319_28)] | [removed: [Properties.](#Item2Properties)] | [removed: 19] | [added: [Properties.](#ia393e64e9f854158bf5e98b85077b319_28) | | | [22](#ia393e64e9f854158bf5e98b85077b319_28) | | |]

| [Item [removed: 3.](#Item3LegalProceedings)] [added: 3.](#ia393e64e9f854158bf5e98b85077b319_31)] | [added: | |] [Legal [removed: Proceedings.](#Item3LegalProceedings)] [added: Proceedings.](#ia393e64e9f854158bf5e98b85077b319_31)] | [removed: 20] | [added: | [23](#ia393e64e9f854158bf5e98b85077b319_31) | | |]

| [Item [removed: 4.](#Item4MineSafetyDisclosures)] [added: 4.](#ia393e64e9f854158bf5e98b85077b319_34)] | [added: | |] [Mine Safety [removed: Disclosures.](#Item4MineSafetyDisclosures)] [added: Disclosures.](#ia393e64e9f854158bf5e98b85077b319_34)] | [removed: 20] | [added: | [23](#ia393e64e9f854158bf5e98b85077b319_34) | | |]

| | [added: | |] [Information about our Executive [removed: Officers](#ExecutiveOfficersoftheRegistrant).] [added: Officers.](#ia393e64e9f854158bf5e98b85077b319_37)] | [removed: 20] | [added: | [24](#ia393e64e9f854158bf5e98b85077b319_37) | | |]

| [Item [removed: 5.](#Item5)] [added: 5.](#ia393e64e9f854158bf5e98b85077b319_43)] | [added: | |] [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity [removed: Securities.](#Item5)] [added: Securities.](#ia393e64e9f854158bf5e98b85077b319_43)] | [removed: 21] | [added: | [25](#ia393e64e9f854158bf5e98b85077b319_43) | | |]

| [Item [removed: 6](#Item6).] [added: 6.](#ia393e64e9f854158bf5e98b85077b319_46)] | [removed: [\[Reserved\]](#Item6).] | [removed: 22] | [added: [\[Reserved\].](#ia393e64e9f854158bf5e98b85077b319_46) | | | [26](#ia393e64e9f854158bf5e98b85077b319_46) | | |]

| [Item [removed: 7.](#Item7)] [added: 7.](#ia393e64e9f854158bf5e98b85077b319_49)] | [added: | |] [Management's Discussion and Analysis of Financial Condition and Results of [removed: Operations.](#Item7)] [added: Operations.](#ia393e64e9f854158bf5e98b85077b319_49)] | [removed: 23] | [added: | [27](#ia393e64e9f854158bf5e98b85077b319_49) | | |]

| [Item [removed: 7A.](#Item7A)] [added: 7A.](#ia393e64e9f854158bf5e98b85077b319_103)] | [added: | |] [Quantitative and Qualitative Disclosures About Market [removed: Risk.](#Item7A)] [added: Risk.](#ia393e64e9f854158bf5e98b85077b319_103)] | [removed: 33] | [added: | [40](#ia393e64e9f854158bf5e98b85077b319_103) | | |]

| [Item [removed: 8.](#Item8)] [added: 8.](#ia393e64e9f854158bf5e98b85077b319_106)] | [added: | |] [Financial Statements and Supplementary [removed: Data.](#Item8)] [added: Data.](#ia393e64e9f854158bf5e98b85077b319_106)] | [removed: 34] | [added: | [41](#ia393e64e9f854158bf5e98b85077b319_106) | | |]

| [Item [removed: 9.](#Item9)] [added: 9.](#ia393e64e9f854158bf5e98b85077b319_172)] | [added: | |] [Changes in and Disagreements With Accountants on Accounting and Financial [removed: Disclosure.](#Item9)] [added: Disclosure.](#ia393e64e9f854158bf5e98b85077b319_172)] | [removed: 62] | [added: | [76](#ia393e64e9f854158bf5e98b85077b319_172) | | |]

| [Item [removed: 9A.](#Item9A)] [added: 9A.](#ia393e64e9f854158bf5e98b85077b319_175)] | [added: | |] [Controls and [removed: Procedures.](#Item9A)] [added: Procedures.](#ia393e64e9f854158bf5e98b85077b319_175)] | [removed: 62] | [added: | [76](#ia393e64e9f854158bf5e98b85077b319_175) | | |]

| [Item [removed: 9B.](#Item9B)] [added: 9B.](#ia393e64e9f854158bf5e98b85077b319_178)] | [added: | |] [Other [removed: Information.](#Item9B)] [added: Information.](#ia393e64e9f854158bf5e98b85077b319_178)] | [removed: 63] | [added: | [76](#ia393e64e9f854158bf5e98b85077b319_178) | | |]

| [Item [removed: 9C](#Item9C).] [added: 9C.](#ia393e64e9f854158bf5e98b85077b319_181)] | [added: | |] [Disclosure Regarding Foreign Jurisdictions that Prevent [removed: Inspections](#Item9C).] [added: Inspections.](#ia393e64e9f854158bf5e98b85077b319_181)] | [removed: 63] | [added: | [76](#ia393e64e9f854158bf5e98b85077b319_181) | | |]

| [removed: [PART III](#PartIII)] [added: [PART III](#ia393e64e9f854158bf5e98b85077b319_184)] | | [removed: 63] | [added: | | | [77](#ia393e64e9f854158bf5e98b85077b319_184) | | |]

| [Item [removed: 10.](#Item10)] [added: 10.](#ia393e64e9f854158bf5e98b85077b319_187)] | [added: | |] [Directors, Executive Officers and Corporate [removed: Governance.](#Item10)] [added: Governance.](#ia393e64e9f854158bf5e98b85077b319_187)] | [removed: 63] | [added: | [77](#ia393e64e9f854158bf5e98b85077b319_187) | | |]

| [Item [removed: 11.](#Item11)] [added: 11.](#ia393e64e9f854158bf5e98b85077b319_190)] | [added: | |] [Executive [removed: Compensation.](#Item11)] [added: Compensation.](#ia393e64e9f854158bf5e98b85077b319_190)] | [removed: 63] | [added: | [77](#ia393e64e9f854158bf5e98b85077b319_190) | | |]

| [Item [removed: 12.](#Item12)] [added: 12.](#ia393e64e9f854158bf5e98b85077b319_193)] | [added: | |] [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder [removed: Matters.](#Item12)] [added: Matters.](#ia393e64e9f854158bf5e98b85077b319_193)] | [removed: 63] | [added: | [77](#ia393e64e9f854158bf5e98b85077b319_193) | | |]

[Table of Contents](#ia393e64e9f854158bf5e98b85077b319_10)

___________________________________________________

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______________

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Yes x No ¨

Yes x No ¨

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Yes ¨ No x

[Table of Contents](#ia393e64e9f854158bf5e98b85077b319_10)

[Table of Contents](#ia393e64e9f854158bf5e98b85077b319_10)

| | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- |

| [PART I](#ia393e64e9f854158bf5e98b85077b319_13) | | | | | | [4](#ia393e64e9f854158bf5e98b85077b319_13) | | |

| [Item 1.](#ia393e64e9f854158bf5e98b85077b319_16) | | | [Business.](#ia393e64e9f854158bf5e98b85077b319_16) | | | [4](#ia393e64e9f854158bf5e98b85077b319_16) | | |

| [Item 1C.](#ia393e64e9f854158bf5e98b85077b319_25) | | | [Cybersecurity.](#ia393e64e9f854158bf5e98b85077b319_25) | | | [21](#ia393e64e9f854158bf5e98b85077b319_25) | | |

| [PART II](#ia393e64e9f854158bf5e98b85077b319_40) | | | | | | [25](#ia393e64e9f854158bf5e98b85077b319_40) | | |

| [PART IV](#ia393e64e9f854158bf5e98b85077b319_202) | | | | | | [77](#ia393e64e9f854158bf5e98b85077b319_202) | | |

| | | | [Signatures.](#ia393e64e9f854158bf5e98b85077b319_211) | | | [80](#ia393e64e9f854158bf5e98b85077b319_211) | | |

[Table of Contents](#ia393e64e9f854158bf5e98b85077b319_10)

____________________________________________________________________________

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______________________________________________________________

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| [PART I](#Part1) | | 4 |

| [Item 1](#Item1Business). | [Business](#Item1Business). | 4 |

| [Item 1C.](#Item1CCybersecurity) | [Cybersecurity](#Item1CCybersecurity). | 18 |

| [PART II](#PartII) | | 21 |

| [PART IV](#PartIV) | | 64 |

| | [Signatures](#Signatures). | 67 |

Executive management including our Chief Information Security Officer (“CISO”), who reports to our [removed: General Counsel &] Chief [added: Legal &] Risk Officer, update the Audit Committee on our cybersecurity posture no less frequently than quarterly and periodically update the full Board.

Our current CISO has been with the [removed: Company] [added: company] for more than [removed: nine] [added: ten] years—serving as our CISO for nearly [removed: eight] [added: nine] years—and has extensive cybersecurity experience through leadership and consulting roles.

[Table of Contents](#ia393e64e9f854158bf5e98b85077b319_10)

The location and total square footage of our Domestic segment stores at the end of fiscal [removed: 2025] [added: 2026] were as follows:

| | [added: | |] U.S. Stores(1) | | | | | [added: | | | |] U.S. Stores(1) | | |

| Alabama | | [added: |] 11 | | | [added: | | |] Nebraska | | [added: |] 4 | | [added: |]

| Alaska | | [added: |] 2 | | | [added: | | |] Nevada | | [added: |] 9 | | [added: |]

| Arizona | | [removed: 21] | [added: 19] | | [added: | | | |] New Hampshire | | [added: |] 6 | | [added: |]

| Arkansas | | [added: |] 7 | | | [added: | | |] New Jersey | | [added: |] 25 | | [added: |]

| California | | [removed: 130] | [added: 127] | | [added: | | | |] New Mexico | | [added: |] 5 | | [added: |]

| Colorado | | [removed: 21] | [added: 20] | | [added: | | | |] New York | | [removed: 44] | [added: 41] | [added: | |]

| Connecticut | | [added: |] 9 | | | [added: | | |] North Carolina | | [removed: 32] | [added: 30] | [added: | |]

| Delaware | | [added: |] 3 | | | [added: | | |] North Dakota | | [added: |] 4 | | [added: |]

| District of Columbia | | [added: |] 1 | | | [added: | | |] Ohio | | [removed: 33] | [added: 32] | [added: | |]

| Florida | | [removed: 62] | [added: 59] | | [added: | | | |] Oklahoma | | [added: |] 12 | | [added: |]

| Georgia | | [added: |] 28 | | | [added: | | |] Oregon | | [added: |] 11 | | [added: |]

| Hawaii | | [added: |] 2 | | | [added: | | |] Pennsylvania | | [removed: 33] | [added: 32] | [added: | |]

| Idaho | | [added: |] 5 | | | [added: | | |] Puerto Rico | | [added: |] 2 | | [added: |]

| Illinois | | [removed: 40] | [added: 36] | | [added: | | | |] Rhode Island | | [added: |] 1 | | [added: |]

| Indiana | | [added: |] 22 | | | [added: | | |] South Carolina | | [added: |] 13 | | [added: |]

| Iowa | | [added: |] 10 | | | [added: | | |] South Dakota | | [added: |] 2 | | [added: |]

| Kansas | | [removed: 8] | [added: 7] | | [added: | | | |] Tennessee | | [added: |] 13 | | [added: |]

| Kentucky | | [added: |] 9 | | | [added: | | |] Texas | | [removed: 100] | [added: 98] | [added: | |]

| Louisiana | | [added: |] 15 | | | [added: | | |] Utah | | [removed: 10] | [added: 9] | [added: | |]

| Maine | | [added: |] 3 | | | [added: | | |] Vermont | | [added: |] 1 | | [added: |]

| Maryland | | [removed: 19] | [added: 17] | | [added: | | | |] Virginia | | [removed: 29] | [added: 28] | [added: | |]

| Massachusetts | | [removed: 21] | [added: 20] | | [added: | | | |] Washington | | [added: |] 20 | | [added: |]

| Michigan | | [removed: 28] | [added: 27] | | [added: | | | |] West Virginia | | [removed: 5] | [added: 6] | [added: | |]

| Minnesota | | [removed: 18] | [added: 16] | | [added: | | | |] Wisconsin | | [removed: 22] | [added: 21] | [added: | |]

| Mississippi | | [added: |] 7 | | | [added: | | |] Wyoming | | [added: |] 1 | | [added: |]

| Missouri | | [added: |] 14 | | | [added: | | |] Total Domestic store count | | [removed: 957] | [added: 926] | [added: | |]

| Montana | | [added: |] 4 | | | [added: | | |] Square footage (in thousands) | | [removed: 36,539] | [added: 35,954] | [added: | |]

(1)Includes 20 Pacific Sales stores, [removed: 25 Best Buy] [added: 18] Outlet Centers and [removed: 21] [added: 2] Yardbird [removed: stand-alone] stores.

The location and total square footage of our International segment stores at the end of fiscal [removed: 2025] [added: 2026] were as follows:

| | [added: | |] Canada Stores(1) | | |

| Alberta | | [removed: 25] | [added: 23] | [added: | |]

| British Columbia | | [removed: 27] | [added: 25] | [added: | |]

| Manitoba | | [added: |] 4 | | [added: |]

| New Brunswick | | [added: |] 3 | | [added: |]

| Newfoundland | | [added: |] 1 | | [added: |]

| Nova Scotia | | [added: |] 3 | | [added: |]

| Ontario | | [removed: 69] | [added: 56] | [added: | |]

| Prince Edward Island | | [added: |] 1 | | [added: |]

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[Table of Contents](#ia393e64e9f854158bf5e98b85077b319_10)

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| Domestic | | | 871 | | | | | | 23 | | | | | | 32 | | |

| International | | | 135 | | | | | | 3 | | | | | | 4 | | |

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(1)

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| Domestic | | 901 | | | | 24 | | | | 32 | |

| International | | 153 | | | | 3 | | | | 4 | |

| Name | | [added: | | | |] Age | | [added: | | | |] Position with the Company | | [added: | | | |] Years with the Company | | |

| Corie S. Barry | | [removed: 49] | | [added: | | 50 | | | | | |] Chief Executive Officer | | | [removed: 25] | | [added: | 26 | | |]

| Matt Bilunas | | [removed: 52] | | [added: | | 53 | | | | | |] Senior Executive Vice President, Chief Financial Officer [removed: &] [added: and] Enterprise Strategy | | | [removed: 19] | | [added: | 20 | | |]

| Jason Bonfig | | [removed: 48] | | [added: | | 49 | | | | | |] Senior Executive Vice President, Customer Offering, [removed: Fulfilment &] [added: Fulfillment and] Best Buy Canada | | | [removed: 26] | | [added: | 27 | | |]

| Todd G. Hartman | | [removed: 58] | | [added: | | 59 | | | | | |] Executive Vice President, [removed: General Counsel,] Chief [added: Legal and] Risk Officer [removed: &] [added: and] Secretary | | | [removed: 19] | | [added: | 20 | | |]

| Kamy Scarlett | | [removed: 61] | | [added: | | 62 | | | | | |] Senior Executive Vice President, Corporate Affairs [removed: &] [added: and] Human Resources | | | [removed: 11] | | [added: | 12 | | |]

| Mathew R. Watson | | [removed: 54] | | [added: | | 55 | | | | | |] Senior Vice President, Controller and Chief Accounting Officer | | | [removed: 19] | | [added: | 20 | | |]

Prior to becoming CEO in June 2019, she was the company’s chief financial officer [removed: &] [added: and] chief strategic transformation officer, overseeing strategic transformation and growth, digital and technology, global finance, investor relations, enterprise risk and compliance, integration management and Best Buy Health.

Additionally, she has served on the board of directors for Domino’s Pizza Inc. since July 2018 and serves on the board of trustees for the College of St. [removed: Benedict.][added: Benedict and the University of St. John's.]

She [removed: is] also [removed: a member of the Business Roundtable,] serves on the executive committees for the Business Council and the Minnesota Business Partnership, and serves as the Chairwoman of the Retail Industry Leaders Association.

Matt Bilunas is our Senior Executive Vice President, Chief Financial Officer (“CFO”) [removed: &] [added: and] Enterprise Strategy.

In this role, he is responsible for overseeing all aspects of global finance, inclusive of audit, procurement and financial services, as well as enterprise [removed: strategy] [added: strategy, retail operations] and real estate.

In this role, he oversees all elements of merchandising, [removed: ecommerce,] [added: e-commerce,] supply chain and marketing, including Best Buy’s retail media network, Best Buy Ads.

Mr. Hartman sits on the advisory board of Markaaz, Inc. He serves [removed: as chair of the Best Buy Foundation and is] on the [removed: board] [added: boards] of the [added: Guthrie Theatre, the] Retail Litigation [removed: Center and] [added: Center,] Equal Justice [removed: Works.][added: Works and Project Success.]

He is [added: also] an adjunct faculty member at the University of Minnesota Law School.

Kamy Scarlett is our Senior Executive Vice President of Corporate Affairs [removed: &] [added: and] Human Resources.

Prior to joining [removed: us] [added: Best Buy] in 2005, Mr. Watson worked at KPMG from 1995 to 2005.

He serves on the [removed: boards] [added: board] of directors of [removed: Achieve Twin Cities and] the Best Buy Foundation.

[Table of Contents](#ia393e64e9f854158bf5e98b85077b319_10)

(As of March 18, 2026)

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Hartman is our Executive Vice President, Chief Legal and Risk Officer and Secretary.

[Table of Contents](#ia393e64e9f854158bf5e98b85077b319_10)

(As of March 19, 2025)

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| Damien Harmon | | 46 | | Senior Executive Vice President, Channel & Customer Experiences & Enterprise Services | | | 6 | |

Damien Harmon is our Senior Executive Vice President of Channel & Customer Experiences & Enterprise Services.

His areas of responsibility include Best Buy’s retail stores and operations, in-home services and sales, virtual experiences, customer care and customer strategy.

In his role, Mr. Harmon leads Geek Squad.

Mr. Harmon previously served as executive vice president of omnichannel from 2021 to 2023.

Prior to that, Mr. Harmon served as president, operations from 2020 to 2021 and senior vice president of workforce design from 2019 to 2020.

Mr. Harmon first joined Best Buy as a store general manager in 2005 and held various leadership positions in store operations.

Before rejoining Best Buy in 2019, Mr. Harmon spent four years at Bridgestone Americas Inc., where he served as president of GCR Tires from 2017 to 2018 and chief operating officer at Bridgestone Tires from 2016 to 2017.

Mr. Harmon serves on the board of Driven Brands and on the board of the Petco Love Foundation.

Hartman was appointed General Counsel in 2019 and has also served as Chief Risk Officer since 2017.

On March [removed: 4, 2025,] [added: 3, 2026,] we announced the Board’s approval of a 1% increase in the regularly quarterly cash dividend to [removed: $0.95] [added: $0.96] per share.

As of March [removed: 17, 2025,] [added: 16, 2026,] there were [removed: 1,866] [added: 1,769] holders of record of our common stock.

During fiscal [removed: 2025,] [added: 2026,] we repurchased and retired [removed: 5.8] [added: 4.0] million shares at a cost of [removed: $500] [added: $273] million.

Information regarding our repurchases of common stock during the fourth quarter of fiscal [removed: 2025] [added: 2026] was as follows:

| Period | [added: | |] Total [removed: Number‎of Shares‎Purchased] [added: Number of Shares Purchased] | | | [added: | | |] Average [removed: Price‎Paid] [added: Price Paid] per Share | | | | [added: | |] Total Number of [removed: Shares‎Purchased] [added: Shares Purchased] as Part of [removed: Publicly‎Announced] [added: Publicly Announced] Program | | | [added: | | |] Approximate Dollar [removed: Value‎of] [added: Value of] Shares that May Yet [removed: Be‎Purchased] [added: Be Purchased] Under the Program | | |

The graph below compares the cumulative total shareholder return on our common stock for the last five fiscal years with the cumulative total return on the Standard & Poor's (“S&P”) 500 Index (“S&P 500”), of which we are a component, and the S&P 500 Consumer Discretionary Distribution & Retail [removed: Index (formerly the S&P 500 Retailing Group Industry Index),] [added: Index,] of which we are also a component.

The graph assumes an investment of $100 at the close of trading on January [removed: 31, 2020,] [added: 30, 2021,] the last trading day of fiscal [removed: 2020,] [added: 2021,] in our common stock, the S&P 500 [removed: Index] and the S&P 500 Consumer Discretionary Distribution & Retail Index.

Among Best Buy Co., Inc., the S&P [removed: 500 Index][added: 500]

[removed: AI-generated content may be incorrect.](https://www.sec.gov/Archives/edgar/data/764478/000076447825000007/bby-20250201x10kg002.jpg)][added: ]

| Fiscal Years Ended | [removed: February 1, 2020] | | [removed: | |] January 30, 2021 | | | | [added: | |] January 29, 2022 | | | | [added: | |] January 28, 2023 | | | | [added: | |] February 3, 2024 | | | | [added: | |] February 1, 2025 | | | [added: | | | January 31, 2026 | | |]

| Nov. 2, 2025 through Nov. 29, 2025 | | | 462,754 | | | | | | $ | 76.96 | | | | | 462,754 | | | | | | $ | 3,047,000,000 | |

| Nov. 30, 2025 through Jan. 3, 2026 | | | 498,167 | | | | | | $ | 73.40 | | | | | 498,167 | | | | | | $ | 3,011,000,000 | |

| Jan. 4, 2026 through Jan. 31, 2026 | | | \- | | | | | | $ | \- | | | | | \- | | | | | | $ | 3,011,000,000 | |

| Total fiscal 2026 fourth quarter | | | 960,921 | | | | | | $ | 75.11 | | | | | 960,921 | | | | | | $ | 3,011,000,000 | |

[Table of Contents](#ia393e64e9f854158bf5e98b85077b319_10)

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| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| Best Buy Co., Inc. | | | $ | 100.00 | | | | | $ | 92.07 | | | | | $ | 83.94 | | | | | $ | 78.35 | | | | | $ | 92.71 | | | | | $ | 74.07 | |

| S&P 500 | | | $ | 100.00 | | | | | $ | 123.29 | | | | | $ | 113.16 | | | | | $ | 136.72 | | | | | $ | 172.78 | | | | | $ | 201.03 | |

| S&P 500 Consumer Discretionary Distribution & Retail | | | $ | 100.00 | | | | | $ | 108.64 | | | | | $ | 88.85 | | | | | $ | 114.73 | | | | | $ | 161.20 | | | | | $ | 164.12 | |

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| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| Nov. 3, 2024 through Nov. 30, 2024 | \- | | | $ | \- | | | \- | | | $ | 3,499,000,000 | |

| Dec. 1, 2024 through Jan. 4, 2025 | 1,059,305 | | | $ | 86.92 | | | 1,059,305 | | | $ | 3,407,000,000 | |

| Jan. 5, 2025 through Feb. 1, 2025 | 1,457,336 | | | $ | 84.35 | | | 1,457,336 | | | $ | 3,284,000,000 | |

| Total fiscal 2025 fourth quarter | 2,516,641 | | | $ | 85.43 | | | 2,516,641 | | | $ | 3,284,000,000 | |

![A graph of the number of companies

| Best Buy Co., Inc. | $ | 100.00 | | | $ | 132.06 | | | $ | 121.58 | | | $ | 110.85 | | | $ | 103.47 | | | $ | 122.43 | |

| S&P 500 | $ | 100.00 | | | $ | 117.25 | | | $ | 144.56 | | | $ | 132.68 | | | $ | 160.30 | | | $ | 202.59 | |

| S&P 500 Consumer Discretionary Distribution & Retail | $ | 100.00 | | | $ | 141.39 | | | $ | 153.61 | | | $ | 125.62 | | | $ | 162.21 | | | $ | 227.91 | |

Item 6.

\[Reserved\].

[Table of Contents](#ia393e64e9f854158bf5e98b85077b319_10)

Under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, we assessed the effectiveness of our internal control over financial reporting as of [removed: February 1, 2025,] [added: January 31, 2026,] using the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in *Internal Control — Integrated Framework (2013).* Based on our assessment, we have concluded that our internal control over financial reporting was effective as of [removed: February 1, 2025.][added: January 31, 2026.]

Deloitte & Touche LLP, the independent registered public accounting firm that audited our consolidated financial statements for the year ended [removed: February 1, 2025,] [added: January 31, 2026,] included in Item 8, *Financial Statements and Supplementary Data,* of this Annual Report on Form 10-K, has issued an unqualified attestation report on our internal control over financial reporting as of [removed: February 1, 2025.][added: January 31, 2026.]

To the shareholders and the Board of Directors of [added: Best Buy Co., Inc.]

[added: |] Best Buy Co., Inc. [added: Shareholders' Equity | | | | | | | | | | | |]

We have audited the accompanying consolidated balance sheets of Best Buy Co., Inc. and subsidiaries (the "Company") as of [added: January 31, 2026 and] February 1, 2025, [removed: and February 3, 2024,] the related consolidated statements of earnings, comprehensive income, cash [removed: flows] [added: flows,] and changes in [removed: shareholders’ equity] [added: shareholders' equity,] for each of the three years in the period ended [removed: February 1, 2025,] [added: January 31, 2026,] and the related notes (collectively referred to as the "financial statements").

In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of [added: January 31, 2026 and] February 1, 2025, and [removed: February 3, 2024, and] the results of its operations and its cash flows for each of the three fiscal years in the period ended [removed: February 1, 2025,] [added: January 31, 2026,] in conformity with accounting principles generally accepted in the United States of America.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of [removed: February 1, 2025,] [added: January 31, 2026,] based on criteria established in *Internal Control — Integrated Framework (2013)* issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated March [removed: 19, 2025,] [added: 18, 2026,] expressed an unqualified opinion on the Company's internal control over financial reporting.

Vendor Allowances – Domestic Reporting Segment [removed: — Refer] [added: — Refer] to Note 1 to the financial [removed: statements][added: statements.]

[removed: We] [added: - We] tested the effectiveness of controls over the recording of [removed: these] vendor allowances, including management's controls over the establishment of vendor arrangements, the calculation of vendor allowances earned, and the determination of the deferred vendor allowances recorded as a reduction to inventory.

[removed: We] [added: - We] selected a sample of [removed: these] vendor allowances recorded as a reduction of cost of sales and (1) recalculated the amount recognized using the terms of the vendor agreement; (2) evaluated, based on the terms of the agreement, if the amount should be deferred and recorded as a reduction of merchandise inventory; and (3) tested the settlement of the arrangement.

[removed: We] [added: - We] tested the amount of [removed: these] deferred vendor allowances recorded as a reduction to inventory by developing an expectation for the amount and comparing our expectation to the amount recorded by management.

Goodwill – Best Buy Health Reporting [removed: Unit —] [added: Unit —] Refer to Note 1 and Note 3 to the financial [removed: statements][added: statements.]

The [added: consolidated] goodwill balance was [removed: $908] [added: $790] million as of [removed: February 1, 2025,] [added: January 31, 2026,] of which [removed: $416] [added: $298] million was related to the Best Buy Health reporting unit.

The Company recorded a goodwill impairment of [removed: $475] [added: $118] million related to the Best Buy Health reporting unit in the year ended [removed: February 1, 2025.][added: January 31, 2026.]

[removed: We] [added: - We] tested the effectiveness of controls over management’s goodwill impairment evaluation, including those over the determination of the fair value of the Best Buy Health reporting unit, such as controls related to management’s forecasts of future revenue and margin rates, and estimates of the weighted average cost of capital rate.

[removed: We] [added: - We] evaluated management’s ability to accurately forecast future revenues and margin rates by comparing actual results to management’s historical forecasts.

[removed: We] [added: - We] evaluated the reasonableness of management’s revenue forecasts and margin rates by comparing the forecasts to: (1) the Company’s historical revenue growth rates; (2) internal communications to management and the board of directors; (3) underlying source documents, when available, such as customer contracts; (4) forecasted information included in industry reports, applicable market data, and certain peer companies; and (5) underlying analyses detailing business strategies and growth plans.

[removed: We] [added: - We] inquired of operating and sales management teams to determine whether the judgments and assumptions used in the future revenue projections were consistent with the strategy and long-range plans for the Best Buy Health reporting unit.

[removed: With] [added: - With] the assistance of our fair value specialists, we evaluated the reasonableness of the weighted average cost of capital rate by: (1) testing the mathematical accuracy of the calculations; and (2) developing a range based upon our independent estimate and comparing the rate selected by management to that range.

We have audited the internal control over financial reporting of Best Buy Co., Inc. and subsidiaries (the [removed: “Company”)] [added: "Company")] as of [removed: February 1, 2025,] [added: January 31, 2026,] based on criteria established in *Internal Control — Integrated Framework (2013)* issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of [removed: February 1, 2025,] [added: January 31, 2026,] based on criteria established in *Internal Control — Integrated Framework (2013)* issued by COSO.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated financial statements as of and for the year ended [removed: February 1, 2025,] [added: January 31, 2026,] of the Company and our report dated March [removed: 19, 2025,] [added: 18, 2026,] expressed an unqualified opinion on those financial statements.

| | [removed: February 1, 2025] | | [added: 2025] | | [removed: February 3, 2024] | | | [added: | 2024 | | |]

| Assets | | | | | | | | [added: | | | | | | |]

| Current assets | | | | | | | | [added: | | | |]

| Cash and cash equivalents | [added: | |] $ | [added: 1,738 | | | | | $ |] 1,578 | | | [added: | |] $ | 1,447 | |

| Receivables, net | | [removed: 1,044] | [added: 1,043] | | | [removed: 939] | | [added: | 1,044 | | |]

| Merchandise inventories | | [removed: 5,085] | [added: 5,230] | | | [removed: 4,958] | | [added: | 5,085 | | |]

| Other current assets | | [removed: 517] | [added: 493] | | | [removed: 553] | | [added: | 517 | | |]

| Total current assets | | [removed: 8,224] | [added: 8,504] | | | [removed: 7,897] | | [added: | 8,224 | | |]

| Property and equipment | | | | | | | | [added: | | | |]

| Land and buildings | | [removed: 722] | [added: 734] | | | [removed: 702] | | [added: | 722 | | |]

| Leasehold improvements | | [removed: 2,370] | [added: 2,395] | | | [removed: 2,275] | | [added: | 2,370 | | |]

| Fixtures and equipment | | [removed: 3,872] | [added: 3,732] | | | [removed: 4,002] | | [added: | 3,872 | | |]

| Property under finance leases | | [removed: 88] | [added: 80] | | | [removed: 97] | | [added: | 88 | | |]

| Gross property and equipment | | [removed: 7,052] | [added: 6,941] | | | [removed: 7,076] | | [added: | 7,052 | | |]

| Less accumulated depreciation | | [removed: 4,930] | [added: 4,955] | | | [removed: 4,816] | | [added: | 4,930 | | |]

| Net property and equipment | | [removed: 2,122] | [added: 1,986] | | | [removed: 2,260] | | [added: | 2,122 | | |]

| Operating lease assets | | [removed: 2,833] | [added: 2,869] | | | [removed: 2,758] | | [added: | 2,833 | | |]

| Goodwill | | [removed: 908] | [added: 790] | | | [removed: 1,383] | | [added: | 908 | | |]

[Table of Contents](#ia393e64e9f854158bf5e98b85077b319_10)

[Table of Contents](#ia393e64e9f854158bf5e98b85077b319_10)

March 18, 2026

[Table of Contents](#ia393e64e9f854158bf5e98b85077b319_10)

March 18, 2026

[Table of Contents](#ia393e64e9f854158bf5e98b85077b319_10)

| | | | January 31, 2026 | | | | | | February 1, 2025 | | |

[Table of Contents](#ia393e64e9f854158bf5e98b85077b319_10)

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| Goodwill and intangible asset impairments | | | | | | | | | | | | | | | 171 | | | | | | 475 | | | | | | \- | | |

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| Gain (loss) on disposal of subsidiaries, net | | | | | | | | | | | | | | | (6) | | | | | | \- | | | | | | 21 | | |

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| Fiscal Years Ended | | | January 31, 2026 | | | | | | February 1, 2025 | | | | | | February 3, 2024 | | |

[Table of Contents](#ia393e64e9f854158bf5e98b85077b319_10)

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| Fiscal Years Ended | | | January 31, 2026 | | | | | | February 1, 2025 | | | | | | February 3, 2024 | | |

| Net earnings | | | $ | 1,069 | | | | | $ | 927 | | | | | $ | 1,241 | |

| Restructuring charges | | | 190 | | | | | | (3) | | | | | | 153 | | |

| Goodwill and intangible asset impairments | | | 171 | | | | | | 475 | | | | | | \- | | |

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| (Gain) loss on disposal of subsidiaries, net | | | 6 | | | | | | \- | | | | | | (21) | | |

| Long-lived asset impairments | | | 21 | | | | | | 2 | | | | | | 2 | | |

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| Disposal of subsidiaries | | | (27) | | | | | | \- | | | | | | 14 | | |

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[Table of Contents](#ia393e64e9f854158bf5e98b85077b319_10)

March 19, 2025

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| Gain on sale of subsidiary, net | | \- | | | | (21) | | | | \- | |