Best Buy 10-Q 2025-11-01

Filed 2025-12-05. 7 sections, 146K characters. Original on sec.gov · Markdown · JSON

Cover and table of contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)
xQUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended November 1, 2025

OR

oTRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 1-9595

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BEST BUY CO., INC.

(Exact name of registrant as specified in its charter)

Minnesota41-0907483
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)
7601 Penn Avenue South Richfield, Minnesota55423
(Address of principal executive offices)(Zip Code)

(612) 291-1000

(Registrant’s telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each classTrading SymbolName of exchange on which registered
Common Stock, $0.10 par value per shareBBYNew York Stock Exchange

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated FilerxAccelerated FileroNon-accelerated Filero
Smaller Reporting CompanyoEmerging Growth Companyo

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No x

The registrant had 209,535,103 shares of common stock outstanding as of December 3, 2025.

BEST BUY CO., INC.

FORM 10-Q FOR THE QUARTER ENDED NOVEMBER 1, 2025

TABLE OF CONTENTS

Part I — Financial Information3
Item 1.Financial Statements3
a)Condensed Consolidated Balance Sheets as of November 1, 2025, February 1, 2025, and November 2, 20243
b)Condensed Consolidated Statements of Earnings for the three and nine months ended November 1, 2025, and November 2, 20244
c)Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended November 1, 2025, and November 2, 20245
d)Condensed Consolidated Statements of Cash Flows for the nine months ended November 1, 2025, and November 2, 20246
e)Condensed Consolidated Statements of Changes in Shareholders' Equity for the three and nine months ended November 1, 2025, and November 2, 20247
f)Notes to Condensed Consolidated Financial Statements8
Item 2.Management’s Discussion and Analysis of Financial Condition and Results of Operations18
Item 3.Quantitative and Qualitative Disclosures About Market Risk29
Item 4.Controls and Procedures29
Part II — Other Information30
Item 1.Legal Proceedings30
Item 2.Unregistered Sales of Equity Securities and Use of Proceeds30
Item 5.Other Information30
Item 6.Exhibits30
Signatures31

WEBSITE AND SOCIAL MEDIA DISCLOSURE

We disclose information to the public concerning Best Buy, Best Buy’s products, content and services and other items through our websites in order to achieve broad, non-exclusionary distribution of information to the public. Some of the information distributed through this channel may be considered material information. Investors and others are encouraged to review the information we make public in the locations below.* This list may be updated from time to time.

  • These corporate websites, and the contents thereof, are not incorporated by reference into this Quarterly Report on Form 10-Q nor deemed filed with the SEC.

PART I — FINANCIAL INFORMATION

Item 1. Financial Statements

Condensed Consolidated Balance Sheets

$ in millions, except per share amounts (unaudited)

November 1, 2025February 1, 2025November 2, 2024
Assets
Current assets
Cash and cash equivalents$923$1,578$643
Receivables, net1,0171,044932
Merchandise inventories7,9935,0857,806
Other current assets640517574
Total current assets10,5738,2249,955
Property and equipment, net2,0372,1222,196
Operating lease assets2,8382,8332,842
Goodwill7909081,383
Other assets548695642
Total assets$16,786$14,782$17,018
Liabilities and equity
Current liabilities
Accounts payable$7,319$4,980$7,145
Unredeemed gift card liabilities231253246
Deferred revenue853951878
Accrued compensation and related expenses392464361
Accrued liabilities689741690
Current portion of operating lease liabilities619617616
Current portion of long-term debt101012
Total current liabilities10,1138,0169,948
Long-term operating lease liabilities2,3092,2822,293
Long-term debt1,1551,1441,144
Long-term liabilities556532551
Contingencies (Note 10)
Equity
Best Buy Co., Inc. Shareholders' Equity
Preferred stock, $1.00 par value: Authorized - 400,000 shares; Issued and outstanding - none---
Common stock, $0.10 par value: Authorized - 1.0 billion shares; Issued and outstanding - 210.0 million, 211.4 million and 213.8 million shares, respectively222222
Additional paid-in capital16--
Retained earnings2,3062,4862,751
Accumulated other comprehensive income309300309
Total equity2,6532,8083,082
Total liabilities and equity$16,786$14,782$17,018

NOTE: The Consolidated Balance Sheet as of February 1, 2025, has been condensed from the audited consolidated financial statements.

See Notes to Condensed Consolidated Financial Statements.

Condensed Consolidated Statements of Earnings

$ and shares in millions, except per share amounts (unaudited)

Three Months EndedNine Months Ended
November 1, 2025November 2, 2024November 1, 2025November 2, 2024
Revenue$9,672$9,445$27,877$27,580
Cost of sales7,4247,22821,38621,113
Gross profit2,2482,2176,4916,467
Selling, general and administrative expenses1,8841,8715,4345,418
Restructuring charges(5)(4)2184
Goodwill and intangible asset impairments171-171-
Operating income1983506681,045
Other income (expense):
Loss on disposal of subsidiaries--(4)-
Investment income and other19195265
Interest expense(12)(13)(36)(38)
Earnings before income tax expense and equity in income (loss) of affiliates2053566801,072
Income tax expense6485151266
Equity in income (loss) of affiliates(1)2(1)4
Net earnings$140$273$528$810
Basic earnings per share$0.67$1.27$2.50$3.76
Diluted earnings per share$0.66$1.26$2.48$3.73
Weighted-average common shares outstanding:
Basic210.7214.8211.4215.7
Diluted212.1216.7212.7217.2

See Notes to Condensed Consolidated Financial Statements.

Condensed Consolidated Statements of Comprehensive Income

$ in millions (unaudited)

Three Months EndedNine Months Ended
November 1, 2025November 2, 2024November 1, 2025November 2, 2024
Net earnings$140$273$

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Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

Unless the context otherwise requires, the use of the terms “Best Buy,” “we,” “us” and “our” refers to Best Buy Co., Inc. and its consolidated subsidiaries. Any references to our website addresses do not constitute incorporation by reference of the information contained on the websites.

Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) is intended to provide a reader of our financial statements with a narrative from the perspective of our management on our financial condition, results of operations, liquidity and certain other factors that may affect our future results. Unless otherwise noted, transactions and other factors significantly impacting our financial condition, results of operations and liquidity are discussed in order of magnitude. Our MD&A should be read in conjunction with our Annual Report on Form 10-K for the fiscal year ended February 1, 2025 (including the information presented therein under Risk Factors), as well as our other reports on Forms 10-Q and 8-K and other publicly available information. All amounts herein are unaudited.

Overview

We are driven by our purpose to enrich lives through technology and our vision to personalize and humanize technology solutions for every stage of life. We accomplish this by leveraging our combination of tech expertise and a human touch to meet our customers’ everyday needs, whether they come to us online, visit our stores or invite us into their homes.

We have two reportable segments: Domestic and International. The Domestic segment is comprised of our operations in all states, districts and territories of the U.S. and our Best Buy Health business. The International segment is comprised of all our operations in Canada.

Our fiscal year ends on the Saturday nearest the end of January. Our business, like that of many retailers, is seasonal. A large proportion of our revenue and earnings is generated in the fiscal fourth quarter, which includes the majority of the holiday shopping season.

Comparable Sales

Throughout this MD&A, we refer to comparable sales. Comparable sales is a metric used by management to evaluate the performance of our existing stores and digital offerings by measuring the change in net sales for a particular period over the comparable prior period of equivalent length.

Comparable sales includes revenue from stores operating for at least 14 full months; sales initiated on a website, app or virtual store; advertising revenue; credit card revenue; commercial sales; gift card breakage; marketplace commission revenue; and sales of merchandise to wholesalers and dealers. Revenue from acquisitions is included in comparable sales beginning with the first full quarter following the first anniversary of the date of the acquisition. Comparable sales excludes revenue from stores closed more than 14 days (including but not limited to relocated, remodeled, expanded and downsized stores, or stores impacted by natural disasters) until at least 14 full months after reopening; the impact of certain periodic warranty-related profit-share revenue; the effect of fluctuations in foreign currency exchange rates (applicable to our International segment only); and the impact of the 53rd week (applicable in 53-week fiscal years only). Comparable sales is based on our fiscal calendar and is not adjusted to align calendar weeks. All periods presented apply this methodology consistently.

Comparable online sales is a subset of comparable sales related to our digital offerings and includes sales initiated on a website, app or virtual store; advertising revenue and marketplace commission revenue.

Consistent with our comparable sales policy, revenue from Best Buy Express locations rebranded as a result of our previously announced collaboration with Bell Canada is excluded from our comparable sales calculation until locations have been operating for at least 14 full months.

We believe comparable sales is a meaningful supplemental metric for investors to evaluate revenue performance resulting from growth in existing stores and digital offerings versus the portion resulting from opening new stores or closing existing stores. The method of calculating comparable sales varies across the retail industry. As a result, our method of calculating comparable sales may not be the same as other retailers’ methods.

Non-GAAP Financial Measures

This MD&A includes financial information prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”), as well as certain non-GAAP financial measures, such as consolidated adjusted operating income, consolidated adjusted operating income rate, consolidated adjusted effective tax rate and consolidated adjusted diluted earnings per share (“EPS”). We believe that non-GAAP financial measures, when reviewed in conjunction with GAAP financial measures, provide additional useful information for evaluating current period performance and assessing future performance. For these reasons, internal management reporting, including budgets, forecasts and financial targets used for short-term incentives are based on non-GAAP financial measures. Generally, our non-GAAP financial measures include adjustments for items such as restructuring charges, goodwill and acquired intangible asset impairments, certain long-lived asset impairments, price-fixing settlements, gains and losses on disposals of subsidiaries and certain investments, amortization of definite-lived intangible assets associated with acquisitions, certain acquisition-related costs and the tax effect of all such items. In addition, certain other items may be excluded from non-GAAP financial measures when we believe doing so provides greater clarity to management and our investors. We provide reconciliations of the most comparable financial measures presented in accordance with GAAP to presented non-GAAP financial measures that enable investors to understand the adjustments made in arriving at the non-GAAP financial measures and to evaluate performance using the same metrics as management. These non-GAAP financial measures should be considered in addition to, and not superior to or as a substitute for, GAAP financial measures. We strongly encourage investors and shareholders to review our financial statements and publicly filed reports in their entirety and not to rely on any single financial measure. Non-GAAP financial measures may be calculated differently from similarly titled measures used by other companies, thereby limiting their usefulness for comparative purposes.

In our discussions of the operating results of our consolidated business and our International segment, we sometimes refer to the impact of changes in foreign currency exchange rates or the impact of foreign currency exchange rate fluctuations, which are references to the differences between the foreign currency exchange rates we use to convert the International segment’s operating results from local currencies into U.S. dollars for reporting purposes. We also may use the term “constant currency,” which represents results adjusted to exclude foreign currency impacts. We calculate those impacts as the difference between the current period results translated using the current period currency exchange rates and using the comparable prior period currency exchange rates. We believe the disclosure of revenue changes in constant currency provides useful supplementary information to investors in light of significant fluctuations in currency rates.

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

Results of Operations

Consolidated Results

Selected consolidated financial data was as follows ($ in millions, except per share amounts):

Three Months EndedNine Months Ended
November 1, 2025November 2, 2024November 1, 2025November 2, 2024
Revenue$9,672$9,445$27,877$27,580
Revenue % change2.4%(3.2)%1.1%(4.3)%
Comparable sales % change2.7%(2.9)%1.2%(3.7)%
Gross profit$2,248$2,217$6,491$6,467
Gross profit as a % of revenue(1)23.2%23.5%23.3%23.4%
Selling, general and administrative expense ("SG&A")$1,884$1,871$5,434$5,418
SG&A as a % of revenue(1)19.5%19.8%19.5%19.6%
Restructuring charges$(5)$(4)$218$4
Goodwill and intangible asset impairments$171$-$171$-
Operating income$198$350$668$1,045
Operating income as a % of revenue2.0%3.7%2.4%3.8%
Net earnings$140$273$528$810
Diluted EPS$0.66$1.26$2.48$3.73

(1)Because retailers vary in how they record costs of operating their supply chain between cost of sales and SG&A, our gross profit rate and SG&A rate may not be comparable to other retailers’ corresponding rates. For additional information regarding costs classified in cost of sales and SG&A, refer to Note 1, Summary of Significant Accounting Policies, of the Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended February 1, 2025.

In the third quarter and first nine months of fiscal 2026, we generated $9.7 billion and $27.9 billion in revenue, respectively, and our comparable sales grew 2.7% and 1.2%, respectively, driven by a mix of new technology innovation, our continued focus on omni-channel customer experience and strong vendor partnerships. Comparable sales changes in the third quarter and first nine months of fiscal 2026 primarily included comparable sales growth in computing, gaming and mobile phones, partially offset by comparable sales declines in home theater, appliances and drones.

Restructuring charges in the first nine months of fiscal 2026 were primarily associated with a labor and store optimization restructuring initiative that commenced in the second quarter of fiscal 2026 and a restructuring initiative focused on optimizing our Best Buy Health business that commenced in the first quarter of fiscal 2026. Refer to Note 2, Restructuring, of the Notes to Consolidated Financial Statements, for additional information.

Goodwill and intangible asset impairments in the third quarter and first nine months of fiscal 2026 were related to Best Buy Health. A change in Best Buy Health’s customer base during the third quarter of fiscal 2026 resulted in an impairment review of all Best Buy Health assets. The impairments reflect downward revisions of our revenue growth rates and margin rates compared to previous projections, in part due to pressures in the Medicaid and Medicare Advantage markets. Refer to Note 3, Goodwill and Intangible Assets, of the Notes to Consolidated Financial Statements, for additional information

Operating income rate decreased in the third quarter of fiscal 2026, primarily due to goodwill and intangible asset impairments.

Operating income rate decreased in the first nine months of fiscal 2026, primarily due to higher restructuring charges and goodwill and intangible asset impairments.

Diluted EPS decreased in the third quarter of fiscal 2026, primarily due to lower net earnings driven by higher goodwill and intangible asset impairments, partially offset by lower income tax expense.

Diluted EPS decreased in the first nine months of fiscal 2026, primarily due to lower net earnings driven by higher restructuring charges and goodwill and intangible asset impairments, partially offset by lower income tax expense.

Revenue, gross profit rate, SG&A rate and operating income rate changes in the third quarter of fiscal 2026 were primarily driven by our Domestic segment.

Revenue, gross profit rate and operating income rate changes in the first nine months of fiscal 2026 were primarily driven by our Domestic segment, and SG&A rate changes in the first nine months of fiscal 2026 were driven by our International segment.

For further discussion of our Domestic and International segments, see Segment Performance Summary, below.

Store Summary

Stores open by reportable segment were as follows:

November 1, 2025November 2, 2024
Best Buy886889
Outlet Centers1825
Pacific Sales2020
Yardbird223
Total Domestic stores926957
Canada Best Buy stores129129
Canada Best Buy Mobile stand-alone stores2831
Total International stores(1)157160
Total stores1,0831,117

(1)Excludes Best Buy Express stores leased by Bell Canada.

We continuously monitor store performance as part of a market-driven, omnichannel strategy. As we approach the expiration of leases, we evaluate various options for each location, including whether a store should remain open. In fiscal 2026, we currently expect to reduce our traditional Domestic Best Buy store count by 5 stores in the normal course of operations. In fiscal 2026, we closed select non-traditional Domestic store locations in conjunction with our restructuring initiative that commenced in the second quarter of fiscal 2026, with additional closures expected in fiscal 2027. See Note 2, Restructuring, of the Notes to Condensed Consolidated Financial Statements, included in this Quarterly Report on Form 10-Q for additional information.

Income Tax Expense

Income tax expense decreased to $64 million in the third quarter of fiscal 2026 compared to $85 million in the third quarter of fiscal 2025, primarily due to lower pre-tax income, partially offset by the impact of certain expenses that are not tax deductible. Effective tax rate (“ETR”) increased to 31.5% in the third quarter of fiscal 2026 compared to 23.9% in the third quarter of fiscal 2025, primarily due to the impact of certain expenses that are not tax deductible and lower pre-tax income, partially offset by increased tax benefits from resolutions of tax matters.

Income tax expense decreased to $151 million in the first nine months of fiscal 2026 compared to $266 million in the first nine months of fiscal 2025, primarily due to lower pre-tax income and the discrete tax impacts of the restructuring charges and associated exit of a component of our Best Buy Health business, partially offset by the impact of certain expenses that are not tax deductible. ETR decreased to 22.3% in the first nine months of fiscal 2026 compared to 24.8% in the first nine months of fiscal 2025, primarily due to the discrete tax impacts of the restructuring charges and associated exit of a component of our Best Buy Health business, partially offset by the impact of certain expenses that are not tax deductible and lower pre-tax income. See Note 2, Restructuring, of the Notes to Condensed Consolidated Financial Statements, included in this Quarterly Report on Form 10-Q for additional information.

Our tax provision for interim periods is determined using an estimate of our annual ETR, adjusted for discrete and unusual and infrequent items, if any, that are taken into account in the relevant period. We update our estimate of the annual ETR each quarter, and we make a cumulative adjustment if our estimated tax rate changes. Our quarterly tax provision and our quarterly estimate of our annual ETR are subject to variation due to several factors, including our ability to accurately forecast our pre-tax and taxable income and loss by jurisdiction, tax audit developments, recognition of excess tax benefits or deficiencies related to stock-based compensation, foreign currency gains (losses), changes in laws or regulations, and expenses or losses for which tax benefits are not recognized. Our ETR can be more or less volatile based on the amount of pre-tax earnings. For example, the impact of discrete items and non-deductible losses on our ETR is greater when our pre-tax earnings are lower.

Segment Performance Summary

Domestic Segment

Selected financial data for the Domestic segment was as follows ($ in millions):

Three Months EndedNine Months Ended
November 1, 2025November 2, 2024November 1, 2025November 2, 2024
Revenue$8,878$8,697$25,703$25,523
Revenue % change2.1%(3.3)%0.7%(4.4)%
Comparable sales % change(1)2.4%(2.8)%1.0%(3.8)%
Gross profit$2,067$2,049$6,008$5,993
Gross profit as a % of revenue23.3%23.6%23.4%23.5%
Adjusted SG&A(2)$1,707$1,711$4,968$4,966
Adjusted SG&A as a % of revenue(3)19.2%19.7%19.3%19.5%
Adjusted operating income(2)$360$338$1,040$1,027
Adjusted operating income as a % of revenue(4)4.1%3.9%4.0%4.0%
Selected Online Revenue Data
Total online revenue$2,823$2,727$8,258$7,970
Online revenue as a % of total segment revenue31.8%31.4%32.1%31.2%
Comparable online sales % change(1)3.5%(1.0)%3.6%(2.9)%

(1)Comparable online sales are included in the comparable sales calculation.

(2)Represents Domestic segment Adjusted SG&A and Domestic segment Adjusted operating income as reported in accordance with the adoption of Accounting Standards Update (“ASU”) 2023-07, Segment Reporting (Topic 280), in the fourth quarter of fiscal 2025. See our Annual Report on Form 10-K for the fiscal year ended February 1, 2025, for additional information.

(3)Adjusted SG&A as a % of revenue is calculated as Domestic segment Adjusted SG&A divided by Domestic segment Revenue.

(4)Adjusted operating income as a % of revenue is calculated as Domestic segment Adjusted operating income divided by Domestic segment Revenue.

Domestic segment revenue increased in the third quarter and first nine months of fiscal 2026, primarily driven by comparable sales growth in computing, gaming and mobile phones, partially offset by comparable sales declines in home theater and appliances. Online revenue of $2.8 billion and $8.3 billion in the third quarter and first nine months of fiscal 2026 increased 3.5% and 3.6%, respectively, on a comparable basis.

Domestic segment revenue mix percentages and comparable sales percentage changes by revenue category were as follows:

Revenue MixComparable Sales
Three Months EndedThree Months Ended
November 1, 2025November 2, 2024November 1, 2025November 2, 2024
Computing and Mobile Phones49%47%7.6%3.8%
Consumer Electronics26%28%(2.9)%(5.8)%
Appliances11%12%(8.4)%(14.7)%
Entertainment6%5%14.0%(18.8)%
Services7%7%(1.0)%6.0%
Other1%1%(6.5)%12.9%
Total100%100%2.4%(2.8)%

Notable comparable sales changes by revenue category were as follows:

  • Computing and Mobile Phones:** The 7.6% comparable sales growth was driven primarily by computing and mobile phones.

  • Consumer Electronics:** The 2.9% comparable sales decline was driven primarily by home theater.

  • Appliances:** The 8.4% comparable sales decline was driven primarily by large appliances.

  • Entertainment:** The 14.0% comparable sales growth was driven primarily by gaming, partially offset by a comparable sales decline in drones.

  • Services:** The 1.0% comparable sales decline was driven primarily by Best Buy Health service offerings.

Domestic segment gross profit rate decreased in the third quarter of fiscal 2026, primarily due to lower product margin rates, which were partially offset by rate improvement within the services category. The lower product margin rates were primarily driven by an unfavorable sales mix and increased personalized promotional offers.

Domestic segment gross profit rate decreased in the first nine months of fiscal 2026, primarily due to lower product margin rates and rate pressure within our Best Buy Health business, which were partially offset by rate improvement within the services category.

Domestic segment adjusted SG&A decreased in the third quarter of fiscal 2026, primarily due to lower Best Buy Health expenses, largely offset by higher incentive compensation expense.

Domestic segment adjusted SG&A increased in the first nine months of fiscal 2026, primarily due to higher compensation expense, which includes incentive compensation, partially offset by lower Best Buy Health expenses and favorable fiscal 2026 indirect tax resolutions.

Domestic segment adjusted operating income rate increased in the third quarter of fiscal 2026, primarily due to a favorable adjusted SG&A rate driven by sales leverage, partially offset by an unfavorable gross profit rate.

Domestic segment adjusted operating income rate remained effectively unchanged in the first nine months of fiscal 2026 compared to the first nine months of fiscal 2025, primarily due to a favorable adjusted SG&A rate, offset by an unfavorable gross profit rate.

International Segment

Selected financial data for the International segment was as follows ($ in millions):

Three Months EndedNine Months Ended
November 1, 2025November 2, 2024November 1, 2025November 2, 2024
Revenue$794$748$2,174$2,057
Revenue % change6.1%(1.6)%5.7%(2.9)%
Comparable sales % change6.3%(3.7)%4.5%(3.0)%
Gross profit$181$168$483$474
Gross profit as a % of revenue22.8%22.5%22.2%23.0%
Adjusted SG&A(1)$153$155$433$436
Adjusted SG&A as a % of revenue(2)19.3%20.7%19.9%21.2%
Adjusted operating income(1)$28$13$50$38
Adjusted operating income as a % of revenue(3)3.5%1.7%2.3%1.8%

(1)Represents International segment Adjusted SG&A and International segment Adjusted operating income as reported in accordance with the adoption of ASU 2023-07. See our Annual Report on Form 10-K for the fiscal year ended February 1, 2025, for additional information.

(2)Adjusted SG&A as a % of revenue is calculated as International segment Adjusted SG&A divided by International segment Revenue.

(3)Adjusted operating income as a % of revenue is calculated as International segment Adjusted operating income divided by International segment Revenue.

International segment revenue increased in the third quarter of fiscal 2026, primarily driven by comparable sales growth in computing and mobile phones, and revenue from Best Buy Express locations excluded from comparable sales that opened in Canada after the second quarter of fiscal 2025. These increases were partially offset by the negative impact of foreign exchange rates.

International segment revenue increased in the first nine months of fiscal 2026, primarily driven by comparable sales growth in computing, gaming and mobile phones, and revenue from Best Buy Express locations excluded from comparable sales that opened in Canada after the second quarter of fiscal 2025. These increases were partially offset by the negative impact of foreign exchange rates.

International segment revenue mix percentages and comparable sales percentage changes by revenue category were as follows:

Revenue MixComparable Sales
Three Months EndedThree Months Ended
November 1, 2025November 2, 2024November 1, 2025November 2, 2024
Computing and Mobile Phones53%52%9.2%(0.1)%
Consumer Electronics25%26%3.6%(6.1)%
Appliances8%9%(4.1)%(8.1)%
Entertainment7%6%11.3%(18.7)%
Services6%6%3.9%4.0%
Other1%1%3.3%(12.7)%
Total100%100%6.3%(3.7)%

Notable comparable sales changes by revenue category were as follows:

  • Computing and Mobile Phones:** The 9.2% comparable sales growth was driven primarily by computing and mobile phones.

  • Consumer Electronics:** The 3.6% comparable sales growth was driven primarily by digital imaging.

  • Appliances:** The 4.1% comparable sales decline was driven primarily by large appliances.

  • Entertainment:** The 11.3% comparable sales growth was driven primarily by gaming.

  • Services:** The 3.9% comparable sales growth was driven primarily by growth in our membership programs.

International segment gross profit rate increased in the third quarter of fiscal 2026, primarily due to favorable supply chain costs.

International segment gross profit rate decreased in the first nine months of fiscal 2026, primarily due to lower product margin rates.

International segment adjusted SG&A decreased in the third quarter of fiscal 2026, primarily due to the favorable impact of foreign exchange rates, partially offset by higher employee compensation expense.

International segment adjusted SG&A decreased in the first nine months of fiscal 2026, primarily due to the favorable impact of foreign exchange rates, partially offset by higher credit card processing fees, expenses associated with Best Buy Express locations that opened after the second quarter of fiscal 2025 and higher employee compensation expense.

International segment adjusted operating income rate increased in the third quarter of fiscal 2026, primarily due to increased leverage from higher sales volumes, which resulted in a favorable adjusted SG&A rate.

International segment adjusted operating income rate increased in the first nine months of fiscal 2026, primarily due to increased leverage from higher sales volumes, which resulted in a favorable adjusted SG&A rate, partially offset by an unfavorable gross profit rate.

Consolidated Non-GAAP Financial Measures

Reconciliations of consolidated operating income, effective tax rate and diluted EPS (GAAP financial measures) to consolidated adjusted operating income, adjusted effective tax rate and adjusted diluted EPS (non-GAAP financial measures), respectively, were as follows ($ in millions, except per share amounts):

Three Months EndedNine Months Ended
November 1, 2025November 2, 2024November 1, 2025November 2, 2024
Operating income$198$350$668$1,045
% of revenue2.0%3.7%2.4%3.8%
Intangible asset amortization(1)351216
Long-lived asset impairment(2)21-21-
Restructuring charges(3)(5)(4)2184
Goodwill and intangible asset impairments(2)171-171-
Adjusted operating income$388$351$1,090$1,065
% of revenue4.0%3.7%3.9%3.9%
Effective tax rate31.5%23.9%22.3%24.8%
Intangible asset amortization(1)(0.3)%(0.1)%0.1%—%
Long-lived asset impairment(2)(1.4)%—%0.2%—%
Restructuring charges(3)(1.5)%—%3.2%—%
Goodwill and intangible asset impairments(2)(3.7)%—%0.5%—%
Loss on disposal of subsidiaries(4)—%—%0.1%—%
Adjusted effective tax rate24.6%23.8%26.4%24.8%
Diluted EPS$0.66$1.26$2.48$3.73
Intangible asset amortization(1)0.020.020.060.07
Long-lived asset impairment(2)0.10-0.10-
Restructuring charges(3)(0.03)(0.02)1.020.02
Goodwill and intangible asset impairments(2)0.81-0.80-
Loss on disposal of subsidiaries(4)--0.02-
Income tax impact of non-GAAP adjustments(5)(0.16)-(0.66)(0.02)
Adjusted diluted EPS$1.40$1.26$3.82$3.80

For additional information regarding the nature of charges discussed below, refer to Note 2, Restructuring; Note 3, Goodwill and Intangible Assets; and Note 4, Fair Value Measurements, of the Notes to Condensed Consolidated Financial Statements, included in this Quarterly Report on Form 10-Q.

(1)Represents the non-cash amortization of definite-lived intangible assets associated with acquisitions, including customer relationships, tradenames and developed technology assets.

(2)Represents charges incurred related to Best Buy Health, comprised of non-cash impairments of goodwill, intangible assets and certain long-lived assets.

(3)Represents charges and subsequent adjustments for the three and nine months ended November 1, 2025, primarily related to a labor and store optimization initiative that commenced in the second quarter of fiscal 2026, and a restructuring initiative within our Best Buy Health business that commenced in the first quarter of fiscal 2026. Charges and subsequent adjustments for the three and nine months ended November 2, 2024, primarily related to an enterprise-wide restructuring initiative that commenced in the fourth quarter of fiscal 2024.

(4)Primarily represents the loss on disposal of a component of our Best Buy Health business.

(5)The non-GAAP adjustments primarily relate to the U.S. As such, the forecasted annual income tax on a portion of the U.S. non-GAAP adjustments is calculated using the statutory tax rate of 24.5%, adjusted for tax benefits discrete to the period. There is no forecasted annual income tax for a portion of the U.S. non-GAAP adjustments, as there is no forecasted annual tax benefit on the expenses in the calculation of GAAP income tax expense.

Adjusted operating income rate increased in the third quarter of fiscal 2026, primarily due to a favorable SG&A rate, partially offset by an unfavorable gross profit rate.

Adjusted operating income rate in the first nine months of fiscal 2026 remained effectively unchanged from the first nine months of fiscal 2025.

Adjusted effective tax rate increased in the third quarter of fiscal 2026, primarily due to decreased tax benefits from green energy incentives and increased U.S. taxes from sourcing operations, partially offset by increased tax benefits from resolutions of tax matters. Adjusted effective tax rate increased in the first nine months of fiscal 2026, primarily due to decreased tax benefits from green energy incentives and resolutions of tax matters, as well as increased U.S. taxes from sourcing operations.

Adjusted diluted EPS increased in the third quarter of fiscal 2026, primarily due to higher adjusted operating income.

Adjusted diluted EPS increased in the first nine months of fiscal 2026, primarily due to higher adjusted operating income and lower diluted weighted-average common shares outstanding, partially offset by the impact of the higher adjusted effective tax rate and lower investment income.

Liquidity and Capital Resources

We closely manage our liquidity and capital resources. Our liquidity requirements depend on key variables, including the level of investment required to support our business strategies, the performance of our business, capital expenditures, dividends, credit facilities, short-term borrowing arrangements and working capital management. We modify our approach to managing these variables as changes in our operating environment arise. For example, capital expenditures and share repurchases are a component of our cash flow and capital management strategy, which, to a large extent, we can adjust in response to economic and other changes in our business environment.

Cash and cash equivalents were as follows ($ in millions):

November 1, 2025February 1, 2025November 2, 2024
Cash and cash equivalents$923$1,578$643

The decrease in cash and cash equivalents from February 1, 2025, was primarily due to dividend payments, the timing and volume of inventory purchases and payments, capital expenditures and share repurchases, partially offset by cash flows related to earnings.

The increase in cash and cash equivalents from November 2, 2024, was primarily due to positive cash flows from operations, primarily driven by earnings, partially offset by dividend payments, capital expenditures and share repurchases.

Cash Flows

Cash flows were as follows ($ in millions):

Nine Months Ended
November 1, 2025November 2, 2024
Total cash provided by (used in):
Operating activities$684$561
Investing activities(555)(522)
Financing activities(808)(892)
Effect of exchange rate changes on cash and cash equivalents5(2)
Decrease in cash, cash equivalents and restricted cash$(674)$(855)

Operating Activities

The increase in cash provided by operating activities in the first nine months of fiscal 2026 was primarily driven by an increase in net earnings adjusted for non-cash items, partially offset by the timing and volume of inventory purchases and payments.

Investing Activities

The increase in cash used in investing activities in the first nine months of fiscal 2026 was primarily due to the disposal of a component of our Best Buy Health business.

Financing Activities

The decrease in cash used in financing activities in the first nine months of fiscal 2026 was primarily driven by lower share repurchases.

Sources of Liquidity

Funds generated by operating activities, available cash and cash equivalents, our credit facilities, other debt arrangements and trade payables are our most significant sources of liquidity. We believe our sources of liquidity will be sufficient to fund operations and anticipated capital expenditures, share repurchases, dividends and strategic initiatives, including business combinations. However, in the event our liquidity is insufficient, we may be required to limit our spending. There can be no assurance that we will continue to generate cash flows at or above current levels or that we will be able to maintain our ability to borrow under our existing credit facilities or obtain additional financing, if necessary, on favorable terms.

On April 18, 2025, we entered into a $1.25 billion five-year senior unsecured revolving credit facility agreement (the “Five-Year Facility Agreement”) with a syndicate of banks. The Five-Year Facility Agreement replaced the previous $1.25 billion senior unsecured revolving credit facility (the “Previous Facility”) with a syndicate of banks, which was entered into April 2023 and scheduled to expire in April 2028, but was terminated on April 18, 2025. The Five-Year Facility Agreement permits borrowings of up to $1.25 billion and expires in April 2030. There were no borrowings outstanding under the Five-Year Facility Agreement as of November 1, 2025, or the Previous Facility as of February 1, 2025, or November 2, 2024.

Restricted Cash

Our liquidity is also affected by restricted cash balances that are primarily restricted to cover product protection plans provided under our membership offerings and self-insurance liabilities. Restricted cash, which is included in Other current assets on our Condensed Consolidated Balance Sheets, was $271 million, $290 million and $295 million as of November 1, 2025, February 1, 2025, and November 2, 2024, respectively. The decreases in restricted cash from February 1, 2025, and November 2, 2024 were primarily due to releases of product protection reserves based on claims and purchasing behaviors of customers participating in our membership offerings.

Debt and Capital

As of November 1, 2025, we had $500 million of principal amount of notes due October 1, 2028, and $650 million of principal amount of notes due October 1, 2030. Refer to Note 6, Debt, of the Notes to Condensed Consolidated Financial Statements, included in this Quarterly Report on Form 10-Q, and Note 8, Debt, of the Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended February 1, 2025, for additional information about our outstanding debt.

Share Repurchases and Dividends

We repurchase our common stock and pay dividends pursuant to programs approved by our Board of Directors (“Board”). The payment of cash dividends is also subject to customary legal and contractual restrictions. Our long-term capital allocation strategy is to first fund operations and investments in growth and then return excess cash over time to shareholders through dividends and share repurchases while maintaining investment-grade credit metrics. Our share repurchase plans are evaluated on an ongoing basis, considering factors such as our financial condition and cash flows, our economic outlook, the impact of tax laws, our liquidity needs, our stock price and the health and stability of global markets. The timing and amount of future repurchases may vary depending on such factors.

On February 28, 2022, our Board approved a $5.0 billion share repurchase program. There is no expiration date governing the period over which we can repurchase shares under this authorization.

Share repurchase and dividend activity were as follows ($ and shares in millions, except per share amounts):

Three Months EndedNine Months Ended
November 1, 2025November 2, 2024November 1, 2025November 2, 2024
Total cost of shares repurchased$34$135$201$285
Average price per share$74.03$95.43$67.28$87.19
Total number of shares repurchased0.51.43.03.2
Regular quarterly cash dividend per share$0.95$0.94$2.85$2.82
Cash dividends declared and paid$199$202$602$607

The total cost of shares repurchased decreased in the third quarter of fiscal 2026, due to decreases in the volume of repurchases and the average price per share. The total cost of shares repurchased decreased in the first nine months of fiscal 2026, due to decreases in the average price per share and the volume of repurchases .

Cash dividends declared and paid decreased in the third quarter and first nine months of fiscal 2026, due to fewer shares outstanding, partially offset by increases in the regular quarterly cash dividend per share.

Off-Balance-Sheet Arrangements and Contractual Obligations

Our liquidity is not dependent on the use of off-balance-sheet financing arrangements other than in connection with our $1.25 billion in undrawn capacity on our Five-Year Facility Agreement as of November 1, 2025, which, if drawn upon, would be included in either short-term or long-term debt on our Condensed Consolidated Balance Sheets.

There has been no material change in our contractual obligations other than in the ordinary course of business since the end of fiscal 2025. See our Annual Report on Form 10-K for the fiscal year ended February 1, 2025, for additional information regarding our off-balance-sheet arrangements and contractual obligations.

Significant Accounting Policies and Estimates

We describe our significant accounting policies in Note 1, Summary of Significant Accounting Policies, of the Notes to Consolidated Financial Statements, and our critical accounting estimates in Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations, in our Annual Report on Form 10-K for the fiscal year ended February 1, 2025.

Other than the goodwill impairment recorded in the third quarter of fiscal 2026 for the Best Buy Health reporting unit, there have been no significant changes in our significant accounting policies or critical accounting estimates since the end of fiscal 2025. See Note 3, Goodwill and Intangible Assets, of the Notes to Condensed Consolidated Financial Statements, included in this Quarterly Report on Form 10-Q.

New or Recently Issued Accounting Pronouncements

For a description of applicable new or recently issued accounting pronouncements, including our assessment of the impact on our financial statements, see Note 1, Basis of Presentation, of the Notes to Condensed Consolidated Financial Statements, included in this Quarterly Report on Form 10-Q.

Safe Harbor Statement Under the Private Securities Litigation Reform Act

Section 27A of the Securities Act of 1933, as amended (“Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (“Exchange Act”), provide a “safe harbor” for forward-looking statements to encourage companies to provide prospective information about their companies. With the exception of historical information, the matters discussed in this Quarterly Report on Form 10-Q are forward-looking statements and may be identified by the use of words such as “anticipate,” “appear,” “approximate,” “assume,” “believe,” “continue,” “could,” “estimate,” “expect,” “foresee,” “guidance,” “intend,” “may,” “might,” “outlook,” “plan,” “possible,” “project,” “seek,” “should,” “would,” and other words and terms of similar meaning or the negatives thereof. Such statements reflect our current views and estimates with respect to future market conditions, company performance and financial results, operational investments, business prospects, our operating model, new strategies and growth initiatives, the competitive environment, consumer behavior and other events. These statements involve a number of judgments and are subject to certain risks and uncertainties, many of which are outside the control of the Company, that could cause actual results to differ materially from the potential results discussed in such forward-looking statements. Readers should review Item 1A, Risk Factors, of our most recent Annual Report on Form 10-K, and any updated information in subsequent Quarterly Reports on Form 10-Q, for a description of important factors that could cause our actual results to differ materially from those contemplated by the forward-looking statements made in this Quarterly Report on Form 10-Q. Among the factors that could cause actual results and outcomes to differ materially from those contained in such forward-looking statements are the following: macroeconomic pressures in the markets in which we operate (including but not limited to recession, inflation rates, fluctuations in foreign currency exchange rates, limitations on a government’s ability to borrow and/or spend capital, fluctuations in housing prices, energy markets, jobless rates, the imposition of tariffs, trade wars and effects related to the conflicts in Eastern Europe and the Middle East, supply chain disruptions or other geopolitical events); catastrophic events, health crises and pandemics; susceptibility of the products we sell to technological advancements, product life cycle fluctuations and changes in consumer preferences; competition (including from multi-channel retailers, e-commerce business, technology service providers, traditional store-based retailers, vendors and mobile network carriers and in the provision of delivery speed and options); our ability to attract and retain qualified employees; changes in market compensation rates; our expansion into health and new products, services and technologies; our focus on services as a strategic priority; our reliance on key vendors and mobile network carriers (including product availability); our ability to maintain positive brand perception and recognition; our ability to effectively manage strategic ventures, alliances or acquisitions; our ability to effectively manage our real estate portfolio; inability of vendors or service providers to perform components of our supply chain (impacting our stores or other aspects of our operations) and other various functions of our business; risks arising from and potentially unique to our exclusive brands products; risks associated with vendors that source products outside of the U.S.; our reliance on our information technology systems, internet and telecommunications access and capabilities; our ability to prevent or effectively respond to a cyber-attack, privacy or security breach; product safety and quality concerns; changes to labor or employment laws or regulations; risks arising from statutory, regulatory and legal developments (including statutes and/or regulations related to tax or privacy); evolving corporate governance and public disclosure regulations and expectations (including, but not limited to, cybersecurity and environmental, social and governance matters); risks arising from our international activities (including those related to the conflicts in Eastern Europe and the Middle East, fluctuations in foreign currency exchange rates, the imposition of tariffs and trade wars) and those of our vendors; failure to effectively manage our costs; our dependence on cash flows and net earnings generated during the fourth fiscal quarter; pricing investments and promotional activity; economic or regulatory developments that might affect our ability to provide attractive promotional financing; constraints in the capital markets; changes to our vendor credit terms; changes in our credit ratings; and failure to meet financial-performance guidance or other forward-looking statements. We caution that the foregoing list of important factors is not

complete. Any forward-looking statements speak only as of the date they are made and we assume no obligation to update any forward-looking statement that we may make.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

As disclosed in our Annual Report on Form 10-K for the fiscal year ended February 1, 2025, in addition to the risks inherent in our operations, we are exposed to certain market risks.

Interest Rate Risk

We are exposed to changes in short-term market interest rates and these changes in rates will impact our net interest expense. Certain cash, cash equivalents and restricted cash generate interest income that will vary based on changes in short-term interest rates. In addition, we have swapped a portion of our fixed-rate debt to floating rate such that the interest expense on this debt will vary with short-term interest rates. Refer to Note 1, Summary of Significant Accounting Policies, of the Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended February 1, 2025, for further information regarding our interest rate swaps.

As of November 1, 2025, we had $1.2 billion of cash, cash equivalents and restricted cash and $0.5 billion of debt that has been swapped to floating rate, and therefore the net asset balance exposed to interest rate changes was $0.7 billion. As of November 1, 2025, a 50-basis point increase in short-term interest rates would have led to an estimated $3 million increase in interest income during the third quarter ended November 1, 2025, and conversely a 50-basis point decrease in short-term interest rates would have led to an estimated $3 million decrease in interest income during the third quarter ended November 1, 2025.

Foreign Currency Exchange Rate Risk

We have market risk arising from changes in foreign currency exchange rates related to operations in our International segment. On a limited basis, we utilize foreign currency forward contracts to manage foreign currency exposure to certain forecasted inventory purchases, recognized receivable and payable balances and our investment in our Canadian operations. Our primary objective in holding derivatives is to reduce the volatility of net earnings and cash flows, as well as to reduce the volatility of net asset value associated with changes in foreign currency exchange rates. Our foreign currency risk management strategy includes both hedging instruments and derivatives that are not designated as hedging instruments. Refer to Note 1, Summary of Significant Accounting Policies, of the Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended February 1, 2025, for additional information regarding these instruments.

During the third quarter and first nine months of fiscal 2026, foreign currency exchange rate fluctuations were primarily driven by the strength of the U.S. dollar against the Canadian dollar compared to the prior-year period. The estimated impact of foreign exchange rate fluctuations on our revenue had an unfavorable impact of $13 million and $44 million in the third quarter and first nine months of fiscal 2026, respectively. The estimated impacts of foreign exchange rate fluctuations on our net earnings in the third quarter and first nine months of fiscal 2026 were not significant.

Item 4. Controls and Procedures

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in the reports we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the U.S. Securities and Exchange Commission’s (“SEC”) rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer (principal executive officer) and Chief Financial Officer (principal financial officer), to allow timely decisions regarding required disclosure. We have established a Disclosure Committee, consisting of certain members of management, to assist in this evaluation. The Disclosure Committee meets on a regular quarterly basis and more often if necessary.

Our management, including our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) promulgated under the Exchange Act), at November 1, 2025. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, at November 1, 2025, our disclosure controls and procedures were effective.

There were no changes in internal control over financial reporting during the fiscal quarter ended November 1, 2025, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II — OTHER INFORMATION

Item 1. Legal Proceedings

For information about our legal proceedings, see Note 10, Contingencies, of the Notes to Condensed Consolidated Financial Statements, included in this Quarterly Report on Form 10-Q.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

c) Stock Repurchases

On February 28, 2022, our Board approved a $5.0 billion share repurchase program. There is no expiration date governing the period over which we can repurchase shares under this authorization. For additional information, see Note 9, Repurchase of Common Stock, of the Notes to the Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q.

Fiscal PeriodTotal Number of Shares PurchasedAverage Price Paid per ShareTotal Number of Shares Purchased as Part of Publicly Announced ProgramApproximate Dollar Value of Shares that May Yet Be Purchased Under the Program
August 3, 2025 through August 30, 2025320,184$70.00320,184$3,095,000,000
August 31, 2025 through October 4, 2025-$--$3,095,000,000
October 5, 2025 through November 1, 2025147,689$82.75147,689$3,083,000,000
Total fiscal 2026 third quarter467,873$74.03467,873$3,083,000,000

Item 5. Other Information

Rule 10b5-1 Plan Elections

During the fiscal quarter ended November 1, 2025, none of the Company’s directors or officers (as defined in Rule 16(a)-1(f) of the Securities Exchange Act of 1934, as amended) adopted, terminated or modified a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement (as such terms are defined in Item 408 of Regulation S-K of the Securities Act of 1933, as amended).

Item 6. Exhibits

3.1Amended and Restated Articles of Incorporation (incorporated herein by reference to Exhibit 3.1 to the Current Report on Form 8-K filed by Best Buy Co., Inc. on June 12, 2020).
3.2Amended and Restated By-Laws (incorporated herein by reference to Exhibit 3.1 to the Current Report on Form 8-K filed by Best Buy Co., Inc. on June 14, 2018).
31.1Certification of the Chief Executive Officer pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2Certification of the Chief Financial Officer pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1Certification of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002(1).
32.2Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002(1).
101The following financial information from our Quarterly Report on Form 10-Q for the third quarter of fiscal 2026, filed with the SEC on December 5, 2025, formatted in Inline Extensible Business Reporting Language (“iXBRL”): (i) the Condensed Consolidated Balance Sheets as of November 1, 2025, February 1, 2025, and November 2, 2024, (ii) the Condensed Consolidated Statements of Earnings for the three and nine months ended November 1, 2025, and November 2, 2024, (iii) the Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended November 1, 2025, and November 2, 2024, (iv) the Condensed Consolidated Statements of Cash Flows for the nine months ended November 1, 2025, and November 2, 2024, (v) the Condensed Consolidated Statements of Changes in Shareholders’ Equity for the three and nine months ended November 1, 2025, and November 2, 2024, and (vi) the Notes to Condensed Consolidated Financial Statements.
104The cover page from our Quarterly Report on Form 10-Q for the third quarter of fiscal 2026, filed with the SEC on December 5, 2025, formatted in iXBRL (included as Exhibit 101).

(1)The certifications in Exhibit 32.1 and Exhibit 32.2 to this Quarterly Report on Form 10-Q shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to liability of that section and shall not be incorporated by reference into any filing or other document pursuant to the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing or document.

Pursuant to Item 601(b)(4)(iii) of Regulation S-K under the Securities Act of 1933, as amended, the registrant has not filed as exhibits to this Quarterly Report on Form 10-Q certain instruments with respect to long-term debt under which the amount of securities authorized does not exceed 10% of the total assets of the registrant. The registrant hereby agrees to furnish copies of all such instruments to the SEC upon request.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

BEST BUY CO., INC. (Registrant)
Date: December 5, 2025By:/s/ CORIE BARRY
Corie Barry Chief Executive Officer
Date: December 5, 2025By:/s/ MATTHEW BILUNAS
Matthew Bilunas Senior Executive Vice President, Chief Financial Officer & Enterprise Strategy
Date: December 5, 2025By:/s/ MATHEW R. WATSON
Mathew R. Watson Senior Vice President, Finance – Controller and Chief Accounting Officer