Best Buy Co., Inc. (NYSE:BBY) shares are trading higher on Friday.
The company reported second-quarter 2026 adjusted earnings of $1.28 per share on Thursday, beating the consensus of $1.21.
BBY is showing upward movement. Check the full analysis here.
Sales increased slightly by 1.6% year over year to $9.44 billion, beating the consensus of $9.24 billion.
Best Buy reaffirmed fiscal 2026 adjusted earnings per share guidance of $6.15-$6.30 versus consensus of $6.17.
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JPMorgan analyst Christopher Horvers reiterated the Overweight rating on the stock, raising the price forecast from $88 to $89.
Horvers says June and July comps were 3%, with quarter-to-date comps running in low single digits — likely toward the high end since management is baking in a post-back-to-school slowdown despite easier compares.
The analyst adds that Best Buy flagged both sales and EPS trending toward the upper end of full-year guidance.
Net-net, aside from any potential post-BTS pause — and with no evidence so far of more episodic shopping — Horvers thinks the stock's setup has objectively improved into the holidays, and views the margin guide as conservative given tariff and supply-chain efficiency levers.
Per Horvers, blended tariff rates are moving higher, but Best Buy is leaning on mitigation while vendors step up support. He cites the sourcing mix: about 25% from the U.S./Mexico (no tariffs), roughly 30%–35% from China at a ~25% blended rate (half at 30% and half at 20%), and the remaining ~40% from Vietnam, India, South Korea, Taiwan and others with varying tariffs.
Horvers reiterates an Overweight, contending the pull-forward in computing, TVs, and appliances is largely past and a larger installed base should support a soft landing this year.
The analyst expects average selling prices to keep rising as AI features permeate mainstream consumer electronics.
Horvers also sees a credible path to a 5% operating margin over time (vs. 4.1% last year), with 6% becoming feasible when key categories — especially home theater — turn positive.
BBY Price Action: Best Buy shares are trading higher by 1.33% to $73.63 at publication on Friday.
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