US electronics retailer Best Buy reported higher earnings for the fourth quarter (Q4) ending 31 January 2026, even as overall revenue edged lower.

Enterprise revenue for Q4 FY26 totalled $13.81bn, compared with $13.94bn in the quarter ending 1 February 2025.

Net earnings rose significantly to $541m from $117m.

Gross profit totalled $2.88bn, edging down from $2.91bn a year earlier, while comparable sales slipped 0.8%.

Operating income increased to $721m, lifting the operating margin to 5.2% of revenue, compared with 1.6% in the prior-year quarter.

Basic earnings per share (EPS) climbed to $2.58 from $0.55 while diluted EPS increased to $2.56 from $0.54.

Revenue in the domestic segment reached $12.57bn, down from $12.71bn in the same quarter last year.

Domestic online revenue stood at $4.91bn, declining 2.3% on a comparable basis and representing 39% of domestic revenue, compared with 39.5% a year earlier.

Domestic gross profit rate was 20.9%, broadly unchanged year-on-year.

The company said growth in Best Buy Ads and Marketplace was largely offset by lower product margin rates.

International revenue was $1.23bn, broadly flat compared with Q4 FY25, with a 0.5% increase driven mainly by favourable foreign exchange effects and partly offset by a 1.3% drop in comparable sales.

International gross profit rate declined to 20.5% from 21.4%. For the full year, revenue was $41.69bn, up from $41.52bn.

Gross profit eased to $9.373bn from $9.385bn, with gross margin narrowing to 22.5% from 22.6%.

Operating income rose to $1.389bn from $1.262bn and net earnings to $1.069bn from $927m.

Best Buy expects FY27 revenue of $41.2bn to $42.1bn and adjusted diluted EPS of $6.30 to $6.60.

Best Buy CEO Corie Barry said: “Our comparable sales, while within our guidance range, declined 0.8% compared to last year. Our data sources show our overall market share was at least flat, pointing to slightly softer customer demand for our industry during the holiday quarter.”